Saigon Postel seeks potential partners for S-Fone joint venture

17 Nov 2010

Vietnamese telecoms operator Saigon Post and Telecommunications (Saigon Postel, SPT) is looking for a new partner in its wireless S-Fone joint venture with SK Telecom (SKT), following the South Korean company’s planned withdrawal. According to Vietnam Business News, S-Fone, which was formed by Saigon Postel and SKT in 2001 under a business cooperation contract (BCC) model, was transformed into a joint venture in August 2010 following government approval. SKT had earlier confirmed it was halting investment in the company, citing low profits and subscription rates. Following the transformation, Saigon Postel now holds an 80% stake in the new joint venture, while SKT holds the remainder, although Saigon Postel has said it will buy into the foreign stake within the next two years and then sell between 20% and 30% of S-Fone to new partners. ‘We welcome all partners who are interested in investment in Saigon Postel in general and S-Fone in particular,’ said Ho Hong Son, general director of Saigon Postel. Alongside the transformation, S-Fone said it would change its business strategies and expand coverage to attract more customers; according to TeleGeography’s GlobalComms Database, the cellco had a mobile subscriber base of 7.99 million at 30 June 2010, representing a market share of 6.8%.