Vietnam’s first joint venture on LTE-based internet broadband services launched

November 03, 2010 | 14:14

(0) user say

Vietnam’s first joint venture on providing internet broadband services based on Long Term Evolution or LTE technology was formed between the Vietnam Posts and Telecommunications Group (VNPT) and Russian Alltech Group.

VNPTand Alltech Group (Alltech) signed on October 31^stan agreement to establish a new joint venture company named RusViet Telecom (RVT).

The joint venture will provide internet broadband services based on LTE technology, having chartered capital of VND1.6 trillion ($84.2 million). Of which, VNPT holds 51 per cent stake of the joint venture. Alltech partner will contribute into the joint venture management and business experiences, technologies along with funding.

VNPT has co-operated with Alltech Telecom to test 4G/LTE network and service in Viet Nam after receiving a test and frequency licences to build anddevelop 4G/LTE network and services in Vietnam and in such countries as Laos, Cambodia and Myanmar.

“We expect this investment project will take 5-7 years to achieve its targeted on internal return ratio or IRR. Investment cost for the test phrase will cost around $5 million and could reach up to $500 million at full scale,” said Evgeny Roytman, chairman of Alltech Telecom.

After two months receiving the test licence to build and develop 4G/LTE network in Hanoi and Ho Chi Minh City, the first base station was installed and transmitted signal successfully in Hanoi on October 10, delivering test mode services with internet access of speed up to 60Mbs.

Roytman added that both VNPT and Alltech were strongly committed to the project to bring to the Vietnamese consumers with new services and the same time would contribute to achieving the objectives of developing the national program on information technology applications set out by the Vietnamese government.

By Hai Van

vir.com.vn

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional