The ailing mobile network, S-Fone, is having more difficulties than ever, with huge debts to employees and other companies.
Employees demand pay and insurance
On December 17, many S-Fone employees gathered in front of the corporate office in Hoan Kiem District, Hanoi, protest unpaid wages.
Do Thi Ngoc Khanh, head of S-Fone's trade union in northern region, said the company now has around 20 employees, all of whom have been practically unemployed since November 5.
Vu Tuan Anh, director of S-Fone in Hanoi said the company still owes tens of billions of VND to its employees, and that there is uncertainty about when they will be able to make good on their financial obligations.
S-Telecom Mobile Phone Center, whose network brand name is S-Fone, was established by Saigon Post and Telecommunications Services Corporation (SPT) along with three foreign partners. In 2010 SPT and its South Korean partner, SK Telecom announced a change in their partnership from a business cooperation contract to a joint venture.
Their debt to other companies has led S-Fone to lay off many of their workers, who have yet to receive their salaries or have their social insurance paid. Even those who continue to work for the company have not received payment.
Currently, the HCMC based telecom firm Saigon Tel, is the biggest share-holder of S-Fone. They have plans to restructure and upgrade S-Fone into 3G service provider, but they have encountered difficulties in finding funds.
The financial difficulties of the firm are so large that even their offices have been cut off from water and power, and retain only one base transceiver station which has also been cut off from power.
