World VoIP NewsSK Telecom cancels further investment in VietnamSK Telecom cancels further investment in Vietnam

SK Telecom cancels further investment in Vietnam


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South Korea's SK Telecom has announced that it is to cease investing in its Vietnamese subsidiary, citing lower than anticipated profits and subscriber growth.
­South Korea's SK Telecom has announced that it is to cease investing in its Vietnamese subsidiary, citing lower than anticipated profits and subscriber growth. However, the company says that it is not withdrawing from its S-Fone partnership with Saigon Post and Telecommunication Corporation (SPT).

The move will imperil S-Fone's plans to deploy a 3G network.

"Since 2003, it has been investing over $150 million in Vietnam attracted by higher growth potential in Vietnam's telecom market. But the investment return wasn't so good," a high-ranking SK Telecom executive told the Korea Times newspaper.

The decision is also reported to be linked to an agreement to convert the cooperation into a formal joint venture, and then sell a stake to South Korea-based private equity fund, Rutter Associates.

According to reports from the Mobile World analysts, the operator ended last September with around 2.5 million customers - representing a market share of just 2.5%.




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