Telecom Cambodia finds Vietnamese ISP partner

[PHNOM PENH POST]

State-owned Telecom Cambodia has signed a business cooperation agreement with Vietnam National Post and Telecommunications Corp in order to bolster TC’s product portfolio and coverage area, company officials said yesterday.

Telecom Cambodia offers both fixed-line phone and internet services in the Kingdom. Vietnam National Post and Telecommunications, also state-owned, will provide the technology and equipment necessary for Telecom Cambodia to grow its operations in the Kingdom, and in turn allow the company to better compete in a crowded sector, TC director general Lao Saroeun said.

“We do believe that the agreement will help us to increase number of customers, expanding business activities and generating more revenue,” he said.

The boost in services would also result in lower prices for customers, he added.

Lao Saroeun declined to offer the financial details of the agreement, which is set to begin early next year, saying only that some kind of revenue-sharing agreement would be reached.

Vietnam National Post and Telecommunications officials could not be reached yesterday for comment.

Sreang Tito, chairman of Cambodia Data Communication, which owns internet service providers AngkorNet and MekongNet, pointed to the high level of competition among the Kingdom’s ISPs.

There were presently over 50 licensed ISPs in Cambodia, he said, calling the business environment “very difficult”. TC’s Lao Saroeun confirmed the figure, but said that only a small number of ISPs were active in the market.

The Ministry of Posts and Telecommunications claimed the Kingdom had 680,000 internet subscribers at the end of 2010, although the ministry’s figures often have been disputed by industry experts.

Ministry of Posts and Telecommunications director general Mao Chakrya said yesterday the Kingdom was working toward increased development of its communication and information technology capacity.

Telecom Cambodia last year earned revenues of US$30 million, according to Lao Saroeun, with the aim of reaching $34 million in 2011. The company is also among the first state-owned enterprises expected to list on the Cambodia Securities Exchange early next year, a deadline that Lao Saroeun confirmed.