Tougher rules on mobile promotions drafted by ministry

Representatives of the nation’s seven mobile service providers offered comments on a draft circular that would regulate customer promotions in the telecommunications sector, at a recent meeting conducted by the Ministry of Information and Communications in Ha Noi.

The regulation would aim to give the telecommunications sector a more level playing field and prevent major players from using deep pockets to offer massive promotions, according to the ministry.

When approved, the ministry circular would be promulgated pursuant to Government Decree No 37/2006/ND-CP on trade promotion activities, but apply only to mobile phone services.

Deputy Minister of Information and Communications Le Nam Thang told the meeting that, while promotions would be more tightly regulated, the ministry would also encourage enterprises to compete with quality services and take appropriate measures to reduce costs for users.

One provision in the draft circular would limit service providers to offering promotions for no more than 90 days per year, with no single promotion to last longer than 45 days.

They would also not be permitted to offer freebies worth over 50 per cent of the value of a pre-paid card, excluding offers made in conjunction with free mobile phones.

The ministry said it would keep a particularly close eye on the three leading service providers – Viettel, Mobifone and VinaPhone – to ensure their compliance.

The companies have been offering free equipment, cutting monthly fees and adding large amounts of “free money” to SIM cards.

Last week, Mobifone launched a promotion advertising 170 per cent additional value with a SIM card.

VinaPhone was giving customers free calls from the fourth to 10th minute of any call, and Viettel was charging only VND200 per minute instead of its usual VND1,000.

Newcomer Vietnamobile was offering the steepest discount of all, with 920 per cent additional value on each pre-paid card.

In September, the Ministry of Trade and Industry’s Trade Promotion Agency sent an official letter to all telecoms, warning them not to offer promotions of more than 50 per cent, but none heeded the warning.

At the conclusion of the recent meeting, ministry officials said that they would continue to revise the draft circular prior to its expected issuance in May. The regulations would have an intended effective date of July 1, 2010.

VietnamNews

Tags: Vietnam Telecom, Vietnam telecom market, Vietnam telecom rules