HTC against Viettel’s proposed acquisition of EVN Telecom

15 Nov 2011

Hanoi Telecom Company (HTC) has submitted a letter to the Competition Administration Department within Vietnam’s Ministry of Industry and Trade criticising Viettel’s proposed acquisition of struggling telecoms operator EVN Telecom, stating that if approved, such a deal would breach the country’s Competition Law. According to a report by Viet Nam News, HTC, which operates mobile network Vietnamobile alongside Hutchison Telecom, believes that if Viettel were to acquire EVN Telecom’s W-CDMA network, the military-run company would hold more than half of the country’s total 3G frequency resources. This, the company said, would break Article 18 of the Competition Law and could prevent rival companies from competing effectively.

CommsUpdate reported last month that HTC had submitted a proposal to the government to purchase the network infrastructure of EVN Telecom, which is a subsidiary of utility firm Electricity of Vietnam. Shortly after, Viettel made moves to acquire EVN Telecom’s infrastructure facilities, while cable company VTC is also reportedly interested in the struggling operator. In January 2011 the purchase of a 49% stake in EVN Telecom by the Corporation for Financing and Promoting Technology (FPT) was approved by the government, but FPT announced it had pulled out of the deal three months later.

Vietnam, EVN Telecom, Hanoi Telecom Company (HTC), Viettel Telecom