Vietnam Telecommunication Market and Policies - Promoting the development of telecommunicationMr. Giang Van ThangInfrastructure & Interconnection DivisionViet Nam Telecommunications Authority

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Outline

Introduction to VNTATelecoms InfrastructureTelecoms MarketTelecoms Policy and Regulationswww.vnta.gov.vn*

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*www.vnta.gov.vnI. Introduction to VNTA

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www.vnta.gov.vn* August 15th, 2011 - Viet Nam Telecommunications Authority (VNTA) has established.Prime Ministers Decision No. 35/2011/QD-TTg dated June 27th, 2011 .The establishment of VNTA based on the merger of the Department of Telecommunications MIC and the Authority of ICT Quality Control.Viet Nam Telecommunications AuthorityVNTA is an agency of the Ministry of Information and Communications, is obliged to advising the Minister of MIC in state-managing and organizing the performance of state management tasks as to telecommunications throughout the country.

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www.vnta.gov.vn*Telecoms Resources and Statistics DivisionVerification and Certification Center No .1Verification and Certification Center No .3ORGANIZATIONAL STRUCTURE OF VNTA

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*www.vnta.gov.vnII. Telecoms Infrastructure

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Telecom networks*www.vnta.gov.vnNational backbone: 1.650 Gb/s (VNPT, Viettel).International Networks: 2.5 Gb/s CSC (China, Vietnam, Laos, Thailand, Malaysia, Singapore)80 Gb/s SE-ME-WE-3 (Japan, Korea, China (Singapore, Vietnam, Philippines, Hong Kong, Taiwan, Bruney, Malaysia, Indonesia,)450 Gb/s AAG (Malaysia, Singapore, Thailand, Brunei, Vietnam, Philippin, Hongkong, US..) 50 Gb/s IAG (Singapore, Vietnam, Philippines, Hong Kong, Taiwan, China, Japan, US)Satellite transmission: VINASAT -1; VINASAT-2.9 International Gateway ExchangesOver 6.000 Trunks connected to over 37 countries

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Internet networks*www.vnta.gov.vnConnection bandwidth through VNIX: 85.000 Mb/sInternational connections:- US, Japan, China, Korea, HongKong, Australia, Singapore...etc- Total of Capacity: 390.720 Mb/sVNIX networks

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III. Telecoms Market*www.vnta.gov.vn

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www.vnta.gov.vn*Government gradually open the Telecoms marketsFirms can apply for a license to establish telecommunication network ( FBO Licence)

1992VNPT: The Only Business1995VNPT independent with DGPT; 02new companies Viettel and Saigon Postel; GSM Technology with Mobifone1997ISP (VNPT, FPT, SPT, NetNam)2000SPT (mobile), VoIP (Viettel, SPT)2004Stop monopolistic (VNPT, Viettel, EVN)2012Competition in market telecoms: 15 FBOs,90 SBO s (ISPs)Viet Nam Telecoms: Telecom liberalization

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*www.vnta.gov.vnVNTA 2012. All Right ReservedMobileTelecom CarriersFixed

No.ClassificationMar-2013Details1Number of licensed telecommunication operators9Viettel, VNPT, FPT, HTC, SPT, VTC, CMC(TI), Gtel, Dong Duong2Number of current fixed telecommunication operators5Viettel, VNPT, FPT, SPT, VTC3Number of licensed mobile telecom operators6Vinaphone, VMS (Mobifone), Viettel, Gtel, SPT, HTC (Vietnamobile)4Number of current mobile telecom operators6Vinaphone, VMS (Mobifone), Viettel, Gtel, SPT, HTC (Vietnamobile)5Number of licensed 3G operators4Vinaphone, VMS (Mobifone), Viettel, HTC6Number of 3G current operators4Vinaphone, VMS (Mobifone), Viettel, HTC7Number of licensed mobile operators without MVNO1VTC8Number of current mobile operators without MVNO09Number of licensed Internet service operators91VDC (VNPT), FPT, Viettel, etc.10Number of current Internet operators50VDC (VNPT), FPT, Viettel, etc.

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*www.vnta.gov.vnNumber of fixed telephone subscribers to December 2012.Fixed TelephoneMarket shares (subscribers) of fixed-line telephone service providers to December 2012.

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*www.vnta.gov.vnNumber of mobile phone subscribers (2G+3G) to December 2012 Market shares (subscribers) of Mobile phone service providers to December 2012.

Mobile phone

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www.vnta.gov.vn*InternetNumber of fixed (wired) broadband Internet subscribers to December 2012Market shares (subscribers) of Internet fixed (wired) broadband providers to December 2012Internet Users: 31.196.978; 35.49% populationNumber of mobile broadband Internet subscribers via 3G network: 2.996.310

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*BROADCASTINGNumber of Broadcasting

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*Radio:Can receive Voice of Vietnam - VOV: 10.919 communes 98,3% Can receive Voice of Local regions: 9.645 communes 86,8% Number of households use the radios: 2.157.025 households - 11% Television:Can receive the Vietnam Television VTV: 10.411 communes 93,7% Can receive the Local region Televisions: 8.936 communes 80,4% Number of households use the Televisions: 21.900.456 households - 92.6% BROADCASTING

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IV. Telecoms Policies and Regulations*www.vnta.gov.vn

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www.vnta.gov.vn*Telecoms Policy & Regulation SystemLaw on Telecommunications (2009)Law on Information Technology (2006)Prime Ministers Decision No. 32/2012/Q -TTGNational Strategy on Development oftelecommunication up to 2020

Law on Electronic Transactions (2005)

Law on Radio Frequency (2009)Governments Main Decrees & DecisionsDecree No 106/2011/N-CP Altering, supplementing Decree No26/2007/N-CP detailing the Law on e-transactions.

Decree No 97/2008/N-CP on the management,provision and use Internet services and electronic information on the Internet.

Prime Ministers Decision No. 1755/2010/Q -TTgNational Strategy on Transforming Viet Nam into an advanced ICT country

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*The Law on Telecommunication dated November 23th 2009; New points in the Telecom Law:The Law on Telecommunication *Ensure a healthy competitive environment in telecoms activities.Legal Framework supports and promotes Convergence (Broadcasting and Telecommunication Infrastructures and Services).Domestic and foreign individuals, organizations of different economic sectors are able to participate into telecoms investment and trading.Enforce the role of management of the state in the telecom field.Licensing of valuable resources (frequency, telephone numbers, domain names, Internet addresses) could be implemented by beauty contest or auction.Ensure public utility telecom services include universal and compulsory telecom services in rural, remote areas.

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*Promote Competition (Participation of Private Sector). Manage the cross ownership in the telecom market; Develop and implement the proposed scheme on mobile number portability (MNP).The Government will regulate carefully the universal services.Telecom Rare Resources will be managed following the market economy mechanism, some could be assigned through Beauty Contest and Auction.Telecoms Tariff: equivalent to the neighboring countries in the region.Licensing: No limit of the number of licenses (If Telecom Rare Resource could be planed).Enhancing the Post Regulation: Telecoms service charges, Quality of services etcViet Nam Telecom: Policies, Regulations and Plans

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*Strengthening the Competition Regulation in the Telecom market. Make the passive telecom infrastructure schemes.Licence of passive telecom infrastructure installations: Transparent and simple procedures Promoting the telecom infrastructure sharing: The essential and passive telecoms infrastructures etcPromoting the inter-industries infrastructure sharing: Transport, energy, water supply and other technical infrastructures Strengthening the under-ground telecoms cables: The safety of people, the good-looking of citiesViet Nam Telecoms: Policies, Regulations and Plan

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*The Decision of Prime Minister approved the Project Bring Vietnam to a strong country of ICT: Set-up the broadband telecom infrastructures on the nationwide, to digitalize the transmission of televisions2020: The most hamlets use the broadband telecom infrastructures. The mobile broadband services to 95% of inhabitants.2015: 20-30% households: have computers and access broadband internet. > 90% of households: use the televisions, 80% can receive the digital television.2020: 50-60% households: have the computers and access broadband internet. The most of households: use the televisions and receive the digital television.Viet Nam Telecoms: Policies, Regulations and Plan

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*The stable development telecom marketRestructuring the Viet Nam telecommunications marketThe restructuring plan for State-owned telecom operators: VNPT, Viettel, etc.Submit the Government the Decree on the stable development of telecom market.Future Orientation

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*www.vnta.gov.vn

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**- August 15th, 2011 - Viet Nam Telecommunications Authority (VNTA) has established.Prime Ministers Decision No. 35/2011/QD-TTg dated June 27th, 2011 on functions, rights, responsibilities and structural organization of the Viet Nam Telecommunications Authority within the Ministry of Information and Communications, the Viet Nam Telecommunications Authority shall be an agency performing the consultative and regulatory functions in the field of telecommunications nationwide.The Viet Nam Telecommunications Authority, which is established based on the merger of the two agencies within the Ministry of Information and Communications, those are the Department of Telecommunications and the Authority of Information and Communications Technology Quality Control, shall inherit both the regulatory experience of the Authority of Information and Communications Technology Quality Control as well as consultative and policy-making experience of the Department of Telecommunications.VNTA is an agency of the Ministry of Information and Communications, is obliged to advising the Minister of Information and Communication in state-managing and organizing the performance of state management tasks as to telecommunications throughout the country, including the following tasks:a) To participate in the formulation of mechanisms, policies, strategies, planning and legal documents on telecommunications;b) To manage the telecommunication market, the telecommunication business and public-utility telecommunication services and public-utility telecommunication activities, organize the implementation of the provisions of the telecommunication laws;c) To perform some other duties of state management on telecommunications as assigned or delegated by the Minister of Information and Communications.*The Viet Nam Telecommunications Authority, which is Management agency specialized in telecommunication is an agency of the Ministry of Information and Communications, is obliged to advising the Minister of Information and Communication in state-managing and organizing the performance of state management tasks as to telecommunications throughout the country, including the following tasks:a) To participate in the formulation of mechanisms, policies, strategies, planning and legal documents on telecommunications;b) To manage the telecommunication market, the telecommunication business and public-utility telecommunication services and public-utility telecommunication activities, organize the implementation of the provisions of the telecommunication laws;c) To perform some other duties of state management on telecommunications as assigned or delegated by the Minister of Information and Communications.*Market highlights:

Vietnams mobile market stood at an estimated 130 million subscribers in early 2012, for a 144% penetration.

The countrys annual growth rate in mobile subscribers has fallen from its boom year highs, moderating sharply in 2011/2012 to less than 10%.

In the 2007/2011 period the countrys fixed broadband internet market has surged, jumping almost 300% in that time to reach more than 4.5 million by coming into 2012.

Overall fixed broadband penetration remained relatively low, however, at under 5% of population.

Although interest in broadband services in Vietnam had finally picked up, much of the growth in 2011 and 2012 has been in mobile wireless broadband.

Growth in fixed-line subscriber numbers flattened out then, by 2011/2012 had started to decline.Following on from the successful launch of its Vinasat-1 satellite in 2008, Vietnam moved quickly to put a second satellite into orbit, launching Vinasat-2 on schedule in May 2012.**Market highlights:

Vietnams mobile market stood at an estimated 130 million subscribers in early 2012, for a 144% penetration.

The countrys annual growth rate in mobile subscribers has fallen from its boom year highs, moderating sharply in 2011/2012 to less than 10%.

In the 2007/2011 period the countrys fixed broadband internet market has surged, jumping almost 300% in that time to reach more than 4.5 million by coming into 2012.

Overall fixed broadband penetration remained relatively low, however, at under 5% of population.

Although interest in broadband services in Vietnam had finally picked up, much of the growth in 2011 and 2012 has been in mobile wireless broadband.

Growth in fixed-line subscriber numbers flattened out then, by 2011/2012 had started to decline (with some inconsistent figures continuing to come from the regulator).

Following on from the successful launch of its Vinasat-1 satellite in 2008, Vietnam moved quickly to put a second satellite into orbit, launching Vinasat-2 on schedule in May 2012.*-1992: VNPT: The Only Business; DGPT: Policy Maker and Regulator-1995: VNPT independent with DGPT; Establishment of 02 new companies Viettel and Saigon Postel; GSM Technology with Mobifone (BCC between VNPT and COMVIK)- 1997-2000: Regulator:DGPT;Telecom Businesses: VNPT, SPT, Viettel;Internet ISPs:VNPT, SPT, FPT, NetNam.+ Rapid development of the Telecom Market, by 2000 density reach 5%. GSM and CDMA also allowed to be deployed.+ Limited Competition in the mobile market (Mobifone and Vinaphone). SPT enter the market. Viettel started with International VoIP service. Some new players started operation (EVN Telecom, HaNoi Telecom). Internet market (VDC of VNPT and FPT.+ Government shares > 50% in Telecom FBOs. The Policy making and Regulating Function established clearly.- 2002 to now: VietNam enters Bilateral Trade Agreement with US, cooperation within ASEAN, enters WTO (2006) with commitment of opening the Telecom Market to foreign investment. Several Laws and Legal Framework issued.11 FBO (Government Shares > 50%), 90 SBO Internet Businesses (include Private Sector) licensed.+ Fierce Competition in the mobile, leased-line, Internet Market. Fixed Market difficult.

*****The law telecoms and Decree no 25 created fair pro-competitive environment for telecommunications enterprises to invest in. *This Law provides for telecommunications activities, including telecommunications investment and business; public-utility telecommunications; telecommunications management; construction of telecommunications works: rights and obligations of organizations and individuals engaged in telecommunications activities.

*Boosting the sustainable development of the domestic telecom market.The problem in Vietnam is that though there are many enterprises, there is a big gap in the market shares, while the development of the enterprises is not equal, thus making the market develop in an unsustainable way.restructuring measures include creating favourable conditions for mergers and acquisitions, revoking licences and restructuring inefficient companies. Telecommunications companies will be restructured to ensure that there are only three or four healthy companies in the market.- The restructuring must help telecom companies sharpen their competitiveness and operate more efficiently, thereby boosting the sustainable development of the domestic telecom market.- Ensuring the sustainable and harmonious telecommunications development**