Decision No. 1643/QD-TTg dated September 21, 2011 of the Prime Minister approving the Program on provision of utility telecommunications services during 2011-2015

THE PRIME MINISTER

Decision No. 1643/QD-TTg of September 21, 2011, approving the Program on provision of utility telecommunications services during 2011-2015

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

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 a number of articles of Telecommunications Law;

Pursuant to the Government’s Decree No. 31/2005/ND-CP of March 11, 2005, on production and provision of utility products and services;

At the proposal of the Minister of Information and Communications,

DECIDES:

Article 1. To approve the Program on provision of utility telecommunications services during 2011-2015, with the following principal contents:

I. OBJECTIVES

1. General objectives:

Based on achieved results of the Program on provision of utility telecommunications services through 2010, to further expand the universalization of telecommunications and Internet services to every citizen and household nationwide; to develop broadband telecommunications infrastructure to serve the regional universalization of utility telecommunications services in order to narrow the gap in use of telecommunications and Internet services among regions nationwide, contributing to socio-economic development and assuring security and defense.

2. Specific objectives:

By 2015:

a/ All communes will be connected to multi-service broadband transmission networks;

b/ The number of household fixed-line telephone subcribers in extreme difficulty-hit communes will increase by 1 million;

c/ The rate of household Internet subscribers in communes of districts with the current rate of under 2% will rise to over 5%;

d/ Over 50% of communes in 69 poor districts will have public Internet access points;

e/ Free-of-charge access will be offered to users of mandatory telecommunications services;

f/ Achieved results of the Program on provision of utility telecommunications services through 2010 under the Prime Minister’s Decision No. 74/2006/QD-TTg of April 7, 2006, will be sustained.

II. TASKS

1. To provide partial financial support for projects to develop telecommunications infrastructure in areas eligible for utility telecommunications services, including:

a/ Support for development of telecommunications infrastructure in communes without broadband transmission infrastructure and offshore islands;

b/ Support for upgrading and expansion of telecommunications infrastructure in communes of 69 poor districts and offshore islands;

c/ Support for establishment of 500 public Internet access points in communes of 69 poor districts and offshore islands;

d/ Support for communal post and culture points in communes covered by the Government’s Program 135, phase II, and border-guard stations to improve their telecommunications service quality and capacity.

2. To provide partial financial support for utility telecommunications service users, including:

a/ Support for new household fixed-line telephone subscribers in communes covered by the Government’s Program 135, phase II, to pay their telephone bills;

b/ Support for new household Internet subscribers in communes of districts with a household Internet subscription rate of under 2% to procure computers for Internet access and pay their Internet bills;

c/ Support for procurement and installation of HF radio transmitters/receivers for fishing ships;

d/ Support for fixed-line telephone subcribers in region 3 covered by the Program on provision of utility telecommunications services under the Prime Minister’s Decision No. 74/2006/QD-TTg of April 7, 2006, to pay their telephone bills through the end of 2013.

3. To provide partial financial support for enterprises to maintain the provision of utility telecommunications services, including:

a/ Support for maintaining public Internet access points newly established in communes of 69 poor districts, offshore islands and border-guard stations;

b/ Support for maintaining newly developed household fixed-line telephone subscribers in communes covered by the Government’s Program 135, phase II;

c/ Support for maintaining newly developed household Internet subscribers in communes of districts with a household Internet subscription rate of under 2%;

d/ Support for maintaining through the end of 2013 public telecommunications service access points with serving staffs established under the Program on provision of utility telecommunications services through 2010 under the Prime Minister’s Decision No. 74/2006/QD-TTg of April 7, 2006.

4. To provide partial financial support for enterprises to maintain and administer networks and devices used for provision of mandatory telecommunications services.

5. To provide partial financial support for research and development activities aiming to produce telecommunications terminal equipment to serve the provision of utility telecommunications services.

6. To grant preferential loans for projects to upgrade, expand and develop telecommunications infrastructure in areas eligible for utility telecommunications services.

III. LIST OF UTILITY TELECOMMUNICATIONS SERVICES

Utility telecommunications services include universal services and mandatory services:

1. Universal telecommunications services:

a/ Local fixed-line telephone services;

b/ Internet access services with a minimum speed of 256 Kb/s.

2. Mandatory telecommunications services:

a/ Telecommunications services for search, rescue, and natural disaster prevention and control under regulations of competent authorities.

b/ Emergency call services for medical emergency, social security and order incidents, and fire fighting.

c/ Directory enquiry services for fixed-line telephone numbers;

d/ Telecommunications services for the State’s urgent activities under regulations of competent authorities.

IV. SCOPE AND SUBJECTS

1. Areas eligible for utility telecommunications services:

a/ Areas eligible for utility telecommunications services shall be determined according to commune-level administrative units in geographical areas corresponding to each task of the Program specified in Part II, Article 1 of this Circular, including extreme difficulty-hit communes covered by Program 135, phase II, as specified by the Government; communes in 69 poor districts specified in the Government’s Resolution No. 30a/2008/NQ-CP of December 27, 2008, and the Prime Minister’s Decision No. 615/QD-TTg of April 25, 2011; communes in 41 offshore islands; communes in districts with a household Internet subscription rate of under 2%; and communes without broadband transmission infrastructure according to the results of the June 1, 2010 statistical survey;

b/ All localities nationwide will be entitled to support for the provision of mandatory telecommunications services.

2. Subjects eligible for utility telecommunications services:

a/ Users of telecommunications services at public telecommunications service assess points in communes covered by the Government’s Program 135, phase II, communes in 69 poor districts, offshore islands and border-guard stations;

b/ Household fixed-line telephone subcribers in extreme difficulty-hit communes covered by the Government’s Program 135, phase II;

c/ Household Internet subcribers in districts with a household Internet subscription rate of under 2%;

d/ Users of HF radio transmitters/receivers installed in fishing ships;

e/ Fixed-line telephone subscribers in region 3 of the Program on provision of utility telecommunications services under the Prime Minister’s Decision No. 74/2006/QD-TTg of April 7, 2006.

V. FINANCE

1. Funding sources of the Program:

a/ Funds from telecommunications enterprises: To be collected at the rate of 2% of the total turnover of mobile telephone services;

b/ Funds carried forward from the Program on provision of utility telecommunications services through 2010 under the Prime Minister’s Decision No. 74/2006/QD-TTg of April 7, 2006;

c/ Charter capital of the Vietnam Utility Telecommunications Service Fund.

2. Use of funding sources:

a/ Funds for the Program implementation is estimated at around VND 7,000 billion (excluding funds for provision of preferential loans), of which:

- Funds for provision of support for telecommunications infrastructure development: 21%.

- Funds for provision of support for utility telecommunications service users: 34.5%.

- Funds for provision of support for enterprises to maintain utility telecommunications services: 29.5%.

- Funds for provision of support for other tasks: 10%.

- Other funds and contingency funds: 5%.

b/ Funds for grant of preferential loans come from charter capital of the Vietnam Utility Telecommunications Service Fund.

3. Specific financial supports to be provided under the Program:

To finance the performance of the tasks specified in Part II, Article 1 of this Decision.

VI. MANAGEMENT SOLUTIONS AND MECHANISMS

1. Identifying the list of services, areas and beneficiaries of the Program:

The list of utility telecommunications services, areas eligible for utility telecommunications services and support levels for each beneficiary and service shall be synchronously identified and publicized on the basis of the Program’s objectives and tasks.

2. Planning and phasing the Program implementation:

The overall plan on implementation of the Program shall be divided into annual plans or project implementation plans according to specific objectives of the Program.

3. Mode of implementation of the Program:

a/ Support for development of telecommunications infrastructure and provision of utility telecommunications services shall be provided as planned under projects on or orders for service provision;

b/ Enterprises shall be assigned to implement projects on or orders for service provision through order placement or bidding, of which the mode of bidding is preferable;

c/ Support from the funding source of the Vietnam Utility Telecommunications Service Fund for telecommunications infrastructure development projects from shall be provided through order placement by the State or bidding. Project-implementing enterprises shall receive and manage assets formed from investment according to the law on investment, management, exploitation and transfer of assets and capital belonging to the state budget.

4. Managing quality and charge rates of services provided under projects and orders:

Service provision projects and orders must be approved with contents on types of service, service quality and charge rates and support levels for management and control.

5. Adjusting the rate of funds raised from telecommunications enterprises:

Based on funding demands and amounts actually collected during the Program implementation, the Ministry of Information and Communications shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, adjusting the rate of funds raised from telecommunications enterprises to suit reality.

6. Combining and integrating the Program on provision of utility telecommunications services with other state target programs:

The Ministry of Information and Communications shall coordinate with ministries, sectors and localities in implementing other projects having the same objectives, tasks and locations so as to avoid wasteful overlap regarding human and financial resources. Utility telecommunications projects must be implemented synchronously with other infrastructure conditions so as to bring into full play their utilities.

7. Complying with reporting regimes and supervising, inspecting and evaluating the Program implementation according to the State’s regulations.

8. Intensifying public information on state policies on utility telecommunications among people, businesses and the society so as to assure equality and transparency and creating conditions for supervision of the provision of utility telecommunications services.

Article 2. Organization of implementation

1. The Ministry of Information and Communications shall:

a/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, guiding the Program implementation;

b/ Promulgate regulations on the quality, charge rates, beneficiaries and scope of utility telecommunications services and guide the list of utility telecommunications services;

c/ Approve the plan on the Program implementation;

d/ Specify the mode of support provision and assume the prime responsibility for, and coordinate with the Ministry of Finance in, approving support levels for the implementation of the Program’s tasks according to law;

e/ Approve telecommunications infrastructure development and utility telecommunications service provision projects;

f/ Assume the prime responsibility for, and coordinate with the Ministry of Finance in, reporting to the Prime Minister adjustments to the rate of funds raised from telecommunications enterprises to suit the Program implementation in reality;

g/ Stipulate the reporting regime applicable to the Program implementation; assume the prime responsibility for, and coordinate with related ministries and sectors in, inspecting, supervising and evaluating the implementation results of the Program for reporting to the Prime Minister;

h/ Direct the review and evaluation of the Program upon its completion, and elaborate a program on provision of utility telecommunications services during 2016-2020.

2. The Ministry of Finance shall:

a/ Assume the prime responsibility for, and coordinate with the Ministry of Information and Communications in, promulgating regulations on accounting, collection and remittance of contributions to the Vietnam Utility Telecommunications Service Fund, and the regulation on financial management of the Vietnam Utility Telecommunications Service Fund;

b/ Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Ministry of Information and Communications in, guiding the management and transfer of assets formed from the Program’s support funds;

c/ Guide contents related to tax policies applicable to the utility telecommunications sector;

d/ Coordinate with the Ministry of Information and Communications in providing support levels for performance of tasks of the Program;

e/ Coordinate with the Ministry of Information and Communications in reporting to the Prime Minister the adjustment of the rate of funds raised from telecommunications enterprises so as to suit the Program implementation in reality;

f/ Coordinate with the Ministry of Information and Communications in supervising and inspecting the observance of regulations on financial management applicable to the Program and evaluating the Program’s effectiveness.

3. The Ministry of Planning and Investment shall:

a/ Coordinate with the Ministry of Information and Communications in guiding the provision of investment support for telecommunications infrastructure development projects under the Program;

b/ Coordinate with the Ministry of Finance in guiding the management and transfer of assets formed from the Program’s support funds;

c/ Coordinate with the Ministry of Information and Communications in supervising and inspecting the observance of investment management regulations applicable to the Program and in evaluating the Program’s effectiveness.

4. Provincial-level People’s Committees shall:

a/ Coordinate with the Ministry of Information and Communications and the Vietnam Utility Telecommunications Service Fund in elaborating plans on provision of utility telecommunications services in their respective localities;

b/ Manage and implement specific contents of the Program under the guidance of the Ministry of Information and Communications; inspect and handle violations in the provision of utility telecommunications services in their respective localities;

c/ Direct provincial-level Information and Communications Departments in  coordinating with the Vietnam Utility Telecommunications Service Fund in managing utility telecommunications service provision projects in their respective localities.

5. The Vietnam Utility Telecommunications Service Fund shall:

a/ Assume the prime responsibility for, and coordinate with localities and enterprises in, elaborating plans on the Program implementation for submission to the Minister of Information and Communications for approval;

b/ Organize the Program implementation on the basis of approved plans and law;

c/ Coordinate with localities and enterprises in providing supports for the performance of tasks of the Program;

d/ Receive and manage funds contributed by telecommunications enterprises for the Program implementation according to law;

e/ Conduct public information on state policies on utility telecommunications among people, businesses and the society.

6. Telecommunications businesses shall:

a/ Be entitled to equal access to information on, and participate in, bidding for utility telecommunications service provision plans and projects under the Program; and implement utility telecommunications service provision plans and projects under the Ministry of Information and Communications’ orders;

b/ Abide by regulations in provision of utility telecommunications services;

c/ Perform the obligation to make financial contributions for utility telecommunications according to law;

d/ Use properly and efficiently capital from the Vietnam Utility Telecommunications Service Fund for the implementation of plans and projects on provision of utility telecommunications services.

Article 3. This Decision takes effect on the date of its signing.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decision.-

For the Prime Minister
Deputy Prime Minister
NGUYEN THIEN NHAN