Decision No. 32/2012/QD-TTg dated July 27, 2012 of the Prime Minister approving the plan for developing national telecommunications until 2020

DECISION

APPROVING THE PLAN FOR DEVELOPING NATIONAL TELECOMMUNICATIONS UNTIL 2020

Pursuant to the Law on Government organization on December 25, 2001;

Pursuant tothe Law on telecommunications on November 23, 2009;

Pursuant to the Law onRadio frequencyon November 23, 2009;

Pursuant to the Government s Decree No.25/2011/NĐ-CPon April 06, 2011 detailing and guiding the implementation of a number of articles of the Law on telecommunications;

At the proposal of the Minister of Information and Communications;

The Prime Minister issues the Decisionsapproving thePlan for developingnationaltelecommunications until 2020,

Article 1.Approving thePlan for developingnationaltelecommunications until 2020:

I. TARGETS

1. Building and developing the modern and safe telecommunications infrastructure with high capacity, high speed, and able to reach remote areas, bordering areas, islands or impoverish areas, contributing in the National defense and security and improving people’s life.

2. Providing quality, competitive and affordable telecommunications services to satisfy diverse demands of services users. Developing the telecommunications application services using the built telecommunications infrastructure to utilize the convergence of technology and services.

3. Sustainably developing the telecommunications market, ensuring a healthy competition by strictly control the business activities of telecommunications enterprises under the law provisions on competition. Utilizing the internal resources and supporting the economic sectors in participating in the telecommunications development.

4. Prioritizing the application of modern and developed telecommunications technologies that are energy-saving, eco-friendly and able to efficiently use telecommunications resources.

5. Ensuring the safety of telecommunications infrastructure and information security for the application of telecommunications technology and information technology, especially in the encouragement of electronic commerce and electronic government development.

II. DEVELOPMENT TARGETS

1. Until 2015:

a) The ratio of fixed subscriber lines may reach 15 – 20 lines/100 people; the ratio of cellphones may reach 140 cellphones/100 people; the ratio of broadband internet subscribers may reach 6 – 8 subscribers/100 people; the ratio of broadband mobile subscribers may reach 20 - 25 subscribers/100 people;

b) The percentage of households that have telephone may reach 40 – 45%; the percentage of households that have internet access may reach 15 – 20%; the percentage of internet users may reach 40 – 45% of the population;

c) The mobile coverage may reach 90% of the national population;

d) Over 90% of the communes that have public telecommunications services providers may have broadband internet access;

dd) The telecommunications growth rate may reach 1,5 – 2 times of the GDP growth rate. The total revenue from telecommunications may reach 10 – 12 billion USD, accounting for 7 – 8% of GDP.

2.Until 2020:

a) The ratio of fixed subscriber lines may reach 20 – 25 lines/100 people; the ratio of broadband internet subscribers may reach 15 – 20 subscribers/100 people; the ratio of broadband mobile subscribers may reach 35 - 40 subscribers/100 people;

b) The percentage of households that have telephone may reach 40 – 45%; the percentage of households that have internet access may reach 35 – 40%; the percentage of internet users may reach 55 – 60%;

c) The mobile coverage may reach 95% of the national population, the roads, the key economic and National defense and security regions;

d) 100% of the communes that have public telecommunications services providers may have broadband internet access;

dd) The telecommunications growth rate may reach 1.2–1.5times of the GDP growth rate. The total revenue from telecommunications may reach 15– 17billion USD, accounting for6–7% of GDP.

III. DEVELOPMENT ORIENTATION

1. Marketdevelopment orientation:

a) Ensure the sustainable development of the telecommunications market concentrating on quality and efficiency on the basis of fair and healthy competition. For some crucial telecommunications services market (domestic long-distance, international, mobile, broadband internet services), it is required to ensure that, by implementing the policies on licensing, connecting, controlling and stabilizing market as well as appropriately managing telecommunications resources, there must be at least 3 enterprises participating in each market for the purpose of encouraging the competition, and prevent the extensive participation, especially of foreign, in the telecommunications industry that may leads to tough competition and make the business less efficient

b) Utilizing the internal resources and facilitating the participation of the economic sectors in the telecommunications development by implementing the policies on licensing telecommunications business and step by step equitizing telecommunication enterprises of which the dominant shares are not hold by the State. On the other hand, for the purpose of developing the telecommunications market towards socialism and assuring the economic security of telecommunications. The State shall keep holding the dominant shares of some services providers of which the network infrastructure is particularly important to the operation of the entire national telecommunications infrastructure and directly affects the socio-economic development and National defense and security.

c) Restructuring the telecommunications market on the basis of reorganizing telecommunication enterprises, especially inefficient State-owned enterprises towards transferring, selling or merging telecommunication enterprises for the purpose of establishing 3 – 4 powerful corporations operating towards specialization, professionalism on the basis of efficient use of telecommunications resources and infrastructure. Strictly controlling the economic concentration and the reasonable management, distribution of telecommunications resources in order to prevent monopoly on telecommunications.

d) Encouraging and supporting capable enterprises in expanding their business an investing in foreign market on the basis of observing laws and ensuring business efficiency.

2. Networkdevelopment orientation:

a) Intensifying the development of broadband network access for households on the basis of prioritizing the wired network (copper or optical cable). Expanding the coverage and improving the efficiency of the third-generation mobile information system (3G) in order to provide wireless broadband access to individuals anywhere and any time.

b) Increasing the capacity of domestic long-distance and international transmission system on the basis of efficiently using the existing system and concurrently investing in the upgrading and building high-capacity international and domestic submarine and land optical cables, and launching telecommunications satellites serving the domestic and regional market.

c) Step by step digitizing the system of radio and television land transmission nationwide. Facilitating the development of satellite television and cable television on the basis of prioritizing the application of digital technology and optical cables.

d) Ensuring the highest security, uniformity, integrity and safety when investing in equipment for setting up the network, for providing and using services.

dd) Planning, building and developing the synchronous and uniform passive technical telecommunications infrastructure. Starting to bury the telecommunications cable network, renovating the antennae under the technical regulations and standards that satisfy the requirements for scenery, environment, urban planning and telecommunications infrastructure safety. Increasing the share of telecommunications infrastructure among the telecommunication enterprises in order to establish the network and provide the telecommunications services efficiently, conveniently and quickly.

e) Developing the separate telecommunications network of agencies and organizations by utilizing the public telecommunications infrastructure, especially the domestic transmission system of telecommunication enterprises.

g) Increasing the capacity of the separate telecommunications network serving the State’s, the Communist Party’s agencies, the National defense and security. Separating the telecommunications business and public telecommunications services in order to improve the efficiency of the business and the public telecommunications network, ensure the information security of the separate telecommunications network serving the State and the Communist Party’s agencies, and the National defense and security.

h) Building a uniform separate telecommunications system serving the natural disaster prevention. Enhancing the development and modernization of the sea and island telecommunications network in order to ensure the information provision for National defense and security, and life safety on the sea.

3. Servicesdevelopment orientation:

a) Developing the new telecommunications services congruently with the trend of technology and services convergence, enhancing the development of telecommunications application services in order to increase the efficiency of the telecommunications network invested.

b) Efficiently popularizing the public telecommunications services on the basis on increasing the investment in developing telecommunications infrastructure in public areas, supporting poor, semi-poor households and other subjects on welfare with demands for such services.

c) Ensuring the provision of fixed telephone services for the Communist Party’s agencies, the State, the authorities at all levels, and the socio-political organizations nationwide. The provision of fixed telephone services for the people must comply with the market mechanism in urban areas and plains, and comply with the public telecommunications mechanism in remote areas, bordering areas, islands, and impoverished areas. Expediting the provision of mobile information services and broadband internet services for all areas, households and people nationwide.

d) Reducing costs and prices to provide affordable telecommunications services suitable for the incomes of the people, and step by step adjusting the services prices to ensure the business efficiency of enterprises in the competitive environment and during the course of international integration.

dd) Strictly controlling the prices, updating the average prices of the domestic, regional and international market in order to manage prices on the basis of respecting the pricing of enterprises, ensuring the price stability, avoiding overly increasing prices that affect the users’ interest, and underselling that causes damage to enterprises and instability for the market.

e) Improving the telecommunications services quality by formulating, amending, supplementing, introducing and applying technical regulations and standards, and provisions on the management of telecommunications services quality appropriate for the rapid development of technology and services.

g) Intensifying the enforcement of laws on services quality by qualification and conformity announcement, examination, supervision, inspection and sanctions against administrative violations in a strict and quick manner, in order to further improving the services quality for the purpose of satisfying people’s diverse demands.

4. Technologicaldevelopment orientation:

a) The development and application of telecommunications technology must be congruent with the world’s trend and the Vietnam’s conditions. The time for applying a new technology must depend on the investment efficiency, the market demands, the social interest and the completion of the technology.

b) Developing, applying modern technology, efficiently using telecommunications resources using latest core technology, broadband network, IPv6 Internet, radio and television transmission network congruent with the conditions of each enterprise in order to provide multiple services using a uniform telecommunications infrastructure.

c) Boosting the application of eco-friendly and energy-saving telecommunications technology in order to satisfy the requirements for global climate change.

5.The use and planning of telecommunications resources:

a) Ensuring the telecommunications resources re planned, distributed and transferred publicly, equitably and transparently that satisfy the requirements for establishing a healthy and competitive telecommunications market. Strictly controlling the accumulation of telecommunications resources, especially radio frequencies, via selling, merging and transferring telecommunication enterprises in order to avoid breaking the telecommunications resources planning and reduce the competition on the market.

b) Applying the market mechanism, such as auctions, selection and transfer of the right to use radio frequencies, telecommunications numbers, internet domains, in order to select economically, financially, technically capable enterprises to participate in the market and improve the efficiency of telecommunications resources.

c) Planning and distributing telecommunications resources, especially the radio frequency bands towards enhancing the development of wireless broadband network, mobile information network of the next generation, digital radio and television transmission network.

d) Studying, testing and assessing until 2014; From 2015: applying the next-generation broadband mobile telecommunication services using new frequency bands congruent with the world’s trend and Vietnam’s conditions.

dd) From 2020: considering the rearrangement of the existing frequency bands used for the second-generation mobile information system, and the equivalent radio and television system to be used for the next generation of mobile information system.

IV. SOLUTIONS

1. Solutions form completing the laws and policies on telecommunications

a) Formulating, guiding and implementing the strategies, planning, plans and programs related to the management and development of telecommunications 2011 – 2020.

b) Formulating and promulgating the legal documents guiding the implementation of the Law on telecommunications and the Law on Radio frequency.

c) Enhancing the development, adjustment and improvement of the standards of telecommunications congruent with the Vietnam’s development and international practice.

d) Formulating the mechanism, policies and provisions on licensing, pricing, services quality, connection, resources, technical telecommunications infrastructure, network safety and information security appropriate for the convergence of technology and services in the competitive environment and international integration.

dd) Studying and applying the particular mechanism for investing and bidding in the telecommunications industry in order to ensure the uniformity of the network (not so many kinds of equipment in the network that cause difficulties for connecting, managing, utilizing, maintaining and repairing the equipment), an to avoid the dependence on some equipment providers that leads to dependence on technology and prices causing damage to the interests of enterprises and the country.

e) Formulating and carrying out the public telecommunications programs towards innovating the forms and methods of public telecommunications services provision, combining supporting regions and supporting users, changing from setting up targets to placing orders and bidding for public telecommunications services provision.

2. Scientific and technological solutions

a) Concentrating the human and financial resources on development and application research in order to increase the productivity and competitiveness among telecommunication enterprises.

b) Enhancing the application of hi-tech to the setting up of network, the services provisions, the production and assembly of telecommunications terminal devices, especially mobile devices and digital television converters, aiming at reducing prices and rapidly making the quality and affordable telecommunications services popular with the people.

c) Tightly combining research, training, technology transfers among research institutes, schools and telecommunication enterprises in order to quickly apply the scientific and technological research results to the practice.

d) Intensifying the application of information technology to the management and utilization of the network, and the services provisions for the purpose of reducing costs and prices, improving the efficiency of telecommunication enterprises.

3. Organizational solutions

a) Completing the mechanism and policies for restructuring the telecommunications market towards sustainable development, efficiency, and healthy competition. Enhancing the rearrangement and reorganization of the telecommunication corporations and enterprises, especially State-owned ones towards specializations and professionalism, appropriate for the particular operation of the telecommunications industry (uniform network, convergent technology and services) in order to improve the productivity and competitiveness.

b) Selling, buying, merging and transferring the inefficient and small telecommunication enterprises consistently with the market mechanism in order to establish large and competitive telecommunication enterprises capable of dominating the domestic market and reaching international markets. Strictly controlling the telecommunication enterprises that dominate the market, commit acts of economic concentration, transferring the right to use telecommunications resources that mess up the plan and reduce the competitiveness on the market.

b) Equitizing and withdrawing capital from telecommunication enterprises of which the dominant shares are not hold by the State in order to facilitate the participation of the economic sectors in the telecommunications development and ensure the compliance with law provisions on property under the Law on telecommunications.

d) Keeping on improving the capability of management agencies in charge of telecommunications, internet, radio frequencies, technical broadcasting infrastructure management congruently with the technological development trend and the Vietnam’s conditions.

dd) Completing the reform of the Vietnam Posts and Telecommunications Group (VNPT), and Viettel in order to improve the competitiveness and ensure the business efficiency of enterprises.

4. Resourcessolutions

a) Using the Public Telecommunications Fund to support and grant loans to the programs and projects of developing telecommunications infrastructure and making telecommunications services popular in public areas and subjects on welfare.

b) Encouraging all economic sectors to participating in building, developing and using the telecommunications infrastructure, especially the broadband one; building the system of passive telecommunications infrastructure such as antennae,  antennae, cable posts and cable ducts; diversifying the telecommunications services. Formulating capital mechanisms, technological solutions, and appropriate business models to attract investment in telecommunications to remote areas, bordering areas, islands, and impoverished areas.

c) Using foreign development aid (ODA) for building infrastructure and universalizing telecommunications services and broadband internet in rural areas, highlands, remote areas, and islands if forms of public telecommunications services, community information centers, schools, hospitals, cultural centers, libraries, and performing other public duties.

d) The State shall support the programs and projects of communications, training high quality human resources of telecommunications, and improving digital skills of people living in rural areas, remote areas, bordering areas, and islands.

dd) Intensively supporting and training the human resources for developing and applying telecommunications and information technology right in the universities that provide training in telecommunications and information technology.

5. International cooperation solutions

a) Boosting the international telecommunications integration on the basis of clearly determining the targets, principles and solutions appropriate for the interests and conditions of Vietnam when participating in bilateral and multilateral trade agreements.

b) Keeping on intensifying the cooperation in international telecommunications organizations and forums. Exchanging experience in formulating laws and policies on telecommunications, training experts in telecommunications technology and management.

c) Encouraging and facilitating the foreign investment in the telecommunications industry in conformity with Vietnam’s laws and telecommunications plans.

d) Formulating preferential mechanisms and policies for Vietnam’s telecommunication corporation and enterprises to invest in foreign countries.

6. Solutions for information, propagation and awareness improvement

Improving and unifying the awareness, intensifying the information and propagation of the viewpoints, targets, orientation and the contents of this Plan to all levels, Ministries, sectors, localities and enterprises via means of mass media, conventions, and seminars.

Article 2. Organizing the implementation

1. The Ministry of Information and Communications:

a) In charge of organizing and supervising the implementation of this Plan, submitting the updates and amendments appropriate for the Vietnam’ economic development to the Prime Minister.

b) Formulating, guiding and implementing the strategies, planning and plans related to telecommunications development 2011 – 2020 such as frequency planning, number planning, passive telecommunications infrastructure planning, frequency control system planning, technical infrastructure planning of Vietnam Internet Network Information Center (VNNIC), the national action plan for IPv6.

c) Formulating and guiding the implementation of legal documents to implement the Law on telecommunications, the Law on Radio frequency, such as the provisions on selection and auction of telecommunications resources, provisions on the list of enterprises of which the dominant shares are hold by the State, provisions on organizing, managing and using the separate telecommunications network serving the Communist Party’s agencies and the State agencies.

d) Formulating and submitting the provisions on Vietnam’s telecommunications market management to the Government, in order to ensure the healthy competition and sustainable development.

dd) Formulating, guiding and organizing the implementation of the provisions on licensing, connecting, managing resources, managing telecommunications services quality and standards.

e) In charge of and cooperating with the Ministry of Science and Technology in formulating and applying the standards of telecommunications in conformity with Vietnam’s and international laws.

g) In charge of and cooperating with the Ministry of Finance in guiding the telecommunication enterprises to sell, buy, merge, transfer and equitize consistently with the plans and the laws.

h) In charge of and cooperating with the Ministry of Finance in formulating the methods, guiding and carrying out inspections of the telecommunications services pricing of enterprises in order to stabilize prices of the telecommunications market.

i) In charge of and cooperating with the Ministry of Industry and Trade in guiding and performing competition management over the telecommunications services market.

k) In charge of and cooperating with the Ministry of Public Security in formulating and implementing the provisions on infrastructure and information security in telecommunications activities.

l) In charge of and cooperating with the Ministry of Construction, relevant Ministries and sectors in guiding the formulation of plans and the licensing of passive telecommunications technical infrastructure constructions.

m) In charge and cooperate with the Ministry of Finance in formulating, guiding, managing and inspecting the implementation of the Public telecommunications services provision program.

2. The Ministry of Science and Technology:

Formulating the mechanism for investment support under the Law on high technology and its guiding documents so that the telecommunication enterprises may apply, research, develop and commercialize their products, or produce, assemble telecommunications equipment appropriate for the conditions and demands in Vietnam.

3. The Ministry of Planning and Investment:

a) In charge of and cooperating with the Ministry of Information and Communications and the Ministry of Finance in formulating preferential mechanisms and policies for Vietnam’s telecommunication corporation and enterprises to invest in foreign countries.

b) Cooperating with the Ministry of Information and Communications in executing the key investment projects (enclosed with the planning annex); cooperating in formulating the capital mechanism, finding technological solutions, and business model to attract economic sectors to participating in the provision of telecommunications services in remote areas, bordering areas, islands and impoverished areas.

c) Cooperating with the Ministry of Information and Communications in appraising the separate telecommunications network of agencies and organizations to ensure the utilization of the public telecommunications network, especially the transmission network of telecommunication enterprises.

4. The Ministry of Finance:

a) In charge of and cooperating with the Ministry of Planning and Investment in allocating annual budget for implementing the plan from the Ministerial and sectoral budget estimates.

b) In charge of and cooperating with relevant Ministries and sectors in promulgating the mechanism and principles of controlling and managing the rent of public technical infrastructural constructions used for telecommunications network deployment.

c) Cooperating with the Ministry of Information and Communications in formulating the particular financial mechanism with some units in charge of State management over telecommunications and radio frequency, units in charge of information and communications for the State’s and the Party’s agencies in order to satisfy the requirements for the management and development in a competitive environment and increasing international telecommunications integration.

5. The Ministry of Transport:

a) In charge of and cooperating with the Ministry of Information and Communications in bringing the passive telecommunications technical infrastructure planning, and the coastal information station system into the traffic planning locally and nationwide.

b) Cooperating with the Ministry of Information and Communications in guiding the organizations and individuals to manage and use the traffic constructions for telecommunication enterprises to share and use the traffic technical infrastructure for setting up telecommunications equipment and cables.

6. The Ministry of Construction:

a) In charge of and cooperating with the Ministry of Information and Communications in bringing the passive telecommunications technical infrastructure planning, into the construction planning locally and nationwide.

b) In charge of and cooperating with the Ministry of Information and Communications in formulating and submitting the Decree on sharing public constructions among the construction, electricity, traffic and telecommunications sectors to the Government.

c) Cooperating with the Ministry of Information and Communications in guiding the organizations and individuals to manage and use the underground constructions for telecommunication enterprises to share and use the technical infrastructure for setting up telecommunications equipment and cables.

7.The Ministry of Industry and Trade:

a) In charge of and cooperatingwith the Ministry of Information and Communications in guiding theVietnam Electricity (EVN)to manage and use theelectric postsfor telecommunication enterprises to share and use theelectric postsfor setting up telecommunications cables.

b) Guiding the market management agencies to strictly control the telecommunication devices banned from circulation and the circulation of telecommunication devices in accordance with the promulgated technical regulations and standards.

c) In charge of and cooperating with the Ministry of Industry and Trade in guiding and economic concentration management over the telecommunications services market.

8. The Ministry of National Defense:

a) In charge of and cooperating with the Ministry of Information and Communications in deploying the separate network, including the communications system and the warning system serving national defense.

b) In charge of and cooperating with the Ministry of Information and Communications in guiding the military units to protect the submarine cables.

c) Cooperating with the Ministry of Information and Communications and the Ministry of Public Security in allocating the frequency bands among the security, national defense, and civil sectors,

9. The Ministry of Public Security:

a) In charge of and cooperating with the Ministry of Information and Communications in deploying the separate network, including the communications system and the inspection, supervision, positioning systems ensuring the national security, social order and crime prevention.

b) Cooperating with the Ministry of Information and Communications in formulating and implementing the provisions on infrastructure and information security in telecommunications activities.

c) Cooperating with the Ministry of Information and Communications and the Ministry of National Defense in allocating the frequency bands among the security, national defense, and civil sectors,

10. People’s Committees of central-affiliated cities and provinces:

a) Spreading information and disseminating the viewpoints, targets, orientation and the contents of this Plan to all levels, Ministries, sectors, localities and enterprises via local means of mass media.

b) Formulating and promulgating the local passive telecommunications technical infrastructure planning congruently with the national telecommunications development planning, socio-economic development planning and local construction planning.

c) Formulating, approving and announcing the passive telecommunications technical infrastructure planning every 5 years (amended and supplemented annually), and bring the passive telecommunications technical infrastructure planning into the local traffic planning and detailed construction planning on scale1/2000and1/500.

d) In charge of formulating and implementing the plans for renovating and burying local telecommunications cables.

dd) Managing, elaborating and implementing the share of telecommunications infrastructure with other local technical infrastructure.

e) Guiding the settlement and handling of illegal acts of obstructing and sabotaging the construction and use of local telecommunications infrastructure.

11. Telecommunication corporations and enterprises:

a) Formulating and implementing the planning for telecommunications services and network, and the passive telecommunications technical infrastructure planning congruently with the national telecommunications development planning and passive technical infrastructure planning of the central-affiliated cities and provinces.

b) Improving the competitiveness, business efficiency, and use efficiency of telecommunications resources in order to provide quality and affordable telecommunications services capable of satisfying the diverse demands of the users. Enhancing the development of telecommunications application services using the built telecommunications infrastructure in order to utilize the convergence of technology and services.

c) Investing in, upgrading and expanding the telecommunications network, especially the domestic and international transmission network and expansive high-speed broadband network on the basis of compatibly combining copper cables, optical cables, satellites and mobile devices in order to satisfy the requirements for socio-economic development and ensure National defense and security.

d) Enhancing the share of passive telecommunications technical infrastructure among the telecommunication enterprises. Burying and reorganizing the information cables, rearranging the system of antennae and mobile transmitter stations, ensuring the quality, safety and urban scenery.

dd) Enhancing the reserves of transmission capacity and crucial equipment in the network, improving the network connection among the telecommunication enterprises, especially international telecommunications network in order to ensure infrastructure safety and information security in any situation.

Article 3.This Decision takes effect on October 01, 2012.

Article 4.Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of central-affiliated cities and provinces, Presidents of the Member assembly, General Directors, and Directors of telecommunication corporations and enterprises are responsible for the implementation of this Decision

ANNEX

LIST OF KEY PROJECTS AND PROGRAMS OF NATIONAL TELECOMMUNICATIONS DEVELOPMENT PLANNING UNTIL 2020
(Promulgated together with the Decision No.32/2012/QĐ-TTgon July 27, 2012 of the Prime Minister)