A Canadian company said it has won approval to build a personal communications services network in Vietnam.
“We have a signed contract with Saigon PTS, and we believe we have authorization for a concession in Vietnam,” said Douglas MacLellan, recently nominated as president and chief executive of Extreme Technologies Inc.
Saigon PTS Corp. is a relatively new Vietnamese joint stock company based in Ho Chi Minh City. Extreme said the partnership with Saigon PTS is through its subsidiary, Telecommunications American International, or TAI. The venture will use the name USA Telecom. Extreme hopes the network will be operational by mid-1996. The company said it hasn’t yet selected a technology, but is interested in Code Division Multiple Access.
Extreme is incorporated in British Columbia, but the company conducts business from Los Angeles. The company recently shifted its focus from telephony and audio ventures to wireless communications.
Extreme is acquiring Delaware-based PortaCom Wireless Communications Inc., which Extreme says has developed business opportunities in developing countries worldwide. The purchase price for PortaCom will be about 11.5 percent of the fully diluted share capital of Extreme, said J. Michael Christiansen, Extreme’s nominated executive vice president and chief financial officer.
Extreme intends to change its name to PortaCom Wireless Inc. if shareholder approval is received; company executives have been nominated but also must be approved.
There are three cellular networks in Vietnam at this time. An analog network branded Call-Link was launched about three years ago in Ho Chi Minh City by the government operator, Vietnam Posts and Telecoms, through its subsidiary Saigon Mobile Telephone Co., according to Economic & Management Consultants International Inc. Singapore Telecom International has holdings in the Call-Link network.
A second PTT entity, Vietnam Mobile Services, is launching new networks in Hanoi and Ho Chi Minh City, using Global System for Mobile communications technology. Service is expected to be expanded nationwide. Millicom Inc. has been contracted to operate the systems.
Extreme said it intends to initially launch service in southern Vietnam in the 1900 MHz frequency band. “The 800 and 900 MHz band contains the military and municipal officials, and it’s not easy to get them off. Our goal is to become a Millicom and go after emerging markets,” MacLellan said. “We also have found interesting opportunities in North Africa, the Middle East, Bulgaria, Czech Republic, Hungary and Macedonia. Our goal by the end of 1996 is to have 150 million pops under license.”
Howard Frantom, a pioneer with Los Angeles Cellular Telephone Co., will be the new company’s chairman of the board and chief operating officer.
