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Tag: mobiFone

  • Vietnam’s MobiFone, AVG cancel acquisition agreement

    Vietnam’s MobiFone, AVG cancel acquisition agreement

    Vietnam Mobile Telecom Services Corporation (MobiFone) and shareholders of multimedia company Audio Visual Global (AVG) on Monday decided to cancel the share transfer agreement between the two companies.

    The decision was made several days after the Party Central Committee (PCC)’s Secretariat asked the Government to soon release the inspection results of a VNĐ8.89 trillion (US$395 million) acquisition by communications giant Mobifone

    Accordingly, MobiFone and AVG agreed to cancel the transfer of 344.66 million shares and refund each other the amount received under the agreement.

    AVG shareholders will refund the entire amount paid by MobiFone, while MobiFone will return to AVG the number of shares and assets transferred. At the same time, the two sides will try to not let the other party suffer more damages.

    Phạm Nhật Vũ, representative of AVG in the negotiations with MobiFone, agreed not to impose a fine and claim compensation while cancelling the deal.

    In addition to the amount paid to AVG, MobiFone said it had to pay some related expenses, such as hiring consultants. AVG has agreed to share this expense with MobiFone.

    AVG has made a deposit of VNĐ450 billion to proceed the agreement cancelation, MobiFone said in a press release on Tuesday.

    According to the AVG representative, there are many reasons for them to cancel the contract. First, since its acquisition, MobiFone has not operated and developed the AVG brand as planned and missed many opportunities and potential of AVG.

    Second, Vũ said since the contract was in effect, MobiFone had paid 95 per cent of the contract value. The deadline was over but MobiFone had not yet fulfilled its obligations to pay the remaining 5 per cent despite repeated requests by AVG.

    Since the inspection of the contract, the process of operating the AVG brand had caused many problems, damaging the reputation of both the parties. According to MobiFone and AVG, the cancellation of the contract is aimed at salvaging the damage.

    At the meeting, a MobiFone leader said the inspection process had impacted the completion of payment to AVG. He also said due to problems faced by AVG, the market had changed and MobiFone was not able to concentrate on developing AVG.

    In early 2016, Mobifone formally announced the acquisition of AVG to expand its television network, one of the company’s four main business areas. The details of the deal, however, were not disclosed.

    At the beginning of August 2016, the Government promulgated Document No 1344/TTg, asking the Government Inspectorate to investigate the acquisition. The Inspectorate found serious violations in the acquisition.

    Last Thursday, the Party Central Committee’s Office issued official letter No 6106-CV/VPTW on the handling of Mobifone’s acquisition of 95 per cent of AVG shares, which says that this is a serious, complicated and sensitive matter.

    The Secretariat said that the Government and the Inspectorate must be responsible for reviewing and settling cases in an objective and accurate manner under the law to ensure that punishment is given to the right person and lost State assets are revoked.

    Read more at https://vietnamnews.vn/economy/424281/mobifone-avg-cancel-acquisition-agreement.html#7mlG6OWYcGVqGrou.99

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  • MobiFone to be privatized next year

    MobiFone to be privatized next year

    Vietnamese state-owned operator MobiFone has been instructed to complete a privatization and restructuring process known as equitization in 2018, while former parent VNPT has been instructed to equitize in 2019.

    The Ministry of Information and Communications plans to assess and approve the restructuring plans of MobiFone as well as Vietnam Television Corporation and VNPost by the end of the month.

    VNPT will meanwhile submit its own restructuring plan during the same period in advance of an equitization in 2019.

    The government has revealed plans to concentrate on improving the strength of the companies rather than maximizing revenue from the privatization processes, and will decide whether to sell stakes to a few strategic investors or to many individual shareholders on a case-by-case basis.

    MobiFone was separated from VNPT is 2014 as part of the latter’s restructuring plan, which also involved dividing VNPT’s operations into three subsidiaries concentrating on infrastructure, services and sales respectively.

    After its separation, MobiFone commenced its equitization plan and appointed appraisers for an IPO. The company has drawn interest from a number of potential international investors, including Singtel, Telenor, Australia’s Telstra and Sweden’s Comvik.

    To complete the process MobiFone will need to be reappraised – its last valuation in 2015 has expired. Previous valuations have suggested that the company could be worth over $4 billion.

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  • Singtel interested in MobiFone privatization

    Singtel interested in MobiFone privatization

    Singtel has joined the ranks of operators interested in becoming the strategic partner of Vietnamese operator MobiFone.

    Singtel’s VP for business development Oliver Foo met with deputy ICT minister Pham Hong Hai recently to discuss a possible investment in the venture.

    The Vietnamese government plans to privatize the currently state-owned operator MobiFone, and is seeking a foreign operator interested in participating in the privatization. Companies including Norway’s Telenor, Sweden’s Comviq and Australia’s Telstra have previously expressed an interest.

    Now Singtel has also indicated it may want to participate in the opening up of the operator to private investors.

    MobiFone has an estimated brand value of $539 million. The company jointly controls the majority of Vietnam’s telecoms market together with fellow state-owned operator VinaPhone and military-run Viettel.

    But the government has not yet announced its plans for the privatization of MobiFone.

    MobiFone recently contracted Ciena to build a 300Gbps backbone networkspanning more than 1,400km across the country.

    Singtel has meanwhile been expanding its regional operations, having recently announced plans to indirectly increase its stakes in Thai mobile operator AIS and India’s Bharti Airtel.

  • MobiFone builds 300Gbps packet-optical backbone

    MobiFone builds 300Gbps packet-optical backbone

    MobiFone is leveraging Ciena technology to build the Vietnamese operator’s first high-capacity converged packet-optical  network.

    Currently provisioned with 300Gbps, the network spans more than 1,400 kilometers across the country from Hanoi to Ho Chi Minh City.

    This will help MobiFone provide high-speed mobile broadband services to businesses and consumers in more than 25 local provinces.

    With the network, MobiFone will be able to easily scale and automatically adapt network capabilities.

    Additionally, the network will use Ciena’s intelligent control plane technology to ensure survivability even in the case of multiple fiber cuts.

    ELCOM, a Ciena BizConnect channel partner, provided deployment services for this project.

    “Ciena’s cutting-edge optical platforms enable us to have a state-of-art backbone system. Demand for high-speed fixed and mobile data services, video content and the move to the cloud mean that network services in Vietnam have never been more important,” said Le Nam Tra, chairman of MobiFone.

    “With Ciena supporting the next evolution of the MobiFone backbone we can provide the scale and reach our consumer and business customers need for regional and international connectivity,” said the chairman.

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  • Mobifone deploys 300Gbps packet-optical backbone

    Mobifone deploys 300Gbps packet-optical backbone

    Vietnam’s second largest mobile operator Mobifone has constructed its fist high-capacity converged packet-optical backbone network using equipment from Ciena.

    The operator has deployed a network spaning more than 1,400km from Hanoi to Ho Chi Minh City. The network currently has a capacity of 300Gbps.

    Mobifone plans to use the network to provide high-speed mobile broadband services to businesses and consumers in more than two dozen provinces.

    “Ciena’s cutting-edge optical platforms enable us to have a state-of-art backbone system. Demand for high-speed fixed and mobile data services, video content and the move to the cloud mean that network services in Vietnam have never been more important,” Mobifone chairman Le Nam Tra said.

    “With Ciena supporting the next evolution of the MobiFone backbone we can provide the scale and reach our consumer and business customers need for regional and international connectivity.”

    MobiFone is currently a state-owned operator but is undergoing a privatization process. The company is seeking an international partner to take up to a 49% stake as part of this process, and international operators including Australia’s Telstra, Norway’s Telenor and Sweden’s Comviq have reportedly expressed an interest in making the investment.

    A recent report  from the Australian Financial Review indicates that Telstra is seen as a good fit as a formerly state-owned operator that has gone through the privatization process.

    Sources told the publication that Telstra met with Vietnamese officials in May to discuss a potential deal.

  • Global telcos eye stake in Vietnam’s Mobifone

    Global telcos eye stake in Vietnam’s Mobifone

    A number of international telecoms operators have reportedly expressed an interest in participating in the privatization of Vietnamese state-owned operator Mobifone.

    Companies including Norway’s Telenor, Sweden’s Comviq and Australia’s Telstra have shown interest in acquiring stakes in the company.

    Mobifone has an estimated brand value of $539 million. Plans for the privatization of the company have been in consideration since 2005 but the process has been repeatedly delayed.

    Now the government is pushing to complete the process in 2016-2017 as part of a push to hasten the privatization of state-owned enterprises.

    Australia’s Telstra could be a key partner for the operator. Telstra had previously been involved in the Vietnamese market as part of a partnership with Viet Nam Post and Communications, but exited the market in 2003. Now the operator is looking to return to the market by participating in the privatization of Vietnam’s telecom enterprises.

    Comviq is meanwhile a former partner to Mobifone and so it also has history in the market, while Telenor has been aggressively pursuing Asian expansion.

  • MobiFone Vietnam moves into retail

    MobiFone Vietnam moves into retail

    Vietnam telco MobiFone says it will focus on expanding its retail presence in the coming year as it competes for market share.

    MobiFone Vietnam is one of three key mobile phone networks fiercely competing for a share of the nation’s burgeoning telecommunications business.

    In recent years rivals Viettel and VinaPhone have all stepped up their retail presence, but MobiFone has less profile at storefront level.

    Speaking at a shareholders meeting last week, MobiFone Vietnam general director Cao Duy Hai said the company will focus on its businesses in telecom, television, retail and multimedia in the 2015-20 period.

    He said the company planned “a large distribution channel” to increase MobiFone’s market share. Local commentators suggest this may include partnerships with mobile phone brands such as Samsung, Apple, Oppo and Huawei, all strong players in Vietnam.

    Viettel has stores in many cities and provinces throughout the country and VinaPhone has co-operated with Apple, among others, to distribute its products. But MobiFone tends to rely on trade through independent stores who can connect customers to any of the networks.

    MobiFone is 100 per cent Government owned and also has businesses in construction, minerals, broadcasting and multimedia.

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