S Fone experiences teething problems

12 Aug 2003

Vietnam’s new CDMA operator SLD Telecom has said it is very disappointed with its initial subscriber take-up rates after just 5,000 customers signed up to its S Fone service during July. The company, owned by a consortium comprising Korean companies SK Telecom [KSE: 17670] and LG Telecom [Kosdaq: 32640] plus Vietnamese firms Dong Ah and Saigon Postel, is hopeful subscriber acquisitions will increase during August when more CDMA handsets are made available. However, retail outlets have cited S Fone’s poor network coverage outside Hanoi and the lack of SMS connectivity with the country’s existing GSM networks as the main factors behind the lower-than-expected demand.