Decree No. 25/2011/ND-CP dated April 06, 2011 of the Government detailing and guiding the implementation of a number of articles of the Telecommunications Law

DECREE

DETAILING AND GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE TELECOMMUNICATIONS LAW

GOVERNMENT

Pursuant to the Law on Government Organization dated December 25, 2001;
Pursuant to the Telecommunication Law dated November 23, 2009;
At the proposal of the Minister of Information and Communications,

DECREES:

Chapter 1.

GENERAL PROVISIONS

Article 1.Regulationscopeand subjects of application

1. This Decree details the implementation of some articles of the Telecommunication Law for the following telecommunication activities:

a) Investment in and trading goods and telecommunication services;

b) Establishing telecommunication networks and providing telecommunication services;

c) Providing public-utility telecommunication services and performing the mission of public-utility telecommunication services;

d) Managing licensing activities, connection activities, expenses, charges, fees, resources, standards, technical norms, quality of telecommunication services and services;

e) Planning, design and construction of telecommunication technical infrastructure.

2. This Decree applies to the domestic organizations or individuals, foreign organizations or individuals involved in or related to telecommunications operations in Vietnam.

Article 2. Management agencies specialized in telecommunication

1. 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.

2. The Prime Minister shall specify the functions, duties, powers and organizational structure of the professional management agencies of telecommunications.

Chapter 2.

TELECOMMUNICATION SERVICES TRADING

Article 3. Ownership in the trading of telecommunication services

1. An organization or individual owning more than 20% of charter capital or shares in a telecommunication enterprises shall not be allowed to possess more than 20% of charter capital or shares of other telecommunication enterprises doing the business in the same market belonging to the List of telecommunication services promulgated by the Ministry of Information and Communications.

2. Telecommunication enterprises that provide telecommunication services on the List specified in Clause 1 of this Article shall report to the specialized management agencies on telecommunications in accordance with the Ministry of Information and Communication upon changes in the list of organizations or individuals owning more than 20% of charter capital or shares of the enterprise.

Article 4. Forms, conditions and ratios of contributed capital of foreign investors

1. Foreign investors are allowed to invest and trade telecommunication services in the form of direct investment, indirect investment in accordance with the Telecommunication Law and the law on investment.

2. In case of direct investment to provide telecommunication services without network infrastructure, foreign investors are allowed to jointly venture or cooperate the business on the basis of contracts with enterprises established in Vietnam. Where the investment is to provide telecommunication services with network infrastructure, foreign investors are allowed to jointly venture or cooperate the trading on the basis of contracts with telecommunication enterprises have been licensed to establish a telecommunication network in Vietnam.

3. In addition to the conditions prescribed by laws on investment, foreign investment projects in the field of telecommunication services trading must satisfy the following conditions:

a) In accordance with the planning of the national telecommunication development, the planning of telecommunications resource and the planning of passive telecommunication technical infrastructure in the area of investment;

b) To meet the conditions for legal capital and committed amount for investment specified in Articles 19, 20 and 21 of this Decree.

4. The proportion of contributed capital by foreign parties must be consistent with the provisions of the laws of Vietnam, international treaties to which the Socialist Republic of Vietnam is a member.

Article 5. Registration, verification of foreign investment projects in the telecommunication services trading

1. For foreign investment projects on trading telecommunication services without network infrastructure with the size of investment of less than 300 billion VND, the investor shall perform procedures for investment registration in the provincial state agency managing the investments for an investment certificate.

2. For foreign investment projects on trading telecommunication services without network infrastructure with the size of investment capital of VND 300 billion or more, the investor shall carry out the procedures for investment evaluation at the provincial state agencies managing the investments to be granted an investment certificate.

3. For foreign investment projects on trading telecommunication services with network infrastructure, the investor shall implement procedures for evaluation and approval of investment policy at the provincial state agency managing investment to be granted an investment certificate. Competence to approve the investment policy complies with the law on investment.

4. Apart from the examination in accordance with laws on investment, for foreign investment projects in the telecommunication services trading, further verification of the contents specified in Clause 3 of Article 4 of this Decree are required.

5. Dossiers of investment projects, processes and procedures for registration and verification the investment and grant of investment certificates shall comply with laws on investment.

Article 6. Handling cases of competition in the telecommunication services trading

1. Competence and procedures for handling cases related to acts in restraint of competition, unfair competition in telecommunication services trading shall be as follows:

a) The management agencies specialized in telecommunications is obliged to dealing with competitive cases of setting up telecommunication networks, providing telecommunication services stipulated in Clauses 1 and 2 of Article 19 of the Telecommunications Law.

b) Within 30 working days after receipt of competitive cases, the management agencies, which are specialized in telecommunications, take responsibility for making a decision to address competitive cases. The related parties are obliged to implement the decision of addressing competitive cases, including cases where they disagree to the decision of handling the competitive case by the management agency specialized in telecommunication and have the right to complain and take lawsuits under the provisions of law;

c) For complex competitive cases or cases involved in the function of numerous agencies, the specialized management agencies on telecommunications collect opinions in writing from those agencies before making the decision on the handling of competitive cases. Within 10 working days after receiving the specialized management agencies on telecommunications, the consulted agencies are obliged to respond in writing.

2. Competence and procedures for handling the economic concentration in the telecommunication services trading shall be as follows:

a) For the economic concentration have a combined market share from 30% to 50% of a telecommunication services market, enterprises participating in economic concentration shall notify the management agency specialized in telecommunication and competition-management agencies before conducting before performing economic concentration. For the economic concentration have a combined market share over 50% of the market of telecommunication services, the Minister of Industry and Trade shall make a decision on approval of exemption after receiving a written approval of exemption by the Minister of Information and Communications;

b) Within 10 working days after receiving complete dossiers of application for exemption specified in Clause 1 of Article 29 of the Competition Law, the Ministry of Industry and Trade send the dossier to the Ministry of Information and Communications to get opinions. Within 20 working days from the date of receipt of application for exemption, the Ministry of Information and Communications subject to obligation of responding in writing to the Ministry of Industry and Trade.

Article 7. Dispute resolution in telecommunication services trading

1. Disputes in the telecom services business is a dispute between the telecommunication enterprises arising directly in the course of setting up telecom networks, providing telecommunication services, including:

a) Disputes over the telecommunications connection;

b) Disputes over the sharing of telecommunication technical infrastructure;

c) Disputes over payment rates between telecommunication enterprises;

d) Other disputes as defined by the Ministry of Information and Communications.

2. The order and procedures for dispute settlement are as follows:

a) Within 30 working days after receipt of the request for dispute settlement, the management agencies, which are specialized in telecommunications, are obliged to organize consultations between the parties. The disputing parties are obliged to provide sufficiently relevant information and evidence, and are obliged to participate in consultations. Consultation results must be made in writing;

b) Within 15 working days from the end of the negotiations, the specialized management agencies on the telecommunication release a dispute settlement decision. The disputing parties are obliged to implement immediately the dispute settlement decision, even in the case where they disagree to the dispute settlement decision of the specialized management agencies on telecommunications and are entitled to lodge a complaint or lawsuit by prescribed by laws.

Chapter 3.

ESTABLISHMENT OF NETWORKS AND PROVISION OF TELECOMMUNICATIONS SERVICE

Article 8. Classification of telecommunication network

Telecommunication networks include:

1. Fixed ground telecommunication networks.

2. Satellite fixed telecommunication network.

3. Mobile ground telecommunication network.

4. Satellite mobile telecommunication networks.

5. Telecommunication networks being defined by the Ministry of Information and Communications.

Article 9. Classification of telecommunication services

1. Basic telecommunication services include:

a) Telephone service;

b) Fax service;

c) Data transmission service;

d) Photo transmission service;

e) Message Service;

f) Video conference services;

g) leased line services;

h) Internet connection service;

i) Other basic telecommunication services as stipulated by the Ministry of Information and Communications.

2. Other value added telecommunication services include:

a) Electronic mail services;

b) Voice Mail Service;

c) Added value fax services;

d) Internet access service;

e) Added value telecommunication services as prescribed by the Ministry of Information and Communications.

3. Based on technological characteristics, mode of transmission, communication range, form of payment rates, telecommunication services stipulated in Clauses 1, 2 of this Article can be split in detail or combined with each other to form specific types of services associated to the aforementioned factors.

4. Based on the taxonomy of services specified in Clauses 1, 2, 3 of this Article, the situation of market development and the policy for management of telecommunications for each period, the Ministry of Information and Communications issued a List of basic telecommunication services and value added telecommunication services.

Article 10. Trading specialized telecommunication goods and wireless electric equipments

1. A specialized telecommunication good is commodity associated with the provision of telecommunication services defined by telecommunication enterprises, including:

a) Devices that are attached by telecommunication subscriber number;

b) Payment card for telecommunication services;

c) Other specialized telecommunication goods as defined by the Ministry of Information and Communications.

2. Organizations or individuals perform sales promotion with respect to specialized telecommunication goods must observe provisions of this Decree and laws on trade.

3. Organizations or enterprises that produce wireless electric equipments for use in Vietnam must register and comply with the conditions prescribed by the Ministry of Information and Communications.

4. Wireless electric equipments being imported or temporarily imported for re-export shall be subject to the permission of the Ministry of Information and Communications.

5. Organizations or individuals trading of wireless electric equipments must perform quality control of telecommunications in accordance with Clause 1 of Article 35 of this Decree.

Article 11. Providing telecommunication services

1. Providing telecommunication services is the use of equipment, establishing a system of telecommunication equipment in Vietnam to perform one, some or all stages of the process of initiation, relay, routing, information connection for user of telecommunication services by concluding a contracts with the users of telecommunication services, telecommunication services agents, telecommunication enterprises for profit purposes.

2. The provision of telecommunication services across the border to users of telecommunication services in the territory of Vietnam must conduct through a trade agreement with a Vietnam s telecommunication enterprise that has already been licensed to provide telecommunication services, including the type of international telecommunication services.

3. Based on international practice, the regulations on aviation safety, marine safety, and requirements of national defense and security, the Ministry of Information and Communication shall specify and guide the provision and the use of cross-border telecommunication services for ships, boats, planes on the airspace and territorial waters of Vietnam and other special cases.

Article 12. Resale of telecommunication services

1. Before the resale of fixed telecommunication services to users in a location that have specified address and ranges for which the legal usage right is transfer, organizations or individuals are obliged to register their business and sign the contract for telecommunication agency with telecommunication enterprises.

2. Before the resale of fixed telecom services in two locations or more with the addresses, or area being specified to transfer the lawful usage, before reselling mobile telecommunication services, enterprises are required to possess a license of providing telecommunication services.

3. Ministry of Information and Communication shall specify the resale of telecommunication services.

Article. 13 Contract of use of telecommunication services

1. The provision and use of telecommunication services are conducted on the basis of contracts concluded between communication enterprises with users of telecommunication services.

2. Contracts for use of telecommunication services are concluded verbally, in writing or by specific acts.

3. For some telecommunication services in the List of telecommunication services that require form-based contract issued by the Ministry of Information and Communications, telecommunication enterprises shall be obliged to draft a contract template for use of telecommunication services and register the same with the management agencies specialized in telecommunications for the uniform implementation throughout the enterprise after it is approved.

4. Ministry of Information and Communications shall issue a List of telecommunication services requiring contract template, specify the procedures for registration of contract template for use of telecommunication services.

Article 14. Providing public-utility telecommunication services

1. Principles for providing public-utility telecommunication services

a) Developing telecommunication technical infrastructure, widely providing telecommunication throughout the nation, in which priority is for remote areas, border and island areas, and particularly difficult areas where telecommunication enterprises can not afford an effective business under market mechanisms;

b) Ensuring the right to equal and reasonable access for all people, and from time to time, the State shall set forth preferential policy to provide or support terminals and public-utility telecommunication services to poor households, near-poor households, familiesunder preferential treatment policyand subjects under other special policy;

c) Supporting the development of telecommunication technical infrastructure, terminals and providing public-utility telecommunication services is done by enterprises that provide public-utility telecommunication services, terminal-producing enterprises or directly to users of telecommunication services.

2. VietnamPublic-UtilityTelecommunicationServiceFundis a State financial organization under the Ministry of Information and Communications, which operates upon not-for-profit basis to support the implementation of policies of the State over the public-utility telecommunications throughout the country.

The Ministry of Information and Communication shall lead and coordinate with related ministries or sectors compose regulations on functions, responsibilities, organizational structure and operation of VietnamPublic-UtilityTelecommunicationServiceFund and submit the same to the Primer Minister for a relevant decision.

3. Contribution level to Vietnam Public-Utility Telecommunication Service Fund for telecommunication services must use a maximal detraction from revenue not exceeding 5% of those sales of telecommunication services. Contributions to the VietnamPublic-UtilityTelecommunicationServiceFundare accounted and included in business expenses of the enterprises.

Depending on each period, the Prime Minister shall specify the list of telecom services requiring detraction from revenue to pay to VietnamPublic-UtilityTelecommunicationServiceFundand the contribution rate for each service in the List.

Article 15. Registration, storage and use of subscriber information

1. When contracting, telecommunication subscriber is obliged to providing telecommunication enterprises with following information:

a) For the subscriber as an individual: full name, date of birth, number, date and place of issuance of identity cards for the Vietnam citizens or passport for foreign citizens;

b) For the subscriber as an organization: organization name, operating address, number and date of the decision of establishing, number and date of the license for operation or number and date of certificate of registration of business of the organization; the full name, date of birth, number, date and place of issuance of ID card or passport of the person act as a reprehensive whose name in the contract for use of telecommunication services.

2. Registration of subscriber information

The registration of subscriber information are done at the provision point of the public-utility telecommunication services where there is an agent of telecommunication enterprises or at an agency authorized by telecommunication enterprises by signing a contract to receive registration of subscriber information (hereinafter referred to as the point of registration of subscriber information.). A point of registration of subscriber information must meet the following conditions:

a) Its location for transaction is specific;

b) Having enough equipment to store and transfer the subscriber information in accordance with the Ministry of Information and Communications;

c) Having transactors who have been trained by telecommunication enterprises over the processes and procedures for registration of subscriber information;

d) Other conditions as prescribed by the Ministry of Information and Communications.

3. Storing subscriber information

a) The owner of the subscriber information-registration point is obliged to store the registered subscriber information in accordance with the Ministry of Information and Communications and to provide competent state agencies upon request;

b) Telecommunication enterprises shall take responsibility to build technical systems and database to collect, store and manage subscriber information in accordance with the Ministry of Information and Communication; provide subscriber information and connect database of subscriber information at the request of the competent state management agencies.

4. Using subscriber information

Subscriber information is used only for the following purposes:

a) To serve the national security, social order and safety;

b) To serve the state management on telecommunications;

c) To serve the specialized management, exploitation of the network and provision of telecommunication services of telecommunication enterprises;

d) Other purposes as prescribed by the Ministry of Information and Communications.

5. Ministry of Information and Communication shall specify the registration, storage and use of subscriber information.

Article 16. Condition for stopping telecommunication service trading

1. Telecommunication enterprises are only allowed to suspend partly or all of telecommunication services if the following conditions are satisfied:

a) The lawful rights and interests of users of telecommunication services are ensured under the signed contract for use of telecommunication services;

b) Informing the specialized agencies on telecommunications of the event as defined in Clause 1 of Article 17 of this Decree.

2. Telecommunication enterprises holding essential facilities, telecommunication enterprises dominating the market, enterprises providing public-utility telecommunication services are only allowed to stop the business in part or all telecommunication services directly related to the essential facilities, telecommunication services dominating the market, public-utility telecommunication services if the following conditions are satisfied:

a) Ensuring the lawful rights and interests of users of telecommunication services under the signed contract for use of telecommunication services;

b) Getting the written consent of the Ministry of Information and Communications under the provisions of Clauses 2 and 3 of Article 17 of this Decree;

 c) In case of the suspension of trading the service, but not terminating their operation, they must provide users of telecommunication services with alternative telecommunication services, or switch the users to a equivalent telecommunication service of other telecommunication enterprises, or compensate for the users of services;

d) In case of suspension of trading service due to termination of their operation, reorganization plan or plans for bankruptcy and dissolution of enterprises must include measures to ensure the provision of telecommunication services will be continued to users.

Article 17. Procedures for suspension of telecommunication services trading

1. Telecommunication enterprises other than telecommunication enterprises holding essential facilities, telecommunication enterprises dominating the market, enterprises providing public-utility telecommunication services stop trading partly or all of the telecommunication services must submit documents for informing the suspension of providing services to the specialized management agencies in telecommunications at least 60 days before the expected date of cessation of the trading.

2. Telecommunication enterprises holding essential facilities, telecommunication enterprises dominating the market, enterprises providing public-utility telecommunication services when stopping partly or all telecommunication services directly related to essential facilities, telecommunication services dominating the market, public-utility telecommunication services without terminating their operation must submit 03 sets of dossiers requesting for stopping telecommunication services trading to the Ministry of Information and Communications. Within 30 working days after receiving the valid dossier, the Ministry of Information and Communication assess and send a written reply to the enterprise.

3. Telecommunication enterprises holding essential facilities, telecommunication enterprises dominating the market, enterprises providing public-utility telecommunication services when suspending telecommunication services trading due to the end of their operation must submit 03 dossiers asking for an end to their telecommunication services trading to the Ministry of Information and Communications. Within 60 working days from the date of receiving the valid dossier, the Ministry of Information and Communications coordinate with relevant agencies to determine the enterprise-reorganization plans or plans for bankruptcy or dissolution and reply in writing to the enterprise. On the basis of the written reply of the Ministry of Information and Communications, the enterprise is obliged to carry out the plan of reorganization or plan of bankruptcy, dissolution as prescribed by laws.

4. Notice of suspension of telecommunication services trading referred to in Clause 1 of this Article shall include the following information:

a) The services to be ceased, the time point to start stopping the trading, reasons for the suspension, scope of the suspension;

b) Measures and commitments to ensure the lawful rights and interests of users of telecommunication services and relevant parties.

5. A dossier of application for suspension of telecommunication services trading referred to in Clauses 2 and 3 of this Article include:

a) An application for suspension of telecommunication services trading in the form issued by the Ministry of Information and Communications;

b) Report on business situation for service expected to be out of business: revenue, profits, output, market share, number of people using the service;

c) Measures and commitment to ensure the lawful rights and interests of users of telecommunication services and other stakeholders;

d) A reorganization plan or plans for bankruptcy, dissolution of enterprises, security measures to continue to provide telecommunication services to users in the event of termination due to cessation of business activities.

6. Telecommunication enterprises shall take responsibility to notify users of telecommunication services and other related parties publish in the mass media about the suspension of telecommunication services trading at least 30 days before the official suspension of telecommunication services trading.

7. In the case where the business license of telecommunication services is required to amend due to the suspension of services trading, management agencies specialized in telecommunication are obliged to require the telecommunication enterprises to modify the license in accordance with the clauses 1, 3, Article 24 of this Decree.

8. Within 30 working days after the cessation of telecommunication services trading, telecommunication enterprises shall take responsibility to reimburse telecommunication resources that have been publicly allocated for the service or a portion of the services to be out of business (if any) .

Chapter 4.

TELECOMMUNICATION LICENSING

Article 18. Grant of telecommunication license

1. The Minister of Information and Communication shall grant:

a) License to establish a public-utility telecommunication network that uses wireless electric frequency band;

b) License to provide telecommunication services over the public-utility telecommunication network that uses wireless electric frequency band;

c) License to test telecommunication network that uses wireless electric frequency band;

d) License to establish telecommunication network used for diplomatic missions, foreign consulates and representative offices of international organizations in Vietnam that enjoy the consular an diplomatic privileges and immunities;

e) License to install telecommunication cables at sea.

2. Specialized management agencies on telecommunications shall grant:

a) License to establish a public-utility telecommunication network other than those specified in Point a, Clause 1 of this Article;

b) License to provide telecommunication services through the public-utility telecommunication network outside the cases prescribed in Point b, Clause 1 of this Article;

c) License to test telecommunication networks and services other than those prescribed in Point c, Clause 1 of this Article;

d) License to establish private-use telecommunication network outside the cases prescribed in Point d, Clause 1 of this Article.

3. The Ministry of Information and Communications shall detail regulations specified in Clause 1 of Article 36 of the Telecommunications Law, Point b, Clause 2 of Article 36 of the Telecommunication Law on legal capital, the amount of investment commitment and the security measure of implementation of the license as to the licensing for establishing telecommunication network to provide public-utility telecommunication services or perform public-utility telecommunication missions assigned by the State.

Article 19. The legal capital and commitment amount for investment to set up fixed ground telecommunication networks

1. Enterprises applying for a license for establishing fixed telecommunication network without using wireless electric frequency bands, telecommunication subscribers must meet the conditions for legal capital and commitment amount for investment as follows:

a) Establishing a network withinone province or centrally-affiliated city: Legal capital: VND 5 billion; investment commitment amount: At least VND 15 billion for first 3 years from the date of licensing to develop telecommunication network in accordance with the license;

b) Establishing the network within a region (from 2 to 30 provinces and centrally-affiliated cities): Legal capital: 30 billion VND; investment commitment amount: At least 100 billion VND for first 3 year after being granted a license to develop telecommunication network as specified in the license;

c) Establishment of a nationwide network (over 30 provinces and centrally-affiliated cities): Legal capital: 100 billion VND; investment commitment amount: At least 300 billion VND for the first 3 years to develop the telecommunication network in accordance with the license.

2. Enterprises applying for a license for establishing fixed telecommunication network that uses wireless electric frequency band, number of telecommunication subscribers must meet the conditions for legal capital and commitment amount for investment as follows:

a) Establishment of networks within a region (from 15 to 30 provinces and centrally-affiliated cities): Legal capital: 100 billion VND; investment commitment amount: At least 300 billion VND for first 3 years after being granted a license to develop telecommunication network in accordance with the license;

b) Establishing a nationwide network of (over 30 provinces and centrally-affiliated cities): Legal capital: 300 billion VND; investment commitment amount: At least 1,000 billion VND for the first 3 years and at least 3,000 billion VND in 15 years to develop telecommunication network in accordance with the license.

Article 20. Legal capital and commitment amount for investment to set up mobile ground telecommunication network

1. Enterprises applying for a license for establishing ground mobile telecommunication networks with wireless electric frequency channel shall meet the conditions for legal capital and commitment amount for investment as follows:

a) Legal capital: 20 billion VND;

b) Investment commitment amount: At least 60 billion VND for the first three years to develop telecommunication networks with the scale and scope specified in the license.

2. Enterprises applying for a license for establishing ground mobile telecommunication network without using terrestrial wireless electric frequency band (a virtual mobile telecommunication network) must meet the conditions for legal capital and commitment amount for investment as follows:

a) Legal capital: 300 billion VND;

b) Investment commitment amount: At least 1,000 billion VND for the first three years and at least 3,000 billion VND in 15 years to develop telecommunication network in accordance with the license.

3. Enterprises applying for a license for establishing ground mobile telecommunication networks that use wireless electric frequency bands must meet the conditions for legal capital and commitment amount for investment as follows:

a) Legal capital: 500 billion VND;

b) Investment commitment amount: At least 2,500 billion VND for the first three years and at least 7500 billion VND in 15 years to develop telecommunication network in accordance with the license.

Article 21. Legal capital and commitment amount for investment to set up mobile and fixed satellite telecommunication networks

Enterprises applying for a license for establishing satellite mobile and fixed telecommunication networks must meet the conditions for legal capital and commitment amount for investment as follows:

1. Legal capital: 30 billion VND;

2. Investment commitment amount: At least 100 billion VND for the first three years to develop telecommunication networks with the scale and scope specified in the license.

Article 22. Measures to ensure the implementation of telecommunication licenses

1. Telecommunication enterprises fail to comply with the content specified in the telecommunication license or the commitment of businesses when applying for the license must pay fines for violations of implementation of the license as follows:

a) For the license to establish ground fixed telecommunication network that does not use any wireless electric frequency band, telecommunication subscriber number; the license to establish a ground mobile telecommunication network using wireless electric frequency channel; the license to establish a ground mobile telecommunication that does not use the wireless electric frequency band; the license to establish a satellite fixed telecommunication network, the license to establish a satellite mobile communication network: The maximum penalty does not exceed 1% of the investment commitment amount for the first three years after being licensed, but not less than 150 million VND;

b) For the license to establish a ground fixed telecommunication network that uses wireless electric frequency band, telecommunication subscriber number; the license to establish a ground mobile telecommunication network that use wireless electric frequency band: Before receiving the license, the enterprise shall deposit the amount of money equivalent to 5% of the investment commitment amount for the first three years from the date of receiving the license into an account designated by the Ministry of Information and Communications to deduct to pay a penalty in case of violation. Maximum penalty does not exceed 5% of the investment commitment amount for the first three years after being licensed, but not less than 3 billion VND.

2. Ministry of Information and Communications shall guide in detail the content and the rate of penalty for violations of telecommunication licenses.

Article 23. Procedures for granting licenses of telecom services

1. A dossier of application for a license for establishing telecommunication networks

 an enterprise that apply for a license to establish a telecommunication network shall submit 5 dossiers to the management agency specialized in telecommunication and shall be responsible for the accuracy and truthfulness of the license-applying dossier. A dossier of application for a license includes:

a) An application for a license prepared based on the form issued by the Ministry of Information and Communications;

b) A certified copy of certificate of business registration or certificate of investment of the enterprise;

c) A certified copy of the charter of the enterprise;

d) A confirmation of a competent agency or organization, or a legal paper evidencing the legal capital;

e) A business plan in the first five years from the date of licensing include the following contents: Market analysis and forecast, business scheme, revenue, total expenditure for investment, expenditure for each year; the form of investment, scheme to raise capital; human resources;

e) The technical plan corresponding to the business plan in the first five years from the date of licensing include the following principal contents: network configuration, equipment for each year, both the main parts and the backup parts; analysis of network capacity, equipment, capacity of transmission lines, telecommunication resources, technologies, standards, applicable technical norms; measures to ensure service quality and information safety or security;

g) A written commitment to implement the license, which is prepared according to the form regulated by the Ministry of Information and Communications.

2. Dossier of application for a license to provide telecommunication services

An enterprise applying for a license to provide telecommunication services shall send five dossiers to the specialized management agencies on telecommunications and shall be responsible for the accuracy and truthfulness of the dossier. A dossier of application for licensing includes:

a) A form-based application for a license issued by the Ministry of Information and Communications;

b) A certified copy of certificate of business registration or certificate of investment of the enterprise;

c) A certified copy of the charter of the enterprise;

d) Business plan in the first five years from the date of licensing include the following contents: This type of service, service scope, service quality, service charges; market analysis and forecast, revenue, total expenditure for investment, the expenditure for each year, form of investment, capital raising scheme, human resources, measures to ensure the lawful rights and interests of service-users in case where the enterprises stop trading the services;

e) The technical plan corresponding to the business plan in the first five years from the date of licensing include the following contents: Telecommunication network configuration to be used each year, both the main and the backup parts; analysis of network capacity and telecommunication equipment; capacity of transmission lines, telecommunication resources, technologies, standards, applicable technical norms; telecommunications connections; schemes to ensure quality of services; measures to ensure information safety and security;

e) The draft contract template to provide telecommunication services as to the services defined in Clause 3 of Article 13 of this Decree.

3. Where the enterprise concurrently apply for a license to establish public-utility telecommunication networks to provide a specific telecommunication service, the dossier of application for a license may be combined into one set of dossier that apply for a license to establish telecommunication network and apply for a license to provide telecommunication services, but the combined dossier must include all the contents mentioned in Clauses 1 and 2 of this Article.

4. Deadline and process for handling of a dossier

a) Within 5 working days after receiving a dossier, the specialized management agencies on telecommunications review and inform the enterprise of the validity of documents;

b) Within 45 working days after receiving a valid dossier, the specialized management agencies on telecommunications coordinate with relevant agencies in evaluating the dossier and grant a license or ask the Minister of Information and Communications to grant a license to the enterprise. For the cases specified in Clause 2 of Article 19 and Clause 3 of Article 20 of this Decree, the enterprise shall be granted a telecom license within 5 working days after the enterprise complete its obligation to ensure the implementation of the license announced by the management agency specialized in telecommunication;

c) In case of refusal of granting, the management agencies specialized in telecommunications notify in writing the applying enterprise, stating the reasons for refusal.

5. Business license of telecommunication services comprise the following information:

a) Company name, transaction name of enterprise in Vietnamese and foreign language (if any) headquarter location, location of branches and representative offices in Vietnam;

b) License number, date of granting the license, expiration date of license;

c) Type of the telecommunication network, the range of establishing the telecommunication network (if any);

d) The scope of services, types of services permitted to trade (if any);

e) The terms and conditions for the enterprise to comply with when setting up networks, providing telecommunication services.

6. Publication of the contents of a license of telecommunication services trading

Within 30 days from the date of issuance of business licenses for telecommunication services, enterprises must publish in either a newspaper or a web newspaper in three consecutive issues prescribed at Points a, b, c, d, Clause 5 of this Article.

Article 24. Amend, supplement, extend the business licenses for telecommunication services

1. Within the valid term of business licenses for telecommunication services, the licensed enterprise must require for an amendment and supplement to the content of the business license for telecommunication services when the following changes occur:

a) Change of the licensed enterprise’s name;

b) Changes in the scope of establishing telecommunication network and scope of providing telecommunication services, types of services that have been licensed in accordance with provisions by the Ministry of Information and Communications;

c) The other changes defined by the Ministry of Information and Communications.

2. In case of change of address of head office, change of the legal representative, enterprise are not required to perform procedures for amending the telecommunication license but shall notify the licensing agency within 30 days from the official date of the change.

3. Procedures for amending and supplementing the contents of a license

a) An enterprise filed a dossier of application for amending or supplementing the license for telecommunication services trading must send three sets of dossier to the specialized management agencies on telecommunications and shall be responsible for the accuracy, truthfulness of the license-applying dossier. A dossier for amendment and supplement to the content of the business license for telecommunication services include: application for amending or supplementing the content of the license according to the form promulgated by the Ministry of Information and Communications; a report on operation situation of the enterprise; detailed report on the content to be amended and/or supplemented, and other relevant documents;

b) The management agencies specialized in telecommunications receive and consider the validity of a dossier within 5 working days from the date of receipt of dossier; evaluate and decide the amendment and supplement or ask the Minister Ministry of Information and Communications to decide the amendment and supplement to the content of the license under authority specified in Clause 1 of Article 18 of this Decree within 40 working days from the date of receiving the valid dossier. In case of refusal of the amendment or supplement to the license, the management agencies specialized in telecommunications shall reply in writing, stating the reasons for the refusal to the enterprise.

4. Renewal of a license

a) The enterprise that has granted a license for telecommunication services trading wish to extend their license must submit three sets of dossier demanding an extension to the specialized management agencies in telecommunication at least 60 days before the license expires and must take responsibility for the accuracy and truthfulness of the dossier;

b) A dossier for the extension of the license include: application for renewal of the license according to the form issued by the Ministry of Information and Communications, report on the implementation of the license;

c) The management agencies specialized in telecommunications receive and consider the validity of the dossier within 5 working days from the date of receipt, evaluate and decide the extension or ask the Minister of Information and Communication to decide to renew the license within 40 working days from the date of receiving the valid dossier. In case of refusal to extend the license, the management agencies specialized in telecommunications shall reply in writing stating the specific reasons to the enterprise.

5. The announcement of amendment, supplement and extension of the business license for telecommunication services shall comply with the provisions of Clause 6 of Article 23 of this Decree.

Article 25. Granting, amending, supplementing and extending the license to install telecommunication cables in the sea

1. Granting a license to install telecommunication cable in the sea

Organizations applying for the license to install telecommunication cables at sea must submit five sets of dossier to the specialized management agencies on telecommunications and shall take responsibility for the accuracy and truthfulness of the dossier. A dossier of application for a license to install telecommunication cables include:

a) An application for permission to install telecommunication cables at sea in the form issued by the Ministry of Information and Communications;

b) A scheme to install telecommunication cables at sea in which the enterprise specify the nature, objectives and scope of the cable line, matters related to marine survey and submarine operations, list of member contributing capital to invest in the cable line; engineering design and location, expected coordinate for installing telecommunication cables; the construction plans and plans to ensure marine environment and security.

2. Deadline and process for handling of a dossier

a) The management agencies specialized in telecommunications receive and consider the validity of the dossier within 10 working days after receipt, send the dossier to the Ministry of Defense, Ministry of Foreign Affairs and the agencies and organizations concerned within 10 working days after receiving a valid dossier. Within 30 working days after receiving the dossier, the Ministry of Defense, Ministry of Foreign Affairs and other related agencies and organizations shall reply in writing;

b) The specialized management agency on telecommunications evaluate and submit the dossier to the Minister of Information and Communication for consideration to grant a license within 30 working days after receiving the reply from the Ministry of Defense, Ministry of Foreign Affairs and other agencies and organizations involved. In case of refusal, the management agencies specialized in telecommunications shall reply in writing making the reasons for refusal known to the organization that demand the license;

c) Based on the issued license, the specialized management agencies on telecommunications coordinate with the General Staff of the Defense Ministry to allow ships and boats to reach the sea territory of Vietnam to survey, install, maintain and repair telecommunication cables in the sea under the license and the provisions of the laws.

3. Amending or supplementing the license

a) During the period of validity of the license for installation of telecommunication cables at sea and the licensed organization must send five sets of dossier demanding amendments and supplements to the license content to a management agency specialized in telecommunication when there is a change of name of the licensed organization, change in information on the installed cable line.

In case of change of address of head office, the licensed organization is not required to perform procedures to modify the telecommunication license, but must notify the licensing agency within 30 days after the official date of the change.

b) A dossier demanding amendments or supplements to the license include: Application for amendments or supplements to the license according to the form issued by the Ministry of Information and Communications; detailed report on the content to be supplemented or amended, and other related documents. The filing organization must take responsibility for the accuracy and truthfulness of the dossier;

c) The management agencies specialized in telecommunications receive and consider the validity of the dossiers within 10 working days from the date of receipt, appraise and submit the dossier to Minister of Information and Communications for consideration of the amendment and supplement to the contents of the license within 30 working days after receiving the valid dossier. Where it is necessary to consult the agencies and organizations involved, this period may be extended but not exceed 60 working days after receiving the valid dossier. In case of refusal to grant the amended and supplemented license, the management agencies specialized in telecommunications shall reply in writing stating the reasons for the refusal and the requirement to be observed to the organization which have demanded amendments or supplement to the content of the license.

a) Organization that has been granted a license for installation of telecommunication cables in the sea want to renew the license must send five sets of dossier for the extension to the specialized management agencies in telecommunications for at least 90 days before the license expires and must take responsibility for the accuracy and truthfulness of the dossier. A dossier of application for extension include: Application for license renewal according to the form issued by the Ministry of Information and Communications, a report on the implementation of the license;

b) The management agencies specialized in telecommunications receive and consider the validity of the dossiers within 10 working days from the date of receipt, appraise and submit the dossier to Minister of Information and Communications consider whether or not extend within 30 working days after receiving the valid dossier. Where it is necessary to consult the agencies and organizations involved, this period may be extended but not exceeding 60 working days from the date of receiving the valid dossier. In case of refusal to extend the license, the management agencies specialized in telecommunications shall reply in writing stating the specific reasons to the organization that request a license renewal.

Article 26. Granting, amending, supplementing, extending the license to set up private-use telecommunication network

1. Granting license for establishing private-use telecommunication network

Organizations applying for a license to establish its own telecommunication network send three sets of dossier to the specialized management agencies on telecommunications and shall take responsibility for the accuracy and truthfulness of the dossier. A dossier of application for a license includes:

a) An application for a license to set up its own telecommunication network using the standard form issued by the Ministry of Information and Communications;

b) A certified copy of the decision of establishing and operating license or certified copy of certificate of business registration of the organization requesting the license;

c) A certified copy of the charter, documents defining the general organizational structure or forms of association, joint activities between the members (if any);

d) A scheme to set up the network, which clearly states: The purpose of establish the network, network configuration, type of equipment, service to be used, members of the network (if any); scope of operation, technology to be used, frequency, code, telecommunication digital repository proposed to use (if any); equipment and technical or professional measures to ensure the information safety and security.

2. Deadline and process for handling of a dossier

Management agencies specialized in telecommunication receive and consider the validity of the dossier within 10 working days from the date of receipt, evaluate and consider to grant or submit the dossier to the Minister of Information and Communications for consideration to grant a license within 30 working days after receiving the valid dossier. In case of refusal, the management agencies specialized in telecommunications shall reply in writing stating the reasons for refusal to the organization. Where problems arise requiring further verification, the grant period may be extended but not exceed 45 working days from the date of receiving the valid dossier.

For the dossier to establish a private-use telecommunication network of diplomatic missions, foreign consulates and representative offices of international organizations in Vietnam that are eligible for the consular and diplomatic privileges and immunities, the Ministry of Information and Communication shall consider to grant a license on the basis of the written opinion of the Ministry of Foreign Affairs, Ministry of Public Security.

3. Amending or supplementing the license

a) During the period of validity of the license, the licensed organization send three sets of dossier demanding an amendment and supplement to the content of license by mail, or send directly or by another form of regulatory body specialized in telecommunication of any change of name of the licensed organization, a list of members of the network, network configuration, network operation range, type of the provided service.

In case of change of address of head office, the licensed organization is not required to perform procedures for amending the telecommunication license, but must notify the licensing agency within 30 days after the official date of change.

b) A dossier demanding amendments or supplements to the license include: Application for amendment and supplement to the license according to the form promulgated by the Ministry of Information and Communications; detailed description of the content that is expected to be amended and supplemented; other documents relating to the amendment and supplementation of the content of the license;

c) The management agencies specialized in telecommunications receive and consider the validity of the dossier within 5 working days from the date of receipt, evaluate and consider to grant a license for modification, or to submit the dossier to the Minister Ministry of Information and Communications for consideration to grant a license for amendment or supplement within 30 working days after receiving the valid dossier. In case of refusal, the management agencies specialized in telecommunications shall reply in writing stating the reasons for refusal to organizations requesting licensing.

4. Renewal of the license

a) To order to extend the license, the organization that have been granted a license to setting up its own telecommunication network must submit three sets of dossier to the specialized management agencies in telecommunications at least 30 days before the license expires and must take responsibility for the accuracy and truthfulness of the dossier;

b) A dossier requesting for the extension of the license comprise application according to the form issued by the Ministry of Information and Communications, a report on the implementation of the license;

c) The management agencies specialized in telecommunications receive and consider the validity of the dossier within 5 working days from the date of receipt, evaluate and consider the extension or submit the dossier to the Minister of Information and Communication to consider the extension within 30 working days after receiving the valid dossier. In case of refusal, the management agencies specialized in telecommunications shall reply in writing stating the reason to the requesting organization.

Article 27. Grant, extend the license of testing telecommunication service and network

1. Grant a license for testing

Organizations want to test telecommunication networks and services must submit three sets of dossier to the specialized management agencies on telecommunications and shall take responsibility for the accuracy and truthfulness of the dossier. The dossier includes:

a) An application for a license for establishing and testing the telecommunication network and for providing telecommunication service in the form issued by the Ministry of Information and Communications;

b) Scheme for testing telecommunication services and networks clearly specifying: The purpose, scope and scale of investment, trial duration; network configuration, type of service, cooperator(s) that participate in the test (if any) allocated charges (if any) frequencies, and the digital repository requested to be tested (if any) the terms and conditions to ensure the interests of users, if after the deadline to provide testing services, the enterprise does not officially provide the services.

2. Deadline and process for handling of a dossier

Management agencies specialized in telecommunication receive and consider the validity of the dossier within 5 working days from the date of receipt, evaluate and consider to grant or submit the dossier to the Minister of Information and Communications to consider the grant within 30 working days after receiving the valid dossier. In case of refusal, the management agencies specialized in telecommunications shall reply in writing stating the reasons for refusal to grant to the organization that demand the license to test.

3. Renewal of the license

a) In order to renew the license, the organization that has been granted the license to test telecommunication networks and services must submit three sets of dossier to the specialized management agencies in telecommunications at least 30 days before the license expires and must take responsibility for the accuracy and truthfulness of the dossier. A dossier of application for renewal includes: a request for extension according to the form issued by the Ministry of Information and Communications, a report on the implementation of the license;

b) The management agencies specialized in telecommunications receive and consider the validity of the dossier within 5 working days from the date of receipt, evaluate and grant the extension or submit to the Minister of Information and Communication to evaluate to grant a renewal within 30 working days after receiving the valid dossier. In case of refusal, the management agencies specialized in telecommunications shall reply in writing stating the reasons for refusal to the renewal-requesting organization.

4. The trial period ends, the organization that has been granted shall review and complete the trial record and report test results to the specialized management agencies on telecommunications.

5. After the trial period, the granted organization want to exploit officially telecommunication networks, telecommunication services should request a grant of telecommunication license.

Article 28. Regrant a telecommunication license

Where telecommunication license is lost, torn, burnt or destroyed in some other way, the granted organization must submit an application for regranting a telecom license in the form issued by the Ministry of Information and Communications to the specialized management agencies on telecommunications. The management agency specialized in telecommunication shall consider to regrant or submit the application to the Minister of Information and Communications for review the new license-regranting possibility within 5 working days from the date of receiving the application for license. The regranted organization shall pay fees for the regranted license as regulated.

Article 29. Telecommunication revenue

1. Telecommunication revenue includes sales of specialized telecommunication goods and sales of telecommunication services.

2. Turnover of specialized telecommunication goods is revenue earned from the trade of specialized telecommunication goods specified in Clause 1 of Article 10 of this Decree that is reflected in the accounting books of the telecommunications enterprise.

3. Telecommunication services revenue is revenue earned from the telecommunication services trading stipulated in Article 9 of this Decree that is reflected in the accounting books of telecommunication enterprises, including:

a) Turnover from charge applied to users of telecommunication services;

b) Revenue from charge payment difference among telecommunication enterprises;

c) Revenue from international payment difference between the telecom enterprise and foreign partners;

d) Other revenues as defined by the Ministry of Information and Communications.

4. Turnover of telecommunication services specified in Clause 3 of this Article are used to determine the market share of telecommunication enterprises, to calculate the contribution of telecommunication enterprises to Vietnam public-utility telecommunication service Fund and pay charge for rights as to telecommunication activities.

Article 30. Charge for right to operate telecommunication

1. Charge for right to operate telecommunication is determined according to Clause 1, Article 41 of the Telecommunication Law to implement the State s policy on telecommunications in each period and to ensure cost recovery for the management of telecommunications. The paid amount of telecommunication operation right charge is accounted into the business cost of organizations or enterprises.

2. Telecommunication license-granted organization is obliged to pay charges for rights as to telecommunication activities on the following principles:

a) Enterprises that are granted a license to establish public-utility telecommunication network: pay annually at the fixed rate, depending on the type of telecommunication network, the scope and scale of telecommunication networks, the number and value of telecommunication resources needed to allocated to establish the networks and the level of use of space, ground, underground, river bed and sea bed to build passive telecommunication technical infrastructure;

b) The enterprise that has been granted to provide telecommunication services: pay annually by percentage of turnover of telecommunication services specified in the license, the maximum payment must not exceed 1% of revenue of telecommunication services, but it is not lower than a fixed rate depending on the service that was licensed to provide and the number and value of telecommunication resource needed to be allocated;

c) Organizations that have been licensed to establish private-use telecommunication network, the license to test telecommunication services and networks: pay once at the fixed rate for the entire duration of the license;

d) Organizations that are licensed to install telecommunication cables in the sea: pay once at the fixed rate for the entire duration of the license and for each entry for survey, installation, repair and maintenance of cable by a ship.

3. Telecommunication-granted license organizations or enterprises must pay in full and on time charges for right to operate telecommunication as notified by the licensing agency.

4. Ministry of Finance shall lead and coordinate with the Ministry of Information and Communications defined or ask a competent state agency to detail collection rates, mechanism for collection and payment, management and use of charges for right as to telecommunication operation.

Chapter 5.

RESOURCES, TECHNICAL NORM, QUALITY AND TELECOMMUNICATIONS TARIFF

Article 31. Allocating frequency bands, quantity of telecommunication subscribers

1. To ensure that wireless electric frequency and telecommunication digital repository are used effectively, the band, quantity of telecommunication subscribers shall only be allocated to enterprises licensed to establish the following public-utility telecommunication network:

a) Ground fixed telecommunication network set up throughout their region or country;

b) Ground mobile telecommunication network established throughout the country;

c) Satellite fixed telecommunication networks;

d) Satellite mobile telecommunication networks.

2. Enterprises providing telecommunication services in the form of resale of the services are allowed to subrent telecommunication subscriber number of the enterprises have been allocated the number of telecom subscriber.

3. Ministry of Information and Communication and regulate and guide the allocation of frequency band, the number of telecom subscribers for licensed organizations to set up their own telecommunication networks.

Article 32. Changing telecommunication subscriber number

1. Telecommunication subscriber number is a sequence of digits (or characters) which indicates the unique terminals of the telecommunication network and includes the necessary information to route calls to that endpoints.

2. Changing telecommunication subscriber number is change in length, the structure of telecom subscriber numbers that are being used on telecommunication networks.

3. The change of telecommunication subscriber number shall be done in the following cases:

a) To increase the capacity of telecommunication subscriber number to meet the development needs of the subscriber;

b) To ensure meeting the requirements of management and exploitation of the networks and providing efficiently telecommunication services;

c) To adjust, supplement, modify the national telecommunication digital repository plan to meet requirements for change in technology and change in telecommunication development policy;

d) Other cases prescribed by Ministry of Information and Communications.

4. When changing telecommunication subscriber number, telecommunication enterprises shall:

a) Develop and implement plans for change of telecommunication subscriber number of their enterprise in line with the planning of the telecommunication digital repository or the plan for changing subscriber number approved by the Ministry of Information and Communications;

b) Notify of change of telecommunication subscriber number on the mass media at least 60 days prior to the change of telecommunication subscriber number;

c) Guide users of telecommunication services about the way to dial after the change of telecommunication subscriber number;

d) Coordinate with other telecommunication enterprises to change telecommunication subscriber number;

e) Implement technical measures to minimize the loss of contact (if any) before, during and after the change of telecommunication subscriber number;

e) Report in writing to the management agency specialized in telecommunication on the results of changing the telecommunication subscriber.

5. Telecommunication enterprises are not obliged to compensate for direct damages or resources that are not obtained due to the change of telecommunication subscriber number.

Article 33. Process of change of telecommunication subscriber numbers

1. Changing telecommunication subscriber number without changing the length and structure of the telecommunication subscriber number:

a) In the case where a telecommunication enterprise change less than 10,000 telecommunication subscriber number that have been granted to subscribers within a province or centrally-affiliated city without changing the length and structure of the telecommunication subscriber number and ensure conformity with the planning of the national telecommunication numbering: Telecommunication enterprises shall change telecommunication subscriber number in accordance with Clause 4 of Article 32 of this Decree and report to the management agencies specialized in telecommunication;

b) In the case where the telecommunication enterprises change over 10,000 telecommunication subscriber number that have been granted to telecommunication subscriber or the scope of change of the number within two provinces or centrally-affiliated cities or more, but not change the length, the structure of telecommunication subscriber number and is consistent with the planning for national telecommunication numbering: Telecommunication enterprises shall send dossiers to the specialized management agencies in telecommunications at least 90 days before the date of changing telecommunications subscriber number and change telecommunication subscriber number only after obtaining written approval of the management agencies specialized in telecommunications.

c) A dossier requesting change to telecom subscriber number include: application for changing of telecom subscriber number in the form issued by the Ministry of Information and Communications; the plan to change the telecommunication subscriber number, which clearly indicate the scope of change, number of subscribers to be changed, the expected timing for changing the number, technical plans, including plans for testing the implementation of the change of number, measures to limit the loss of contact during and after process of change;

d) A specialized management agency in telecommunications receive and process dossiers mentioned at Point c of this Clause, within 30 working days after receiving the valid dossier. In case of disapproval of the change, the management agencies specialized in telecommunications shall notify in writing the reasons for the enterprise.

2. Changing telecommunication subscriber numbers with changes to the length and structure of the telecommunication subscriber numbers:

Management agency specialized in telecommunication is obliged to create a plan for changing telecommunication subscriber numbers and submit the same to the Minister of Information and Communications for approval, arrangement and guidance of the implementation of telecommunication enterprise with respect to the approved plan for changing telecommunication subscribers.

Article 34. System of technical norm of telecommunications and wireless electric frequency

System of technical norm of telecommunications and wireless electric frequencies include technical norms on:

1. Terminals.

2. Network equipment.

3. Equipments to measure charges.

4. Telecommunication network connections.

5. Telecommunication services.

6. Passive telecommunication technical infrastructure.

7. Quality of emission of wireless electric equipment.

8. Wireless electric radiation safety of wireless electric equipments, equipments applying radio waves, radio stations.

9. Electromagnetic compatibility safety of wireless electric equipment, telecommunication equipment, information technology equipment, equipment applying radio waves and electronics-electrical equipments.

10. Installation, operation, and measurement and testing of network equipment, passive telecommunication technical infrastructure, management of telecommunication services.

11. Other technical norms of telecommunications as specified by the Ministry of Information and Communications.

Article 35. Telecommunications quality management

1. The assessment of conformity with technical norms for equipment, networks, services and passive telecommunication technical infrastructure is conducted as follows:

a) terminal equipment, wireless electric equipment, equipment applying wireless electric waves, information technology equipment, electrics-electrical equipment in the list of telecommunication equipment, wireless electric equipment, equipment applying wireless electric waves, information technology equipment, electronic-electrical equipment is potentially unsafe issued by the Ministry of Information and Communications must be carried out procedures to certify conformity with regulation or release a statement of conformity for each category of equipment and use conformity mark before being circulated in the market or connected to public telecommunication networks;

b) Passive telecom technical infrastructure, telecommunication network connection, telecommunication services in the List of telecommunication services and networks requiring quality control issued by the Ministry of Information and Communications before being provided or used must carry out procedures to announce the conformity with as prescribed.

2. Testing of telecommunication equipment is the test, certification or announcement of conformity with telecom technical norms of telecommunication equipment that were installed prior to functioning. The testing of telecommunication equipment is as follows:

a) Network equipment in the list of telecommunication equipment requiring expertise issued by the Ministry of Information and Communications before putting into operation must be conducted the test and certification of compliance or test and announce the accordance with the regulations;

b) Measuring device to calculate charge in the list of telecommunication equipment requiring the testing issued by the Ministry of Information and Communications before putting into operation must be carried out the test procedures and certification of conformity by regulations;

c) Wireless electric station in the List of radio stations requiring a safety testing of radiation safety issued by the Ministry of Information and Communications before being used must be performed the test procedures and certification of conformity or test and announce the accordance with the regulation.

3. Ministry of Information and Communications is responsible for:

a) Specifying the operation of technical norm conformity assessment and testing of telecommunication equipment;

b) Appoint and recognize conformity certification organization, units for measuring and testing, testing laboratories in the field of telecommunications and radio frequencies.

Article 36. Principles for the promotion of telecommunication services and specialized telecommunication goods

1. Telecommunication enterprises are not allowed to conduct promotion with purposes of unfair competition in the telecommunications market, dumping telecommunications service, specialized telecommunication goods.

2. Telecommunication enterprises shall ensure the quality of telecommunication services and specialized telecommunication goods promoted in accordance with the provisions of law on the management of standards, technical norms, quality of telecommunication services and specialized telecommunication goods.

3. Telecommunication enterprises are not allowed to conduct promotion by reducing charges of telecommunication services, reducing the price of specialized telecommunication goods with respect to telecommunication services, specialized telecommunication goods evaluated specifically by the State. Telecommunication enterprises are not allowed to conduct promotion by reducing charges of telecommunication services, reducing the price of specialized telecommunication goods to below the minimum level of specialized telecommunication services, telecommunication goods that the State prescribes a price range or a minimum price.

4. Telecommunication services marks, specialized telecommunication trademarks are specified in the List of telecommunication services, the List of specialized telecommunication goods issued by the Ministry of Information and Communications.

5. The material value used for promotion for the unit of specialized telecommunication goods or services must not exceed 50% of the price of the units of specialized telecommunication goods or services promoted before promotion period except the following cases:

a) Providing telecommunication services, deliver samples of specialized telecommunication goods to customer free of charge;

b) Providing telecommunication services, offer specialized telecommunication goods to customers free of charge, without associating to the provision of telecommunication services and specialized telecommunication goods;

c) Providing telecommunication services, selling specialized telecommunication goods enclosed with contest entry forms for customers to choose the prize winners according to announced rules and prizes.

d) Providing telecommunication services, selling specialized telecommunication goods accompanied by participation in promotions of chance;

e) Organizing frequent customer program.

6. The total maximum value of services or goods used for sales promotion should not exceed 50% of the total value of telecommunication service, specialized telecommunication goods promoted except in the form of offering sample promotional goods or providing sample telecommunication services to customers to try free of charge.

7. Form of discount promotion for telecommunication services and specialized telecommunication goods include:

a) Providing telecommunication services or selling specialized telecommunication goods at price that is lower than before;

b) Using units of telecommunication services, specialized telecommunication goods for the promotion of the same telecommunication services and goods as their prices remain unchanged;

c) Promotion in the form of providing telecommunication services, selling specialized telecommunication goods accompanied by the coupon of use for the telecommunication services, coupon for the very specialized telecommunication goods.

d) Other forms prescribed by the Ministry of Information and Communications.

8. Total time for telecommunication enterprises to implement promotional programs by reducing prices for telecommunication services marks, specialized telecommunication trademarks in accordance with provisions by the Ministry of Information and Communications should not exceed 90 days in a year; a promotion must not exceed 45 days.

9. The total duration of the promotion for a telecommunication services marks, specialized telecommunication trademarks when making promotions to provide telecommunication services, sell specialized telecommunication accompanied by the participation in promotions of chance must not exceed 180 days a year, a promotion must not exceed 90 days.

Article 37. Promotion management for telecommunication services and specialized telecommunication goods

1. Only applying to licensed telecommunication enterprises for the promotion of telecommunication services and specialized telecommunication goods.

2. Telecommunication enterprises can directly organize the promotion or hire traders of promotion services to conduct promotion on specialized telecommunication goods or services of enterprises under agreements with such enterprises. In case of hiring traders who trading promotion services to conduct promotion on services and specialized telecommunication goods for enterprises, telecommunication enterprise, telecommunication enterprises must ensure the promotion is done in accordance with promotions program has been announced or registered with the State management agency for promotion.

3. Agency that trade the specialized telecommunications goods of telecommunication enterprises must conduct promotions in accordance with promotion program that telecommunication enterprises have announced or registered with the State management agency for promotion.

4. When implementing promotions for telecommunication services and specialized telecommunication goods, telecommunication enterprises must notify the management agency specialized in telecommunication and local Department of Information and Communication. Before implementing promotional programs by reducing prices for services in the List of telecommunication services requiring registration of charges, telecommunication enterprises must register with the management agencies specialized in telecommunications.

5. Telecommunication enterprises shall take responsibility to report regularly and irregularly upon request by specialized management agencies on telecommunications as to list and content of the promotion program of telecom services of the enterprise.

6. Ministry of Information and Communications is responsible for:

a) Regulating the list, units, forms of promotion, the maximum value of promotional material applied to each unit of telecommunication services and specialized telecommunication goods, the total value of the service, goods for sales promotion in a promotional program aimed at ensuring fair competition in the market of telecommunication services;

b) Leading and coordinating with the Ministry of Industry and Trade to regulate promotion for the provision of telecommunication services and specialized telecommunication goods.

7. Management agency specialized in telecommunication have the right to suspend the implementation of the whole or part of promotion program of telecommunication enterprises if there is any violations of regulations on the promotion of telecommunication services and goods specialized telecommunications is detected.

Article 38. Management of the charges of telecommunication services

1. Form of charge management

a) To decide the charges: the Ministry of Information and Communications issued rates, rate range of public-utility telecommunication services, and the connection charges;

b) Registration of charges: Telecommunication enterprises dominating the market prior to the promulgation and application rates of market dominant telecommunication services is obliged to register the charges with the management agencies specialized in telecommunications;

c) Notification of the charge: telecommunication enterprises by themselves specify charges of telecommunication services outside the above charges at point a, b of this Clause and shall notify the management agency specialized in telecommunication.

2. Exemptions from public utility charges are as follows:

a) Telecommunication enterprises shall take responsibility to develop a charge reducing/exempting plan for serving public-utility telecommunication missions and submit it to the Ministry of Information and Communications;

b) Ministry of Information and Communication shall decide the charge reducing/exempting plan for serving public-utility telecommunication missions after getting an agreement with the Ministry of Finance;

c) Ministry of Finance is responsible to ensure a fund in compensation for telecommunication enterprises in carrying out the public-utility telecommunication missions under the plan to reduce/exempt charges that has been decided at Point b of this Clause.

3. Telecommunication enterprises are not allowed to provide telecommunication services with too low rate compared with the average rates in the market of telecommunication services in accordance with provisions by Ministry of Information and Communications.

4. In addition to the provisions of Clause 3 of this Article, the telecommunication enterprise dominating markets are not allowed to release a rate of telecommunication services lower than its cost.

5. In the case where telecom service charges increase or decrease unreasonably compared with the cost, increase or decrease abnormally compared with average rates resulting in an unstableness in the telecommunications market, causing harm to the legal rights and interests of users of telecommunication services, other telecommunication enterprises and the State, Ministry of Information and Communications is obliged to perform or direct the management of specialized telecommunications to implement measures to control, stabilize following telecommunication charges:

a) Prescribing a maximum charge, minimum charge, charge range of telecommunication services;

b) Controlling the form factor of telecommunication services charges;

c) Disclosing information about charges;

d) Establishing mechanisms for managing telecommunication charges in each period;
e) Deciding suspension of implementation of the unreasonable telecom service charges decided by telecommunication enterprises

f) Deciding organization of teams of inspector and/watchdog to observe the compliance with state regulations on the management of telecommunication services charges.

Article 39. Professional issue report of telecommunication

1. Ministry of Information and Communication shall define mechanism and issue forms for reporting telecommunications professional issue.

2. Telecommunication enterprises shall:

a) Report regularly or irregularly upon requirement for professional telecommunications to management agency specialized in telecommunication and shall take responsibility for the accuracy and timeliness of content and figures of the report;

b) Prove the accuracy of content and figures of the report as required;

c) Provide online content and figures of the report to the device to access information upon request by management agency specialized in telecommunication.

3. Management agency specialized in telecommunication is obliged to use the content and figures of the report on professional telecommunication to publish statistical reports, analyses, manage the telecommunication services market

Chapter 6.

TELECOMMUNICATIONS WORKS

Article 40. Planning of passive telecommunication technical infrastructure

1. Planning of passive telecommunication technical infrastructure includes:

a) Planning construction of important telecommunications works relating to national security, points for supply of public-utility telecommunication services of telecommunication enterprises, which specify the size, scope, location for the construction and installation of this work;

b) Planning peripheral network which defines the requirements, conditions for the installation location for antenna pole, line and direction for building the suspension pole, sewer, tank, cable ducts

2. Important telecommunication works relating to national security is the telecommunication work of special importance for the entire operation of the national telecommunication network and having direct impact on socio-economic development, security, defense of the country, including:

a) The work of international telecommunication transmission system and inter-provincial long distance;

b) The Work for system of management, control, routing, switching international telecommunications, region and inter-province long distance;

c) The work for system of transmission, broadcast of television/radio signal throughout the nation, region and province or cities under central authority;

d) Other telecommunication works specified by the Prime Minister.

3. A point for supplying the public-utility telecommunication services is location directly managed and exploited by telecommunication enterprises to provide telecommunication services to users of services, including point to supplying services with their staff being present and the point to supplying the service without any staff.

4. Provincial People s Committee is obliged to formulate, approve and publish planning of passive telecommunication technical infrastructure every 5 years, which is adjusted or supplemented annually and incorporate the content passive telecommunication technical infrastructure planning in traffic planning, construction planning with ratio of 1/2000, 1 / 500 of the locality.

5. Based on the planning of the national telecommunication development and planning of passive telecommunication technical infrastructure in the area, telecommunication enterprises shall be responsible for planning the construction of passive telecommunication technical infrastructure in the locality of enterprise and submit the same to provincial People s Committee for approval

6. Ministry of Information and Communication shall lead and coordinate with the Ministry of Construction to guide in detail the activities to create the planning of passive telecommunication technical infrastructure.

7. Ministry of Transport, Ministry of Construction shall coordinate with the Ministry of Information and Communications and the provincial People s Committee to introduce the content of related passive telecommunication technical infrastructure into traffic planning, construction planning within the region and the nation.

Article 41. Granting a license to construct a passive telecommunication technical infrastructure

1. Before starting the construction of passive telecommunication technical infrastructure, investors must have a building permit, except the following cases:

a) Line of column used for hanging telecommunication cables, system of antenna poles that are not in urban areas and are consistent with the approved planning of telecommunication technical infrastructure of the enterprise and the approved project of investment for construction;

b) Antenna pole that is not bulky in accordance with the Ministry of Information and Communications and is installed in and on top of buildings in urban areas without changing the architecture, structural strength and safety of the building, surrounding landscape and environment and is in line with the approved planning of telecommunication technical infrastructure of the enterprise;

c) A point for supplying the public-utility telecommunication services without staff that is included in the planning of approved passive telecommunication technical infrastructure of enterprise and have the approved sample design;

d) A passive telecommunication technical infrastructure work that was installed to provide telecommunication services in emergencies;

e) Other passive telecommunication technical infrastructure works as specified by the Ministry of Information and Communications.

2. Ministry of Information and Communication shall lead and coordinate with the Ministry of Construction to specify and guide the licensing of construction of passive telecommunication technical infrastructures.

3. Provincial People s Committees within their authority shall review, amend, supplement or cancel the local regulations that is no longer appropriate concerning planning, processes and procedures for granting a permit to construct a passive telecommunication technical infrastructure work; direct the coordination among relevant agencies such that enterprises can use land and construct of passive telecommunication technical infrastructure work in the locality based on the delicacy of urban landscape and the conformity with the planning for construction in the area.

Article 42. Designing, constructing and using telecommunication works

1. Organizations or individuals investing in construction of buildings with many residence (apartments, office buildings, hotels) is obliged to design and install system of telecommunication cables, access points within the building. Rental from usage of a network of cables within the building is determined on the basis of costs.

2. Organizations or individuals investing in construction of buildings that have many uses (apartments, office buildings, hotels), public buildings is obliged to allocate area for telecommunication enterprises to install antenna pole on the roof of the building, install equipment for receiving, broadcasting within the building or within public buildings if the installation is technically feasible.

3. Investors that construct traffic work, industrial zones, export processing zones, high-tech zones, and urban areas are responsible for allocating land for telecommunications enterprise to construct passive telecommunication technical infrastructure works.

4. The use of passive telecommunication technical infrastructure works is on principles that service users are free to choose telecommunication enterprises, promoting competition in network establishment and telecommunication service provision of telecommunications enterprises in buildings, public buildings, traffic work, industrial parks, export processing zones, high-tech zones, urban areas.

5. Where telecommunication enterprises do not reach an agreement with relevant organizations or individuals on the provisions in Clauses 1, 2, 3, 4 of this Article, the enterprises may require provincial People s Committees to consider and resolve, and also notify the management agency specialized in telecommunication.

6. People s Committees at all levels shall direct the settlement and handle timely cases of unlawful hindering, disturbing, destroying the building and use of passive telecommunication technical infrastructure in the area.

Article 43. Jointly using technical infrastructure

1. Investor of technical infrastructure work shall be responsible for planning, designing, investing or constructing technical infrastructure, ensuring the joint use for installation of telecommunication equipments and cables in accordance with the approved planning for passive telecommunication infrastructure.

2. Telecommunication cables are allowed to be installed along roads, streets, pavements, bridges, culverts and traffic roads. The Ministry of Transport guides organizations or individuals about management and exploitation traffic work supplying for telecommunication enterprises to jointly use traffic technical infrastructure for installation of telecommunication cables.

3. Telecommunication cables are permitted to install at the electric poles in the regions where the telecommunication cables cannot be put underground or can not build separate poles for telecommunications cableon the basis of ensuring applied technical standards. Ministry of Trade shall guide the Vietnam Electricity Corporation and organizations or individuals managing and exploiting the system of electric poles to let telecommunication enterprises use the same poles for installation of telecommunication cables.

4. Telecommunication cables, telecommunication equipment is permitted to install in the underground public works, underground public works, underground technical source work, the underground portion of the construction works on the ground, line works, cables, underground technical pipeline, ditches and technical tunnels.

5. Ministry of Construction shall guide organizations or individuals managing, using and exploiting underground works to let telecommunication enterprises to share technical infrastructure for installation of telecommunication equipments and cables.

6. Rental price for a public technical infrastructure work to install the telecommunication equipments and cables are determined on the basis of costs in order to promote the joint use of technical infrastructure of traffic engineering, energy supply, public lighting, water supply, sewerage, telecommunications and other technical infrastructures.

7. Ministry of Finance shall lead and coordinate with the related sectors/ministries to promulgate mechanisms and principles for control and management of rental price of public technical infrastructure.

8. Provincial People s Committees are obliged to manage, specify and organize the implementation of the joint use of telecommunication infrastructure, other technical infrastructures at their localities.

Article 44. Putting underground and embellishment of telecommunication cables

1. Provincial People s Committee shall lead and coordinate with the Ministry of Information and Communications to make and organize the implementation of the plan to burry and adjust telecommunication cables in their locality.

2. Organizations or individuals participating in putting underground and embellishment of telecommunication cables shall get investment incentives or supports in accordance with the law on investment.

3. Telecommunication enterprises are obliged to participate, coordinate and contribute funds to implement the putting underground and embellishment of their telecommunication cables.

4. The putting underground and embellishment of telecommunication cables is done on the principle of ensuring that joint usage of technical infrastructure works is maximal, in accordance with technical norms in the field of telecommunications and construction.

Chapter 7.

IMPLEMENTATION PROVISIONS

Article 45. Effect of implementation

1. This Decree takes effect as from June 1, 2011.

2. This Decree replaces Decree No. 160/2004/NĐ-CP September 3, 2004 by the Government detailing the implementation of some articles of the Ordinance on Post and Telecommunications of telecommunications; regulations on investment in telecommunications in Decree 121/2008/ND-CP of December 3, 2008 by the Government on investment activities in the field of post and telecommunications; telecommunications regulations in Decree 97/2009 / ND-CP on the management of Internet services, management of the content of information on the Internet.

3. Within two years from the date this Decree takes effect, enterprises that have been granted a license of telecommunication inconsistent with the provisions of this Decree shall perform procedures to apply for new license or license exchange under the guidance of Ministry of Information and Communications.

4. Ministry of Information and Communications to coordinate with relevant sectors/ministries to ask the Prime Minister to issue a list of telecommunication enterprises and the duration for those telecommunication enterprises to restructure the ownership of capital of the organization orindividuals to ensure implementation of the provisions in Clause 1, Article 3 of this Decree.Telecommunication enterprises listed by the Prime Minister shall be responsible for making a plan and implementing the restructuring of the capital ownership of organizations or individuals in accordance with provisions by the Prime Minister.

Article 46. Organization of implementation

Minister of Information and Communications is responsible for guiding and supervising the implementation of this Decree.

The ministers, heads of ministerial-level agencies, heads of Governmental agencies, President of Provincial People’s Committee or President of centrally-affiliated cities and relevant organizations or individuals shall be responsible for implementing this Decree.