All digital resources and frequencies devoted to EVN Telecom will be taken over by Viettel, according the Ministry of Information and Communications.

The Prime Minister ordered all state-owned companies, including the Electricity Group of Vietnam (EVN) to withdraw capital from non-core business interests, with the move intended to force EVN to concentrate on power production.

Hanoi Telecom and Viettel both wanted to buy EVN Telecom. After rumours that EVN Telecom could be bought out by Viettel, Hanoi Telecom sought the Government’s approval to acquire the entire 3G frequency band, infrastructure and optical cable system at the initial investment value as well as the firm’s remaining infrastructure required by the Government.

Hanoi Telecom claimed that the merger between Viettel and EVN Telecom would create a monopoly in the industry since Viettel holds the largest market share in the sector.

EVN Telecom was the sixth largest mobile network in Vietnam, operating the 096 network via 450 MHZ frequency band (a low frequency band which is easily diffracted by waves). It attracted only a small number of subscribers as well as having a low revenue.

After nearly 7 years of operation, EVN Telecom is currently in severe debt to Viettel and the Vietnam Post and Telecommunications Group./.