Viettel to deploy US$250mn nationwide network

Thursday, May 19, 2011

Vietnamese telecoms operator Viettel Group expects to invest US$250mn to deploy a fiber optic network across Peru to provide telecoms services, state news service Andina reported transport and communications minister Enrique Cornejo as saying.

"Viettel will invest this amount in the coming five years, but it's important to highlight that Viettel's concession will last 20 years," the official said.

The operator plans to deploy all necessary infrastructure to reach nationwide coverage, Cornejo said, adding that the telco expects to cover more isolated areas, such as the Sierra and Amazonia regions.

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The company recently won a concession in the 1,900 MHz band for the provision of mobile telephony services.

Through the contract, Viettel has agreed to pay US$1.3mn in cash and to provide internet access to 4,025 schools, a project with an estimated value of US$28.3mn, in exchange for the concession.

In its first year of operation, Viettel will have a minimum of 15,000 mobile lines in service, and 338,000 lines by its fifth year.

In related news, Cornejo said the government expects to award spectrum in the 700 MHz band in June. This spectrum will be used to offer 4G services.

The other mobile operators in Peru are Telefónica Móviles with 63.4% of the market as of December, Claro with 32.8%, and Nextel Peru with 3.9%.