- Green Growth
- Your Consultant
CMC Telecom’s general director Nguyen Duc Thanh said the merger would allow the new company to cut the costs of replicated services and operations and allow the boosting of potential products and services parallel to scaling up investment into telecom infrastructure.
In the coming period CMC Telecom will focus on promoting telecom products and services including broadband internet, international and inter-provincial and internal transmission services and online teleconferencing.
The newly merged company has set ambitious targets, including reaping VND1 trillion ($48 million) in revenue by 2015, installing infrastructure and services in 20 localities and serving at least 250,000 customers.
When questioned over the merger, CMC Technology Group chairman Ha The Minh said CMC had stepped into the telecom-internet market in 2007. Since telecom infrastructure had been under state ownership, CMC had to set up two separate companies CMC Telecom and CMC TI to go ahead.
“Enforcement of the Telecom Law from 2011 which allowed businesses from assorted economic sectors to participate in the telecommunications market, particularly in the construction of telecom infrastructure, prompted a breakthrough, leading to our decision to merge the businesses,” said Minh.
CMC Telecom was first established in 2007 capitalising on strategic cooperation with EVNTelecom. In the past five years the company has developed a customer base of around 50 major businesses in insurance, securities, aviation and several other fields.
CMC TI was founded by CMC in 2008 in cooperation with the state-owned investment fund State Capital Investment Corporation (SCIC), which initially held a 51 per cent stake in CMC TI. It aimed to develop telecom networks for infrastructure development.
In July 2011 after the Telecom Law came into force, CMC and another partner Geleximco bought the SCIC’s stake in CMC TI. The decision to merge CMC Telecom and CMC TI came after the acquisition was finalised.
“The CMC Group decision to merge these two businesses is a move in the right direction, as it would help it bolster investment efficiency and match current development trends,” said Deputy Minister of Information and Communications Le Nam Thang.