GTel to join mobile information market

The Ministry of Information and Communications is finalizing formalities to grant an early license to GTel Telecom Corporation, under the Ministry of Public Security, to offer mobile services.

The mobile information market is awaiting a newcomer, GTel. Existing operators are concerned because behind GTel is Vimpelcom, the second biggest mobile service provider in Russia.

New kid on the block

It is rumored that GTel does not have abundant financial resources, so it will have to rely on its Russian partner, Vimpelcom, said to have invested $1 billion into the GTel Mobile network, the biggest investment ever in a domestic mobile network.

Experts said that to quickly operate its network, GTel will learn from HT Mobile’s experience. GTel will organize tenders to choose equipment providers and installers like HT Mobile hired Nortel. Analysts say GTel will have to choose this method because it needs to quickly implement its network but doesn’t have sufficient human resources.

As a newcomer, GTel will face labor shortage challenges because it is in the public security sector, which has no relation with telecom. Experts say this operator will lure employees of other mobile networks with incentives and titles.

Frequency change

The Ministry of Public Security on November 2, 2007 signed a decision to establish the Global Telecom Corporation or GTel. Previously, the Ministry and Vimpelcom signed a principle agreement during Prime Minister Nguyen Tan Dung’s official visit to Russia in September 2007. Under the agreement, a GSM-based mobile telecom joint venture named GTel Mobile will be established in Vietnam. Vimpelcom also announced it would invest $1 billion into Vietnam in the next few years to develop a GSM system. The Russian partner said also participating in this joint venture is the US’ Millennium Global Solutions Group.

It is said that the Ministry of Information and Communications will allow GTel to provide mobile services at 1,800 MHz. However, experts say that if GTel uses this frequency, it will have to install many more base transceiver stations than those who are licensed to use 800-900 MHz.

An official from the Ministry of Information and Communications on January 17 confirmed that GTel asked permission to supply GSM-based mobile services, and the Ministry is working on the necessary formalities. He also said GTel will be licensed to use the 1,800 MHz frequency.

“According to Vietnam’s WTO commitments, we don’t restrict the number of mobile service providers in Vietnam, but if our frequency resources run out, we can’t license new networks. The effective frequency (800-900 MHz) is out and we only have 1,800 MHz frequency left,” the official said. (Buu Dien VN Newspaper)