"Negotiations ... for the coordination of frequencies to avoid transmission jamming have not yet been finalized," the Tuoi Tre newspaper said quoting a source at Vinasat.

"In the absence of agreement on these questions, the selection of a partner for the Vinasat project is not possible," the daily added. No new date was given for launch.

Vietnamese authorities refused to comment. "This project is continuing to be studied, we have nothing to say," a project official said.

Vietnam has reserved several orbital positions with the Geneva-based International Telecommunication Union (ITU).

The position 132E had been selected for the launch but according to sources, Hanoi has had problems negotiating the coordination of frequencies with Japan, which also uses the same position, and with Tonga, which owns 130E and 134E.

Russian state company NPOPM, the European consortium of Astrium (EADS)-Alcatel Espace, Lockheed-Martin of the United States and the Japanese-American consortium of Nec-Toshiba-Orbital Science Corporationare competing for the contract to build, launch and maintain the satellite in orbit.

Sources say that Vietnam had earlier this year asked the candidates to guarantee the coordination of the frequencies, a demand they have all refused.

"The manufacturers cannot guarantee the coordination of frequencies. That is a government-to-government problem," said a foreign expert, requesting anonymity.

The position 132E is reserved for Vietnam until February 2006, at which point it will theoretically be withdrawn by the ITU if it is not used.

Vinasat will be of average size, with 20-28 communication modules each capable of carrying four-six television channels and will be in operation for 15 years.

The project is expected to cost more than 200 million dollars.

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