~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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Startec Invades Vietnamese Cyberspace

BETHESDA - Startec Global Communications Corp., a growing provider of voice-over-Internet protocol (VoIP) services to emerging economies, today unveiled an agreement to provide a full array of IP services to Vietnam's state-controlled Saigon Postel Corp. Startec said it is one of Saigon Postel's first foreign partners. Startec said its agreement with the Saigon Postel is the latest example of its focus on early entry into emerging markets with advanced technology, "a strategy that strongly distinguishes the company from traditional long-distance carriers," Startec officials said.

"Because these markets are regulated and not well understood by many in the industry, few carriers are attempting to enter them, notwithstanding the potential for substantial gross margins," Startec Chief Executive Officer Ram Mukunda said in a statement. "As commerce continues to develop in these countries, the demand for IP services such as virtual private networks, Web hosting and other IP solutions will significantly expand." According to the communist nation's state-run Saigon Times Daily, the number of telephone lines in Vietnam increases an estimated 18,000 to 20,000 each week. And that kind of growth is emblematic of why Startec is targeting emerging economies, regardless of a country's international political status, a company spokesperson told Washtech. Even though countries such as Vietnam try to censor online content, the spokesperson said he has personally watched Web surfers in restricted countries such as China still readily download unobstructed Western news portals.

On Monday, Startec said it expanded its reach into more emerging economies by inking eight agreements with partners operating in Eastern Europe and Asia. These new partners have chosen Startec to provide IP-based services including VoIP in Russia, Estonia, former-Soviet Union state Georgia and South Korea, among other countries. Startec's network of international gateway and domestic switches, IP gateways and ownership in 15 undersea fiber optic cables also provides IP-based voice, data and video service to major long-distance carriers, Internet service providers and various portals. "EStart," Startec's online brand for a series of ethnic virtual communities, also offers bundled services, e-commerce and other enhanced IP-based services to residential and business customers.

With more than 85 gateways deployed in more than 43 countries, the Bethesda, Md.-based company's VoIP revenue of $18.6 million in the second quarter makes it one of the two major VoIP carriers in the world, according to Startec.

By Michael P Bruno - Washtech. - October 6, 2000.


Vietnam firm seeks mobile phone licence

HANOI - Vietnam's semi-private Saigon Posts and Telecommunications (Saigon Postel) said on Tuesday it had applied for a licence to create a $200 million mobile phone network with a foreign partner. An official at Saigon Postel told Reuters his firm and the foreign partner, whom he did not name, would invest the money under a business cooperation contract (BCC) to create Vietnam's fourth mobile network.

A source close to the deal said South Korea's SK Telecom was expected to sign a deal for the network with Saigon Postel late this month following negotiations with the Vietnamese firm since early last year, he said. Saigon Postel is a joint stock company with a majority stake controlled by the government. The project would create the first mobile phone network involving a Vietnamese firm with private shareholders.

The official said Saigon Postel had submitted a licence application to the regulator body, the Directorate-General of Posts and Telecommunications (DGPT). He said he did not know when it would be approved but that the project would take at least six months to become operational once approval was issued. Another source who spoke to Reuters said the licence would be granted at the end of December, and the network would only become operational after June 2001, once work, including tenders for equipment and installation, was completed. The Saigon Postel official said the new network would use Code Division Multiple Access (CDMA) technology to improve quality and security for subscribers. "Using CDMA, we will be able to serve a larger number of clients compared with existing networks and offer more new value added services," the official said.

USERS ON THE RISE

The existing mobile phone networks are state-run Vietnam Posts And Telecommunications Corp (VNPT)'s Vinaphone, VMS-Mobiphone operated under a BCC between VNPT and Sweden's Comvik International Vietnam AB, and Call-Link operated by state-run Saigon Telecommunications Co. The latter firm covers only Ho Chi Minh City and its surrounding area, while the other two networks are nationwide. VNPT has forecast that mobile phone users in Vietnam will leap to 2.2 million in 2005 from a current 600,000, bringing total telephone users to seven million.

Government officials have said that Saigon Postel also plans to provide long-distance and international telephone service using Voice Over Internet Protocol (VOIP) technology. Vietnam signalled a breaking of VNPT's non-mobile monopoly earlier this year by granting a licence to Military Electronic Telecommunications Co (Vietel) to provide such a service domestically. The DGPT has said the service will start in mid-October. Under current regulations, foreign participation in the telecoms service market is limited to BCCs, which restrict foreign firms to financing, technology transfers and some management rights in return for revenue share.

Under a trade pact signed with the United States in July and expected to be ratified next year, Hanoi committed to gradually open the market to joint-venture telecom services but these will have to lease circuits from Vietnamese operators.

Reuters - October 3, 2000.