Friday, August 25, 2006

Vietnamese entrant to telecoms market

By Cheang Sokha
Phnom Penh Post, Issue 15 / 17, August 25 - September 7, 2006

Viettel Corporation, the Vietnamese telecommunications company owned by the Vietnamese army, has been given permission to operate in Cambodia, according to government sources.

"The government gave a license to Viettel to operate a VOIP [Voice Over Internet Protocol] on June 2," said Chem Sangva, director, Inspection Department at the Ministry of Post and Telecommunications (MPTC). "In partnership with the Ministry of National Defense, Viettel will operate the VOIP system in Cambodia for 35 years."

MPTC Minister So Khun said that Viettel, which will operate under the name of Viettel Cambodia Pte Ltd Company, is looking for an office and is preparing to set up its access codes and network for operations.

"We want to have more investment and more competition to make phone calls cheaper," Khun told the Post on August 22.

Minister of National Defense Tea Banh said his ministry will cooperate and coordinate with Viettel to make the operation run smoothly.

"The operation will start very soon," Banh said. "We make business to make money, if not we will not do it. We will benefit the country, not only the Ministry of Defense."

Viettel will initially invest US$1 million in setting up the new network in Cambodia, according to Vietnam News.

Viettel is entirely owned by the Vietnamese military. Its CEO is General Hoang Anh Xuan. One industry source who requested anonymity said the company was growing rapidly within the Vietnamese market and had negotiated attractive financing from vendors who sold it much of its network equipment so that it had a manageable debt load.

In Vietnam, Viettel is viewed as a low-cost provider and has been very aggressive in its pricing schedule. At present it offers mobile, internet and fixed line services. It is speculated that Cambodia wants to build a link to Vietnam's mobile subscribers and that Viettel will be used as a gateway.

According to an article in the Vietnam Post, there are anywhere from 11 to 17 million mobile phone users in Vietnam. Figures vary, as turnover is high and there are discrepancies in the reporting process.

VOIP is the communications system that lets people make telephone calls via computer over the internet. At present, many internet cafes in Cambodia offer these services without a license.

Sangva said the illegal use of cheap overseas calls at internet cafes is causing the government to lose more money than it did from the abusive use of local Thai telephone networks along the Cambodian-Thai border in provinces such as Banteay Meanchey and Battambang.

"About 50 percent of internet cafés and about 90 percent of overseas calls via the internet are operating without licenses," Sangva said. "They will face the law very soon; the Prime Minister gave us the green light to fight them."

He said the VOIP to be operated by Viettel will cost the same as those illegal operations and he believes that illegal operators will stop their activities by themselves and people will turn to use the legal one.

On March 31, the Council of Ministers adopted the draft telecommunications law, which has 18 chapters and 103 articles. The draft was sent to the National Assembly and after it becomes effective MPTC officials will have the right to crack down and punish offenders who have been operating illegally.

2 comments:

Anonymous said...

AH HUN SEN guarantee the Vietcong Viettel Co to establish in Cambodia for 35 years? Well, Just hope that AH HUN SEN can hold on to power that long! All AH HUN SEN shaddy business contracts will be void and no Vietcong can do a damn thing about it!

If the Vietcong want a truely business and these Vietcong will have to compet for it just like anyone else! No special treatment and No arm twisting or fucken favor through bribery or puppet government!

I know how these Vietcong must have felt doing business in Cambodia these day and for these Vietcong doing business in Cambodia is like walking through the park and smell the fresh air!This is too easy for the easy and it is time to make it harder for these Vietcong!Cambodia will have to allow more competition to come in and let see if the Vietcong can swim or sink!

Cambodia don't even have law regarding Voice Over Internet Protocol! The Vietcong will have a fun time vaccum all kinds of information on Cambodian people!

Anonymous said...

From border posting to high-tech business, the Viets have a carte blanche. What's left?

Bravo you arse Hun Sen, you lucky Hanoi's dog!

08/27/06
AKnijaKhmer