Vietnam's Second Largest Cellphone Network to Shortly Go Public

Vietnam's Second Largest Cellphone Network to Shortly Go Public

Vietnam Post & Telecoms Corp. (VNPT) plans to privatise MobiFone, the second largest mobile phone network in Vietnam, after the cessation of the contract with their Swedish partner this May, said VNPT General Director Pham Long Tran.

The privatisation process will begin after the conclusion of the co-operation contract between the Vietnam Mobile Telecommunications Services Company (VMS) and Sweden’s Comvik Corporation, Comvik International Vietnam AB on May 19, 2005.

Meanwhile, a representative of MobiFone said that the privatisation is nearly definite and the firm is waiting for specific guidance from VNPT on implementing the process.

So far VNPT has not revealed the details of the privatisation plan of MobiFone, but signals are that the State will hold over 50 per cent of the total shares.

Another official of VNPT said that the equitisation of MobiFone aims to gradually reduce the monopoly of VNPT in the Vietnamese mobile phone market and help MobiFone operate more effectively.

MobiFone currently has around 2.35 million subscribers, second only to Vinaphone’s 2.6 million subscribers.

VMS and Comvik International Vietnam AB, a subsidy of Kinnevik (Sweden), have invested more than US$456 million in the MobiFone network.
VietnamNet