Top officials at the Ministry of Posts and Telecommunications said the contract with international telecommunications provider Telstra would not be renewed after its expiration in October.
They maintained the Australian firm failed to make an official request for extension in time.
Minister So Khun said last week at a National Assembly committee meeting that the government had decided to operate international telecommunications with a new public enterprise, to be formed by the ministry and the little-known Phnom Penh-based AZ Distribution Co.
The business cooperation with Telstra would end automatically at the end of contract of October, the minister told lawmakers.
“Telstra raised this issue after the government made the decision. So the firm can not complain about it,” So Khun said, claiming the former country director of Telstra failed to answer to a question on its future plan when the ministry asked.
But Telstra officials maintained Monday that the company has planned to remain in Cambodia and repeatedly notified the ministry of its intention.
“Telstra has always made it clear that we have a long-term commitment to Cambodia’s telecommunications development in partnership with the government,” said spokesman Trevor Dalziell in a statement. “We are prepared to commit substantial investment in Cambodia’s future and have made this intention clear on many recent occasions to senior officials and others.”
According to government and Telstra officials, both signed a 10-year business cooperation contract in 1990, in which the firm would develop all the necessary systems for international telecommunications and share the revenues with the ministry.
Telstra’s officials say they have invested about $20 million here installing satellites, an international exchange gateway and an international network management system.
“Cambodia now has a world-class international telecommunications system, providing international voice and data services to over 200 countries,” Dalziell wrote.
But, according to the contract, all the assets would be transferred to the government upon the contract expiration.
The government has appointed AZ as a partner of the ministry’s new public enterprise, Cambodia Telecom, which would expand the ministry’s fixed-line services, and operate a new international gateway, according to the ministry.
“The government encourages the public enterprise to operate the international telecommunications after the end of the contract with Telstra,” So Khun reiterated last week.
Lawmaker Son Chhay called the move “a big mistake” Monday, and noted that Telstra has done a good job and has fulfilled all contract requirements.
So Khun acknowledged Cambodia Telecom would need an experienced, internationally recognized partner to manage operations because AZ is a small local company that has no experience in telecommunications.
The minister said negotiations between the local company and NTT, a giant Japanese telephone company, have failed and the ministry’s joint venture would need to find another partner.
So Khun said Camintel, another ministry joint-venture with Indonesia-based Indosat providing domestic fixed-line phone service, would remain as a competitor.
A business coordinator on the NTT’s participation said Monday that Japan still has interests in the participation, but is waiting for clearer signals from the ministry.
