Vietnam operator to pump US$100mn into telecoms sector

Vietnam's largest mobile operator, Viettel, has signed an agreement with Haitian state telco Teleco and its majority owner, the central bank of Haiti (BRH), to invest up to US$100mn to expand telecommunications services in the Caribbean's poorest country. Under the partnership, Viettel will provide an initial investment of US$59mn, and an additional US$40mn over four years, according to a statement from the Haitian government, which said the deal represented "one of the largest foreign direct investments in Haiti." The agreement - which includes construction of the nation's first fiber optic cable network - will create a new company in which Viettel will have a 60% stake, while BRH, Teleco and affiliates will have the remaining 40%. The international tender process won by Viettel was structured by the International Finance Corporation ( IFC), the private sector arm of the World Bank Group. Viettel's investment comes as a sign of hope for the earthquake-struck country. Even before the disaster, which affected infrastructure, fixed-line penetration in Haiti reached 1.8%, mobile penetration was about 35% and internet penetration did not pass 1%.