By Emmanuel Tumanjong

YAOUNDE, Cameroon--Vietnam's Viettel Group will become the third mobile-phone operator in Cameroon after signing an accord with the government, state-run daily "Cameroon Tribune" reports Monday, saying an agreement was signed Friday by the two parties in Yaounde.

Viettel Foreign Affairs Manager Nguyen Duc Quang said his company will start operating in 2014 after establishing itself in the country and recruiting an expected 6,500 workers during 2013, the newspaper reports.

He also told the paper the company will be investing in third generation, or 3G, technology, enabling it to provide voice, data, video and internet services to its customers.

Cameroon's minister of telecommunications, Jean Pierre Biyi Bi-Essam, said last week the government had chosen Viettel Cameroun Sarl over two other bidders to buy the West African nation's remaining mobile phone licenses.

Viettel will now compete with Orange Cameoun controlled by France Telecom (FTE.FR), and South Africa's MTN Group Ltd. (MTN.JO), which has over nine million subscribers among Cameroon's 20 million inhabitants.

The company, which will cover some 81% of Cameroon's territory when it starts operating, said it will cut its service rates by between 15% and 20%.

India's Bharti Airtel Ltd. (532454.BY), Maroc Telecom (IAM.CL) and Korea Telecom were among Viettel's rival bidders in the mobile-phone license tender that was launched earlier this year.

Write to Emmanuel Tumanjong at realtimedesklondon@dowjones.com

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