Decision No. 32/2006/QD-TTg dated February 07, 2006 of the Prime Minister approving the planning on Vietnam's telecommunications and internet development up to 2010

DECISION

APPROVING THE PLANNING ON VIETNAM'S TELECOMMUNICATIONS AND INTERNET DEVELOPMENT UP TO 2010

THE PRIME MINISTER

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

Pursuant to the May 25, 2002 Ordinance on Post and Telecommunications;

Pursuant to the Government's Decree No. 160/2004/ND-CP of September 3, 2004, detailing the implementation of a number of articles of the Ordinance on Post and Telecommunications;

Pursuant to the Government's Decree No. 55/2001/ND-CP of August 23, 2001, on the management, provision and use of Internet services;

Pursuant to the Government's Decree No. 90/2002/ND-CP of November 11, 2002, defining the functions, tasks, powers and organizational structure of the Ministry of Post and Telematics;

Pursuant to the Prime Minister's Decision No. 158/2001/QD-TTg of October 18, 2001, approving the strategy on Vietnam's post and telecommunication development up to 2010 and orientations towards 2020;

Pursuant to the Prime Minister's Decision No. 246/2005/QD-TTg of October 6, 2005, approving the strategy on development of Vietnam's information and communication technology up to 2010 and orientations towards 2020;

At the proposal of the Minister of Post and Telematics and the Minister of Planning and Investment,

DECIDES:

Article 1.- To approve the Planning on Vietnam's telecommunications and Internet development up to 2010, with the following principal contents:

I. OBJECTIVES

1. To build and develop nationwide telecommunications infrastructure using modern technologies up to regional standards, which has a large capacity and high quality, provides various services and operates effectively.

2. Telecommunications and Internet shall become a spearhead industry increasingly contributing to GDP growth and creating many jobs for the society. The industry's growth rate shall be 1.5 ' 2 times of the average growth rate of the economy; by 2010, the total turnover of telecommunications and Internet services shall reach around VND 55,000 billion (USD 3.5 billion).

3. To provide quality telecommunications and Internet services at reasonable charges to satisfy diverse demands of service users.

4. To ensure information safety and security for the application and development of information and communication technology in all political, economic and social domains.

5. To speed up telecommunications and Internet universalization nationwide, narrow the gap in service use between regions and areas, facilitate socio-economic development while contributing to ensuring security and national defense.

II. TARGETS

1. Service development targets:

a/ To provide the society and consumers with modern, diversified and abundant telecommunications and Internet services at prices equal to or lower than the average prices in regional countries in order to meet the needs for information in service of economic and social activities, security and national defense. To universalize better and better telecommunications and Internet services nationwide. By 2010, the telephone density shall be about 32-42 sets/100 persons (of which the fixed telephone density shall be 14-16 sets/100 persons); the Internet subscription density shall be 8-12 subscriptions/100 persons (of which broadband subscriptions shall account for 30%); Internet users shall account for 25-35% of the population.

b/ To ensure that Internet access shall be available to a majority of officials, public employees, teachers, physicians, university and college students, and intermediate vocational and upper secondary pupils.

c/ To speed up the universalization of fixed telephone and Internet services in all communes throughout the country. By 2010, 100% of communes shall have public phone booths and 70% of communes shall have public Internet access points, 100% of districts and most communes in key economic regions shall be provided with broadband Internet services.

d/ To ensure that 100% of users shall get free access to compulsory services: fire brigade calls, ambulance calls and emergency calls on security and social order. To maintain, expand and ensure communication on search, rescue and natural disaster prevention and combat.

2. Network development targets:

a/ To develop international and inter-provincial large-capacity and highly-reliable telecommunications networks connected in different directions on the basis of combining marine optic cables, optic cables on land and satellite communication systems, thus meeting the requirements of broadband service provision.

b/ To develop optic cable networks to all districts throughout the country. For important areas, to build loop optic cable networks for higher information safety.

c/ To expand mobile phone coverage to all districts throughout the country, most communes in key economic regions and important national highways and provincial roads.

d/ To ensure that all ministries, branches, state administrative agencies, and provincial- and district-level administrations shall be connected with the broadband Internet and the Government's wide-area network; 100% of research institutes, universities, colleges, intermediate vocational schools and upper secondary schools shall have access to the broadband Internet; and more than 90% of lower secondary schools and hospitals shall have Internet access.

III. DEVELOPMENT ORIENTATIONS

1. Market development orientations:

a/ To create a fair and healthy competitive market so as to facilitate telecommunications and Internet enterprises' cooperation and development. By 2010, new enterprises (outside the Vietnam Post and Telecommunications Group) shall take 40-45% of the market share for some important services such as international telephone, channel lease, mobile communication and broadband Internet.

b/ To create conditions for all economic sectors to make investment in the provision of telecommunications and Internet services, especially in the re-sale of services and provision of added-value services and Internet services.

c/ Vietnamese telecommunications and Internet service enterprises shall efficiently exploit the domestic market, then expand their business and investment activities to overseas markets.

2. Network development orientations:

a/ To build and develop an advanced and modern telecommunications and Internet infrastructure which operates in an efficient, safe and reliable manner and extends to all remote, deep-lying and border areas and islands.

b/ To step by step switch to develop next-generation networks (NGN) suitable to specific conditions of each enterprise, aiming to provide multiple services on a unified telecommunications infrastructure.

c/ To accelerate the expansion of optic cable networks to rural communes and develop optic cable networks in population quarters and big buildings in urban centers.

d/ To quickly perfect peripheral networks by using more optic cables and increasing the ratio of underground cables in order to improve service quality and urban landscape.

e/ To boost the development of broadband access networks so as to ensure the development of online applications such as e-government, e-commerce and distance training and medical examination and treatment.

f/ To boost the development of mobile telecommunications networks, strive to develop mobile phone systems of the 3rd or subsequent generations.

3. Service development orientations:

a/ To prioritize the development of new services along the trend of convergence between radio, television, information and telecommunications technologies and between fixed and mobile telecommunications services.

b/ To attach importance to developing mobile services, broadband services and added-value services on the basis of infrastructure already built.

c/ To quickly provide Internet application services such as e-government, e-commerce, multimedia communication, entertainment, etc.

d/ To create favorable conditions for the development of transmission and broadcasting services, channel leasing services and virtual private network (VPN) services so as to exploit to the utmost the capacity of public telecommunications networks and ensure their efficient operation.

IV. SOLUTIONS

1. Perfecting the legal environment and raising the capacity of state management over telecommunications and Internet:

a/ Perfecting the legal environment

- To perfect the system of legal documents on telecommunications and Internet, aiming to bring into full play the domestic strengths and create a fair and healthy competitive environment.

- To study the formulation and promulgation of the Telecommunications Law.

- To formulate and promulgate regulations on information safety and security.

- To formulate and promulgate documents guiding the provisions of the Law on E-Transactions and the Law on Information Technology concerning telecommunications and Internet.

b/ Raising the state management effect and efficiency:

- To continue perfecting the state management apparatus in charge of telecommunications and Internet from the central to local level, focusing on the formation, perfection and enhancement of capacity of specialized management agencies and units in charge of telecommunications, radio frequencies, Internet and information safety and security.

- To carry out programs on training and development of central and local human resources to perform state management over telecommunications and Internet in conformity with competition and integration requirements. To prioritize programs on training of chief information officers (CIO) and senior telecommunications and Internet experts.

- To ensure the implementation schedule and quality of programs and investment projects so as to perfect material foundations and working conditions and strengthen capacity of central and local state management agencies in charge of telecommunications and Internet in accordance with their assigned functions and tasks.

- To carry out the standardization of the working process (ISO), accelerate the application of information technology to state management of telecommunications and Internet.

2. Formulating mechanisms and policies and concentrating on law enforcement in order to bring into full play the domestic strengths and boost competition in the domain of telecommunications and Internet:

a/ Licensing the provision of telecommunications and Internet services:

- To determine the number of enterprises providing network infrastructure services on the principles of developing a sound market and creating conditions for enterprises to accumulate capital and maintain and expand their business; to make use of the existing telecommunications and Internet infrastructure and raise the efficiency of state investment capital; to use telecommunications resources and national resources in an efficient and economical manner.

- To adopt proper licensing mechanisms and policies so as to encourage enterprises to re-sell services, provide added-value services and Internet services on the basis of network infrastructure already built; to develop local network infrastructure so as to provide broadband access services and computer network connection services; to make use of the existing infrastructure (cable television, electric grids, etc.) in order to provide telecommunications and Internet services in combination with other services.

b/ Prices, charges and fees:

- To readjust telecommunications and Internet service prices on the basis of costs and the demand-supply relationship on the market. To step by step adjust service prices which are currently lower than costs in order to ensure business benefits for enterprises in the context of competition and international integration.

- To step by step adjust charges for connection and channel lease between enterprises on the basis of costs. To clearly determine in connection charges the proportion of contributions for the provision of public telecommunications services.

- To respect telecommunications and Internet enterprises' rights to set service prices by themselves. To avoid intervention through administrative means in the adjustment of market prices of services actually opened for competition. The State shall only decide on the prices of public services and market-control services that affect other enterprises' entry into the market.

- To step by step renovate the system of charges and fees for the grant of permits for the use of telecommunications and Internet resources (frequencies, number budget, domain names and Internet addresses) on the principles of ensuring the efficient and economical use of such resources while not causing excessive increases in enterprises' production and business costs.

c/ Network and service standards and quality

- To step up the formulation of standards in the domain of telecommunications and Internet in conformity with Vietnamese law, international practice and regulations.

- To enhance the management over the quality of networks and services of telecommunications and Internet through the publication of their quality based on the compulsory standards or standards voluntarily applied by telecommunications and Internet enterprises.

- To enhance the management over the quality of terminal equipment, radio communication equipment and other equipment which may cause interference to radio communication through standard conformity publication; standard conformity certification; mutual recognition agreements (MRA); and electromagnetic compatibility (EMC) management.

d/ Connection and common use of telecommunications and Internet infrastructure:

- To consider and permit the application of specific investment and bidding mechanisms in case of emergency so as to ensure the capacity of network connection between enterprises.

- To formulate and promulgate regulations on the connection of public telecommunications networks so as to facilitate the signing and implementation of connection agreements between enterprises.

- To formulate and promulgate criteria for network capacity evaluation and various economic and financial mechanisms to facilitate the connection and settlement of disputes between enterprises.

- For some services which are not yet highly competitive, to consider the application of the asymmetric connection management mechanism in order to boost competition and create conditions for new enterprises to enter in the market.

- To encourage the common use of telecommunications and Internet infrastructure including: sites for installation of connection devices, switching devices, cable pipes, cable tanks, cables, cable fibers, antenna masts, indoor auxiliary equipment and other facilities.

- To create favorable conditions for telecommunications enterprises to lease infrastructure of other industries, such as television broadcasting or power industry, to set up telecommunications and Internet service provision networks.

- To step by step study and consider the application of a number of special mechanisms in some geographical areas and under certain conditions: roaming in service of public, security and defense tasks and local loop unbundling, aiming to boost competition and create convenience for service users.

e/ Telecommunications and Internet resources:

- To elaborate plannings on telecommunications and Internet resources on the basis of ensuring investment efficiency and economical use.

- To prioritize the planning and allocation of resources for new technologies and services such as next-generation Internet, new-generation mobile communication, wireless broadband access, etc.

- To study and experimentally use the system of new resources such as IPv6, ENUM, etc. so as to meet the requirements for fast development of networks and services.

- To step by step study and consider the application of the mechanisms of number portability and carrier pre-selection in domestic and international long-distance services in order to boost competition and create convenience for service users.

f/ Assurance of information safety and security:

- To formulate and perfect regulations on assurance of information safety and security on telecommunications and Internet networks.

- To formulate, perfect and raise the capacity of the system to cope with and overcome computer breakdowns and prevent and combat cyber crimes.

- To apply encryption technologies and solutions so as to increase the reliability and safety of transactions on telecommunications and Internet networks.

g/ Enforcement of laws:

- To enhance inspection and examination of telecommunications and Internet business activities, especially those related to network connection, service charges and quality.

- To simultaneously apply economic, technical and professional methods and, at the same time, enhance inter-branch coordination so as to effectively prevent illegal business activities in the domain of telecommunications and Internet.

- To strictly handle organizations and individuals committing violations in the domain of telecommunications and Internet according to current regulations.

3. Raising enterprises' competitiveness to meet international economic integration requirements:

a/ Renewing enterprises' organization and production and business management

To establish strong telecommunications conglomerates and corporations which have modern technologies and managerial methods, are highly specialized, and deal in many production and business lines but focus mainly on telecommunications and Internet business.

Telecommunications and Internet enterprises shall enjoy autonomy in their business and do independent cost-accounting; strive to abolish the mechanism of cross-offsetting of losses between telecommunications and Internet services.

- To step by step make a clear distinction between public tasks and business activities performed by enterprises by adjusting connection charges and setting up a public telecommunications service fund.

- To speed up the equitization of enterprises according to approved plans, in the first stage, to concentrate efforts on those providing added-value services, Internet services and mobile communication services.

- To encourage and create conditions for equitized telecommunications and Internet enterprises to be listed on domestic and overseas securities markets.

b/ International cooperation:

- To continue raising the effectiveness of existing international cooperation projects.

- To seek opportunities and apply new forms of cooperation in conformity with Vietnam's investment law and international commitments.

- To find out overseas markets for investment and business activities in conformity with international law and practice.

c/ Mobilization of investment capital:

- To reform enterprises, adjust the production and investment structure and create conditions for enterprises to operate in an efficient manner and accumulate more capital from internal sources for re-investment in development.

- To further attract investment capital from domestic economic sectors, including credit capital, project bonds, own capital, equities and capital mobilized through securities markets, for investment in telecommunications and Internet. To attach importance to the source of capital mobilized through the equitization of enterprises and re-sale of services so as to create conditions for people to invest in telecommunication and Internet development.

- To further attract investment capital in various forms of foreign direct investment (FDI) for telecommunications and Internet development.

- To use official development assistance (ODA) capital for telecommunications and Internet development in rural, mountainous, deep-lying areas and islands and for other public tasks.

- Total investment capital for key projects in the 2006-2010 period is estimated at VND 100,500 billion (see the Appendix enclosed herewith).

d/ Human resource development

- To apply special treatment policies for the contingent of talented managerial, economic and technical specialists so as to meet the requirements of international integration and competition in the domain of telecommunications and Internet.

- To adjust the labor structure in the telecommunication and Internet sector in the direction of further hiring services and labor outside the sector in order to make the fullest use of social labor force and raise the sector's productivity.

e/ Science and technology development

- To concentrate on research, development and transfer of technologies, thus contributing to renewing the organization of production and business, raising the productivity and competitiveness of telecommunications and Internet enterprises.

- To set up science and technology funds in support of research, production and experimentation of new technologies.

- To research and experimentally apply advanced technologies in the telecommunications and Internet domain in order to take a shortcut to development and raise the competitiveness of Vietnamese enterprises.

4. To renew the mode of provision of public telecommunications services in a competitive environment and the process of international economic integration

- To actively put the public telecommunications service fund into operation with a view to making a clear distinction between business activities and public tasks of enterprises in the period of competition and international economic integration.

- To formulate and effectively implement a program on provision of public telecommunication services in the 2006-2010 period so as to gradually increase the degree of universalization of such services and narrow the gap in telecommunications and Internet development between regions and areas throughout the country.

- To set up a unit specialized in providing telecommunications and Internet services to Party and state agencies in order to continue raising quality of services and security of information on telecommunications networks exclusively used by the Party and State and, at the same time, create conditions for enterprises to concentrate on business activities, raise their competitiveness and succeed in integration.

Article 2.- Management and organization of the implementation of the Planning

1. The Ministry of Post and Telematics:

- To be in charge of organizing and monitoring the implementation of the Planning. Based on the country's economic development, to submit to the Prime Minister the Planning's contents which must be updated or adjusted to suit the practical situation.

- To formulate and submit to the Government or promulgate according to its competence mechanisms and policies for the successful implementation of the Planning on Vietnam's telecommunications and Internet development up to 2010, including:

+ Documents guiding the provisions of the Law on E-Transactions, the Law on Information Technology and the Ordinance on Post and Telecommunications concerning telecommunications and Internet.

+ The Telecommunications Law;

+ A program on public-utility telecommunications services in the 2006-2010 period, to be submitted to the Prime Minister for promulgation.

+ A new price management mechanism, to be submitted to the Prime Minister for promulgation in replacement of the Prime Minister's Decision No. 217/2003/QD-TTg of October 27, 2003, on the management of post and telecommunications service charges.

- To study and perfect the organizational models of agencies and units performing the specialized state management over telecommunications, radio frequencies, Internet and information safety and security so as to meet the requirements of the period of competition and integration.

- To direct the renovation of production and business activities of telecommunication enterprises by forming strong and highly specialized conglomerates and corporations which shall enjoy business autonomy and independent cost-accounting. To direct the formation of the Vietnam Post and Telecommunications Group and its subsidiary companies under the Prime Minister's Decision No. 58/2005/QD-TTg of March 23, 2005.

- Based on the market development in each period, to propose the Prime Minister to decide on the grant of permits to enterprises providing telecommunications and Internet network infrastructure.

- To formulate and perfect an emergency investment mechanism to serve connection of public telecommunication networks.

2. The Ministries of Finance; Planning and Investment; Home Affairs; Public Security; and Transport:

- The Ministry of Finance shall coordinate with the Ministry of Post and Telematics in formulating a new price management mechanism and directing the equitization of telecommunications and Internet enterprises; promulgate a financial regulation applicable to the public telecommunications service fund; ensure the allocation of budget capital for the provision of telecommunications and Internet services to Party and state agencies; and promulgate financial mechanisms applicable to the provision of telecommunications and Internet services for defense and security purposes.

- The Ministry of Planning and Investment shall coordinate with the Ministry of Post and Telematics in executing key investment projects stated in the Appendix; and join in formulating an emergency investment and bidding mechanism to serve connection of public telecommunications networks.

- The Ministry of Home Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Post and Telematics in, continuing to perfect the state management apparatus in charge of telecommunications and Internet, and making a plan on enterprise renewal.

- The Ministry of Public Security shall assume the prime responsibility for, and coordinate with the Ministry of Post and Telematics in, promulgating a regulation on network safety and information security in the domain of telecommunications and Internet.

- The Ministry of Transport shall assume the prime responsibility for, and coordinate with the Ministry of Post and Telematics in, promulgating regulations on the building of telecommunications transmission lines along roads, bridges, sewers and pavements in order to speed up the execution of telecommunications and Internet projects.

3. Ministries, branches, provinces and centrally-run cities:

- Ministries, branches and localities shall, on the basis of their assigned functions and tasks and their specific characteristics, have to coordinate with the Ministry of Post and Telematics as well as telecommunications and Internet enterprises in implementing their branch development plannings.

- Provincial/municipal People's Committees shall direct the formulation of local post and telecommunications plannings and organize the implementation of this Planning in their localities.

4. Telecommunications and Internet enterprises:

- To draw up development plans in conformity with the Planning on Vietnam's telecommunications and Internet development up to 2010.

- To renew production and business activities under direction of the Ministry of Post and Telematics and concerned ministries and branches.

- To conduct equitization according to approved plans.

Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 4.- Ministers, heads of ministerial-level agencies and Government-attached agencies, presidents of provincial/municipal People's Committees, chairmen of the Management Boards, general directors and directors of telecommuni-cations and Internet enterprises, and heads of concerned agencies shall have to implement this Decision.

APPENDIX

LIST OF KEY PROJECTS ON TELECOMMUNICATIONS AND INTERNET DEVELOPMENT IN THE 2006-2010 PERIOD
(Issued together with the Prime Minister’s Decision No. 32/2006/QD-TTg of February 7, 2006)