VietNamNet Bridge – The network infrastructure remains the asset of SK Telecom, a partner in the joint venture, while SPT is still negotiating on the partner’s withdrawal from S-Fone project.

S-Fone gone without saying goodbye

In early 2013, S-Fone’s workers hung a banderole in front of the Hanoi branch, requesting SPT Company to pay salaries and unemployment allowances.

The managers of SPT then promised that all the workers’ requirements would be settled. However, an executive of SPT revealed that the most of the managers of S-Fone have left, while SPT, the holding company, was also in big difficulties as well.

At that time, Vu Tuan Anh, Director of the Hanoi branch of S-Fone, told reporters that he once advised workers to leave one year ago.

S-Fone has experienced very difficult days since its establishment. Most recently, it decided to shift to use GSM instead of CDMA technology. However, no considerable progress has been made, while no suitable partner has been found.

An analyst commented that SPT has made a great success when it can preserve S-Fone until now. Even in the “golden age” of S-Fone, it could only break even, while it has never made profit. SPT reportedly had to pump tens of billions of dong into S-Fone to “feed” the network.

A lot of S-Fone’s clients complained that they cannot use S-Fone services any more, while they have not received any explanation about this or any compensation.

Hoang Sy Hoa, General Director of SPT, said SPT still maintains the operation of S-Fone, but there has been no more use.

SPT still looking for partners for S-Fone

The huge debts incurred by S-Fone have put a heavy burden on SPT. The Vietnam Post and Telecommunication Group (VNPT) and the military telecom group Viettel both said S-Fone and the holding company SPT are their big debtors.

In recent meetings with the Ministry of Information and Communication (MIC) and telecom groups, SPT repeatedly asked the groups to extend the debt payment deadline and not to cut services.

SPT has also asked VNPT and Viettel to allow it to connect with the two network operators’ infrastructure, so that it can make profits from the international call services. However, only Viettel has given the nod.

Experts believe that the best solution now for S-Fone is to declare bankruptcy. If so, the problems of S-Fone would be settled in accordance with the Bankruptcy Law, the SPT would not sink together with S-Fone.

Hoa of SPT said SPT is making every effort to deal with S-Fone’s problems. SPT is conducting negotiations with SK Telecom on how to treat S-Fone’s infrastructure items.

“To date, S-Fone’s infrastructure remains the asset of SK Telecom,” Hoa explained.

He went on to say that SPT is still making every effort to look for partners for S-Fone, though he admitted that it is a very difficult task.

In fact, SPT has called for the investments in S-Fone for the last many years. However, no investor intends to pour money into the network.

When asked if the state management agencies would give a “lifebuoy” to save S-Fone, Pham Hong Hai, Head of the Telecommunication Department under MIC, said the Vietnamese telecom market is a competitive market, where weaker rivals will have to leave.

Buu Dien