Korean partner rumored near pulling out of S-Fone mobile network
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VietNamNet Bridge –The relationship between Saigon Postel and SK Telecom, the partners in the joint venture mobile network S-Fone, appears to be on the rocks.
S-Fone’s managing director, Ho Hong Son, told the online newspaper VNExpress that the terms of cooperation between Saigon Postel and SK Telecom must change. The two sides are still discussing a new contract, but have not reached an agreement. Son also confirmed that S-Fone’s operations are stable.
After six years in operation, S-Fone (mobile numbers beginning 095) is facing challenges in terms of technology, investment, legal status and operating system. Saigon Postel has grown unhappy with a business cooperation contract that limits its rights to basic information in business and development strategies.
Son says that S-Fone needs new motivation to develop, especially a fresh form of cooperation between Saigon Postel and SK Telecom. The two sides are negotiating to find a more suitable model under the guidance of the Government, Son adds.
S-Fone has been praised for its new services like Mobile Internet, international roaming and Voice SMS, which are based on upgraded CDMA technology, Rev.B. However, experts claim that it will be difficult for this network to become a giant among mobile operators in Vietnam.
Strategic disagreements between the Vietnamese and Korean partners have reportedly caused many missed opportunities for S-Fone. In addition, its CDMA technology is a handicap: Vietnamese customers tend to favor mobile services based on GSM technology.
S-Fone was Vietnam’s third mobile phone service provider, after Mobiphone and Vinaphone, but it has only 7.3 million subscribers after six years of operation, less than 10% of the market.
Source:vietnamnet.vn
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