Government to intervene in “electric pole war”

Enterprises involved in the quarrel over leasing prices for electric poles must keep negotiating or the Government will step in.

This is the result of a meeting between the ministries of Information and Communications, Trade and Industry and Finance on January 26 about the Electricity of Vietnam Group’s leasing prices for electric poles to carry telecom cables.

According to the meeting, by February 28, if related sides (EVN, Vietnam Post and Telecommunications Group – VNPT and the Army Telecom Group – Viettel) don’t reach an agreement, then the three above ministries will reconsider leasing prices based on production costs.

The three ministries will issue a joint circular this year, which will be upgraded into a decree on the share of infrastructure facilities.

Pham Hong Hai, chief of the Ministry of Information and Communications’ Telecommunication Department, said that ministries didn’t intervene in this case early because under the current regulations, the state doesn’t control the leasing prices of electric poles.

“But if the negotiation cannot end, the state must take tough decisions to ensure safety and competition among businesses,” Hai said.

VietNamNet questioned Hai whether the MoIC supports allowing telecom firms to build their own poles or not, Hai said that the ministry’s viewpoint is encouraging businesses to share the available facilities, including the system of electric poles. In areas where electric poles are not enough, they may have to build new poles.

Tags: Vietnam electric pole war, Vietnam elecyticity, Vietnam energy