CMC Corp merges two telecom affiliates

06/04/2015

01.08.2013

CMC Corp, one of the leading technology firms in Viet Nam, has announced a merger of its two affiliates, CMC Telecom and CMC TI, as part of a development strategy.
 
As a result of the move, CMC Telecommunication Infrastructure Joint Stock Co (CMC Telecom) will become the company's only unit involved in the internet and telecommunications sectors. Ha The Minh, chairman of CMC Corporation, explained that the firm joined the Internet-telecom market in 2007 and at that time, as regulations required telecom infrastructure to belong to the State, CMC had to set up two enterprises, with one specializing in telecom infrastructure and the other offering telecom services. However, the Telecommunications Law took effect last year, enabling enterprises of any sectors to join the telecom market.

CMC Telecom general director Nguyen Duc Thanh said: "The merger marks an important landmark in restructuring our business areas in order to reduce costs and foster the development of potential sectors and products."

The equity of CMC Telecom, after the unification, is estimated to increase from VND192 billion to VND500 billion in 2015. Besides, CMC Telecom targets to obtain VND1 trillion (US$48,8 million) in revenue, develop infrastructure and offer telecom services in 20 large cities and provinces until 2015.

In addition to expanding telecom infrastructure and services, CMC Telecom will invest in the submarine fiber cable system as well as develop the service chain from basic telecom to value-added services such as broadband Internet, teleconferencing and database center.
 
Vietnam News & The Saigon Times