The Ministry of Information and Communications has decided to revoke the mobile virtual network license of Dong Duong Telecom as the company has not started its services within the prescribed time limit, said a source from the ministry.
Dong Duong Telecom got a license to operate a mobile virtual network in August, 2008, making it the first company in Vietnam to get such a license. Mobile virtual network operators are not allowed to build their own mobile infrastructure, so they have to use infrastructure of other operators through business agreements.
Earlier, Deputy Minister of Information and Communications Le Nam Thang told the Daily that mobile virtual network operators were left with little chance in the local mobile telecom market.
Mobile virtual networks often emerge in the markets where monopoly still exists, service charges are high and competition is not so intense. However, competition among mobile network operators in the local market is now very fierce and service charges keep going down, he explained.
Nevertheless, in principle, if the companies that want to develop mobile virtual networks satisfy all the requirements, the management agency will have to grant them licenses.
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