MVNOs face cancellation of licences

11 Jun 2012

Dong Duong Telecom and VTC Telecom could have their mobile virtual network operator (MVNO) licences revoked if they fail to roll out services, VietNamNet cites Le Nam Thang, deputy minister at the Ministry of Information and Communications (MIC), as saying. The announcement follows the launch of a review into telecoms licence holders, which has already seen ten companies, including Duong Quoc, VietGlobal Communication and SNLink, stripped of their concessions for failing to launch services within two years of being licensed. According to TeleGeography’s GlobalComms Database, the MIC approved state-run Vietnam Multimedia Corporation’s (VTC’s) application to operate as an MVNO April 2009. VTC, which operates a number of multimedia related services and is a licensed WiMAX operator, was awarded its MVNO permit in June 2010 and pledged to launch services by the end of the year. In August 2009 the MIC granted a further MVNO licence to Dong Duong Telecom, which had said it planned to share 3G network facilities with military-owned Viettel and launch services in 1Q10. In early 2011 however the two MVNO licensees blamed strong competition in the country’s mobile market on their hesitancy to launch operations. The companies allegedly said that difficulties in developing customer bases and marketing strategies to compete with other providers with existing infrastructure had delayed their launch.