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The Ministry of Information and Communications will propose to abolish the regulations on management of the average price of telecommunications services
At the end of the month 2/2019, through public opinion and via direct dispatch, Ministry of Information and Communications (TT&TT) has received a “call for help” form of Vietnamobile mobile telecommunication joint stock company (Vietnamobile) on a number of issues on telecommunications and radio frequency management for enterprises.
After 12 years of entering the market, Vietnamobile currently accounts for only 3.6% of the mobile market share in Vietnam. Before this difficult reality, this network sent a petition to help Prime Minister Nguyen Xuan Phuc to avoid the risk of being “destroyed”.
Accordingly, this network is pleased to allocate more 850 MHz band to Vietnamobile to create competition for Vietnam’s mobile information market. The operator also would like to have a reasonable and satisfactory policy in the bidding of 2,600 MHZ for small mobile telecommunications enterprises like Vietnamobile and Gtel to have the opportunity to use this band.
Vietnamobile said the telecom market in Vietnam has a clear division according to the size of its business. Among them, Viettel 50.6%, Vinaphone 24.8%, Mobifone 20.16%, Vietnammobile 3.6% and Gtel 0.4%.
The Ministry of Information and Communications does not stipulate and issue the selling price of telecommunications services
In the document to the Prime Minister, Ms. Fong Chong mentioned the need to clarify the link between average rates and costs. According to CEO of Vietnamobile, the regulation does not allow lower selling prices only applicable to enterprises with dominant market position in accordance with the Competition Law.
Vietnamobile expressed concern that the three Viettel, MobiFone and VinaPhone networks agreed that mobile telecommunications businesses in the market cannot sell less than VND 50,000 / month for each mobile telecommunications package. Enterprises with small market shares are only allowed to sell 5% lower for their mobile telecommunications packages.
Regarding the criteria for determining the dominant market share, Vietnamobile does not agree to the TT-TT’s proposed amendments in Decree 25: “Any operator will be considered a dominant market enterprise. if the proportion of the population with access to services on the land mobile telecommunications network accounts for 90% of the total population of the country or more ”.
Vietnamobile believes that this proposal is not in accordance with the current law on competition as well as the amended Competition Law (effective next July). Because, according to this proposed amendment, for every operator allowed to establish a network infrastructure on a national scale, the network system covering 90% of the total population of the whole country will become a position with a position market, even if that network has no subscribers and 0% market share.
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Saint SIM package is attracting many users of Vietnamobile network. |
According to General Director of Vietnamobile, “the large enterprises discuss and agree with themselves, imposing a minimum selling price to force to destroy small businesses is not in accordance with the provisions of the Competition Law (violation the prohibition of the Competition Law on the agreement on competition restriction), distorting the market ”.
The operator said that it is necessary to allow telecom enterprises to actively build telecommunication packages in accordance with the provisions of the competition law, classify lower sale rates for each of the telecommunications businesses with market share. Different (enterprises with small market shares are allowed to sell mobile telecommunications packages with lower rates corresponding to market share).
Vietnamobile’s petition also proposed that the management agency should divide the current mobile telecommunications enterprises into 3 groups: the group of enterprises with a market share of 30% or more (dominant market), the group of marketing businesses from 15% to less than 30% and enterprises with a market share of less than 15%.
Responding to Vietnamobile’s petition, the representative of the Telecommunications Department (Ministry of Information and Communications) said: “For the management of the cost of enterprises, the Ministry of Information and Communications determines that this is not only a tool for management and regulation. of the state but also one of the important internal management systems of each telecommunications enterprise. ”
“Therefore in 2019, the Ministry will continue to adjust and supplement regulations to determine product prices, separately account for telecommunications products and services in line with international practices and in accordance with the real ones. as well as the ability to apply for telecommunications businesses in Vietnam. ”
“The fact that telecommunication companies have packages to provide service users is a reflection of the supply and demand in the market, and at the same time express the choice of service users about product packages in the Criteria: quality, price and richness of service. Since the introduction of the Telecommunications Law in 2009, the Government and the Ministry of Information and Communications do not stipulate nor issue the selling price of telecommunications services “.
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A transaction point of Vietnamobile network operator. Photo: Trong Dat |
Proposing to remove telecom service “floor price” for operators
After receiving Vietnamobile’s petition on February 25, 2019, on February 27, the Telecommunications Department held a meeting with mobile telecommunications enterprises (including Vietnamobile) to discuss about price management orientation in the coming time.
At the meeting, the Department of Telecommunications also discussed Vietnamobile’s recommendations. This is aimed at a common goal between the state and business management agencies, which is to create really useful policies, to go to life, so that the telecommunications industry continues to be both competitive and developing. for long-term benefits. Besides, it also aims to create conditions for businesses to grow together.
The Telecommunications Department also said that in 2019, the Ministry of Information and Communications continued to reform administrative procedures, shifting from the current pre-check form to post-check. Acquiring Vietnamobile’s proposal, the ministry will adjust the draft to replace Decree 25/2011 / ND-CP, which is submitted to the Government for the abolition of regulations on registration, price announcement as well as management. Average price of telecommunications services to manage under the Law on Price and implementation guidelines documents. Enterprises are fully proactive in issuing packages suitable to consumers’ demand and purchasing power.
Particularly for determining the dominant market position, the Ministry of Information and Communications continues to comply with the Competition Law, and also submits to the Government the expected specificization of a number of other criteria to identify enterprises with adequate market power. tell.
Particularly for the determination of dominant market position, the Ministry of Information and Communication continues to comply with the Competition Law and at the same time submit to the Government the expected specificization of some other criteria to identify enterprises with strength. significant market. Comparing with this draft, Vietnamobile is a company with a market share of less than 10%, so it is totally impossible to belong to the group that determines the dominant market enterprise as Vietnammobile stated in the above document.
Trong Dat