Mobile networks want to further cut charges

Mobile carriers are asking the Ministry Information and Communications for permission to slash charges by up to 20 percent, with Vietnam Posts and Telecommunications Group, or VNPT, being in the forefront.

The ministry should approve the charge reduction proposal, telecom giant VNPT, which operates VinaPhone and MobiFone networks, said in a statement issued on Monday, showing anxiety over a new relevant rule that took effect in early July.

The new regulation aims to restrict unhealthy competition among telecom services providers, so it caps promotions at 50 percent of a reload card’s value. The carriers have thrown support behind the rule, but are worried that lack of strong promotions would make it hard to attract customers.

This is why some mobile networks are calling for the ministry to permit them to cut charges. VNPT said in the statement that it expected the ministry’s early approval of their suggestion for slashing the charges by 10 percent to 20 percent. This proposal went to the ministry early this year.

Bui Quoc Viet, spokesman for VNPT, said the charge cuts would benefit clients and would go in line with the ministry’s price management policy.

The price reduction, Viet said, is based on quality of services and connection fees among mobile networks. VNPT said VinaPhone and MobiFone had around 60 million active subscribers.

Like VNPT, another major mobile carrier, Viettel, is proposing the ministry allow for the charge reductions. In January this year, Viettel asked for the ministry’s permission to revise down fees by up to 20 percent but it has got no reply since.

Tran Minh Huy, deputy director of HCM City branch of Viettel Telecom, said Viettel submitted the charge reduction proposal early this year.

“We have got no green light from the Ministry of Information and Communications to proceed with the downward adjustment of fees,” he said.

Le Nam Thang, deputy minister of Information and Communications, told Buu Dien Vietnam (Vietnam Post) newspaper that the charge competition would be better than promotions.

“The charge cut proposal is good for clients. However, we need time to make a decision on the issue to ensure a healthy and fair competition for all market participants,” he added.

A decision by the ministry is expected to be out some time this week.

The General Statistical Office reported that in the first six months of the year, the country saw 22.8 million new phone users registered, up 12.2 percent year-on-year, taking to 151 million the nation’s total, 80 percent of them mobile customers.

Tags: Vietnam Mobile charges, Vietnam Telecom, Vietnam telecom maket