The MoU came about after HT Mobile received approval to replace its CDMA technology with an e-GSM one.

Under the deal, all calls and messages to HT Mobile subscribers will be diverted to their newly-registered S-Fone's numbers starting this week.

Once the switch is completed, HT Mobile subscribers will enjoy a wide-range of CDMA services as well as S-Fone's customer care programmes.

"As the first CDMA network in Vietnam, we acknowledge the difficulties HT Mobile faced. With this deal, we hope to protect consumer rights by continuing to provide CDMA technology for those who prefer it," said Ho Hong Son, managing director of S-Fone.

Son said the switch will be free-of-charge, adding that all HT Mobile handsets will eventually be compatible with the S-Fone network.

Meanwhile, S-Fone, a joint venture between SLK Telecom of South Korea and the Saigon Postel, has been tweaking its network capacity to better serve HT Mobile's subscribers.

Nguyen Anh Dung, deputy general director of Ha Noi Telecom, said: "We believe that our companies' close relationship will not inconvenience customers during the switch."

HT Mobile in March received a licence from the Ha Noi People's Committee to change from CDMA (Code Multiple Division Access), to GSM (Global System for Mobile communications) technology.

The fledgling mobile carrier, a joint venture between Ha Noi Telecom and Hutchison Telecommunication, earlier this year invested US$650mil to facilitate the move. It has since announced it will pump an additional $150mil into the transfer.

Industry experts attribute HT Mobile's decision to the scarcity of CDMA enabled handsets on the market compared to the readily available GSM handsets.

The Ha Noi-based company, which debuted last January, has only 200,000 subscribers at present, well shy of its target of one million users after one year of operation.

Six mobile carriers conduct business in Vietnam: S-Fone, HT Mobile and EVN Telecom utilise CMDA technology, while Viettel, Vinaphone and Mobifone use GSM.

According to the International Telecommunication Union (ITU) there are 2.5bil GSM subscribers worldwide versus 500mil CDMA subscribers.

Source: VietnamNet Bridge