Circular No. 47/2017/TT-BTTTT dated December 29, 2017 of the Ministry of Information and Communications on prescribing sales promotion limits for land mobile services

CIRCULAR

Prescribing sales promotion limits for land mobile services[1]

Pursuant to the June 14, 2005 Commercial Law;

Pursuant to the November 23, 2009 Telecommunications Law;

Pursuant to the Government’s Decree No. 25/2011/ND-CP of April 6, 2011, detailing and guiding the implementation of a number of articles of the Telecommunications Law; and Decree No. 81/2016/ND-CP of July 1, 2016, amending and supplementing a number of articles of the Government’s Decree No. 25/2011/ND-CP of April 6, 2011, detailing and guiding the implementation of a number of articles of the Telecommunications Law, and Decree No. 49/2017/ND-CP of April 24, 2017, amending and supplementing Article 15 of the Government’s Decree No. 25/2011/ND-CP of April 6, 2011, detailing and guiding the implementation of a number of articles of the Telecommunications Law, and Article 30 of the Government’s Decree No. 174/2013/ND-CP of November 13, 2013, on sanctioning of administrative violations in the fields of post, telecommunications, information technology and radio frequency;

Pursuant to the Government’s Decree No. 17/2017/ND-CP of February 17, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Information and Communications;

At the proposal of the Director of the Vietnam Telecommunications Authority,

The Minister of Information and Communications promulgates the Circular prescribing sales promotion limits for land mobile services.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular prescribes the total maximum value of services and goods for sales promotion under a sales promotion program and the maximum material value for sales promotion per unit of land mobile service (below referred to as mobile phone service), and telecommunications goods exclusively used for mobile phone services.

Article 2.Subjects of application

Telecommunications enterprises licensed to provide land mobile services (below referred to as mobile phone enterprises).

Article 3.Maximum total value of services and goods used for sales promotion under a sales promotion program for mobile phone services and telecommunications goods exclusively used for mobile phone services

1. The total maximum value used for sales promotion under a sales promotion program for prepaid mobile phone subscribers must not exceed 20% of the total value of promoted mobile phone services or telecommunications goods exclusively used for mobile phone services.

2. The total maximum value used for sales promotion under a sales promotion program for postpaid mobile phone subscribers must not exceed 50% of the total value of promoted mobile phone services or telecommunications goods exclusively used for mobile phone services.

3. The provisions of Clauses 1 and 2 of this Article shall not be applied to sales promotion in the form of provision of sample mobile phone services and offer of telecommunications goods exclusively used for sample mobile phone services for free trial use by customers.

Article 4.Maximum material value used for sales promotion per unit of mobile phone service and telecommunications goods exclusively for mobile phone services

1. The material value used for sales promotion per unit of mobile phone service or telecommunications goods exclusively used for mobile phone services of prepaid subscribers must not exceed 20% of the price of such unit of service or goods before sales promotion.

2. The material value used for sales promotion per unit of mobile phone service or telecommunications goods exclusively used for mobile phone services of postpaid subscribers must not exceed 50% of the price of such unit of service or goods before sales promotion.

3. The provisions of Clauses 1 and 2 of this Article shall not be applied to the following cases:

a/ Providing sample mobile phone services and offering telecommunications goods exclusively used for sample mobile phone services for free trial use by customers;

b/ Providing mobile phone services and selling telecommunications goods exclusively used for mobile phone services enclosed with contest papers to be filled out by customers in order to select prize winners according to announced rules and prizes;

c/ Providing mobile phone services and selling goods exclusively used for mobile phone services enclosed with participation in promotional programs of chance;

d/ Organizing programs for frequent customers of mobile phone services.

Article 5.Organization of programs for frequent customers of mobile phone services

1. Frequent customers of mobile phone services include:

a/ Postpaid subscribers, including also postpaid subscribers switched from prepaid ones during the time of implementation of a program for frequent customers;

b/ Prepaid subscribers who have used the service for at least 1 (one) consecutive year and paid a charge of at least VND 1,000,000 (one million Vietnam dong) to the mobile phone enterprise.

2. When organizing a charge discount program for frequent customers, a mobile phone enterprise shall also comply with provisions on charge discount programs.

Chapter II

ORGANIZATION OF IMPLEMENTATION

Article 6.Effect

This Circular takes effect on March 1, 2018, and replaces the provisions on sales promotion limits in Clauses 9 and 10, Article 5; Clauses 3, 4, 6 and 7, Article 8; Clause 2, Article 9; and Article 10, of the Minister of Information and Communications’ Circular No. 11/2010/TT-BTTTT of May 14, 2010, prescribing sales promotion for mobile phone services.

Article 7.Implementation provisions

1. The Chief of the Office, the Director of the Vietnam Telecommunications Authority and heads of agencies and units under the Ministry, directors general or directors of mobile phone enterprises and related organizations and individuals shall implement this Circular.

2. Any problems arising in the course of implementation should be reported to the Ministry of Information and Communications (the Vietnam Telecommunications Authority) for consideration and settlement.-

Minister of Information and Communications
TRUONG MINH TUAN