VNPT seeks okay for reshuffling proposal
VNPT Group will not establish more than three telecommunication corporation affiliates in the north, central and southern regions under its reshuffling proposal.
The Ministry of Information and Communications (MoIC) has agreed in principle to allow the group to make changes to its restructuring proposal, but it must receive prime ministerial approval. VNPT wants provincial telecom companies to be separated from post offices and operate under its current direction instead of belonging to the regional telecommunication corporations as planned.
MoIC Minister Le Doan Hop said the separation of telecom and postal businesses would pave the way for the group’s Vietnam Post Corporation to start operating independently from early next year.
“The MoIC agreed with the reshuffling and the group must clearly explain its reasons for this change to the government and facilitate the operation of Vietnam Post Corporation along with ensuring operations for the provincial telecom offices,” said Hop.
The move comes amid a backdrop of telecommunications convergence market trends and fierce competition from other operators.
Pham Long Tran, acting president of VNPT’s board, said the original VNPT Group proposal was submitted to the government in 2002 and approved in 2005, and during that time network technologies have changed which the group must adjust to.
“Inter-province telecom network management and the entities of regional telecommunications corporations in northern, central and southern regions do not match with the current status quo.
“The group will pilot direct management with its provincial telecom companies until the group leaders find out a suitable form for the fast-changing demand of technology and the market,” said Tran.
Provincial telecom companies will have their own seals, business licences and bank accounts and comply with the group’s organisation regulations approved by the government with unified investment and infrastructure management.
“VNPT has a strong telecom infrastructure, which must be diversified into other sectors in the telecommunication convergence stage such as transmission for broadcasting sector in order to provide telecom services along with broadcasting ones,” said Pham Hong Hai, director of the MoIC’s Telecom Department.
The other details in the restructuring proposal remain unchanged. The parent entity will control its affiliates through capital investment and will directly run the north-south transmission line business via a management board grouping its three affiliates, Vietnam Telecom International (VTI), Vietnam Telecom National (VTN) and part of the Vietnam Data Communication Company (VDC).
The presence of the north-south transmission line board will create a more independent and fair business environment for all operators in Vietnam as its affiliates will hire the line from the parent entity.
The parent entity will hold a 100 per cent stake in VDC and Software and Media Company (VASC) and more than 50 per cent of Vietnam Telecom Services Company’s (GPC) investment capital and Vietnam Mobile Telecom Services Company (VMS), which are scheduled to equitise later this year.
By the end of 2006, VNPT Group had total equity valued at VND56.5 trillion (USD 3.53 billion), 24-fold higher than that in 1995 when VNPT started telecom operations. Of which, the state’s stake was worth VND47.6 trillion (USD 2.97 billion), 23-fold higher than that of 1995.
