Small telecom firms fear monopoly over EVN Telecom deal

Hanoi Telecom has sent a request to the Prime Minister to seek intervention for Viettel's plans to acquire EVN Telecom.

>> Hanoi Telecom plans to acquire EVN 3G network

>> EVN Telecom faces judgment day

Fears of a monopoly in the telecom market have been sparked by rumours that EVN Telecom could be bought out by Viettel, pushing smaller telecom companies out of business. These fears were made public in a document by Hanoi Telecom, which was submitted to the Prime Minsiter.

Currently, Vietnamobile, owned by Hanoi Telecom, is sharing the same 3G network with EVN Telecom. As a result, if Hanoi Telecom failed to take over operations of 3G bandwidth, it would have difficulties providing service.

Officials from Hutchison Telecom, which invested nearly $1 billion in Vietnamobile, expected the government to consider the case because of the large amount of their investment. Vietnamobile would be at particularly high risk if this acquisition were not to go through.

Previously, Hanoi Telecom also sent a document to the government, asking for the acquisition of half of 3G bandwidth and infrastructure, along with the the fiber optic networks of EVN Telecom at the original investment value.

According to Deputy Prime Minister Vu Van Ninh, the government is still evaluating proper procedures for EVN Telecom.

Meanwhile, officials from Viettel maintain their interest in acquiring EVN Telecom. They have supposedly worked out a detailed development plan if the merger goes through.

Many experts said that the merger would create an unfair market for smaller companies such as Hanoi Telecom/Vietnamobile, Sai Gon Postel/Sfone, Gtel/Beeline, FPT Telecom, Vishipel and CMC Telecom.

3G services have been forecast by some to see a boom in Vietnam by late 2012. And many experts say that if the merger happens, smaller companies, such as Hanoi Telecom/Vietnamobile, Sai Gon Postel/Sfone, Gtel/Beeline, FPT Telecom, Vishipel and CMC Telecom, would be at a competitive disadvantage.

Viettel, which now holds the largest market share in the Vietnamese telecom sector, will have many advantages if it buys EVN Telecom, including 33,000 km of fiber optic cables.