USO in Vietnam: Public utility telecommunication services

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USO in Vietnam Public - utility
telecommunication services

• Mai Anh Hong
• Bureau of Ministry of Posts and Telematics
• of Vietnam

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Content

• Country profile
• Development of ICT
• Current status of USO
• USO policies and regulations in Vietnam

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Country profile

• Name Socialist Republic of Vietnam
• Position Vietnam is located in the center of
  the Southeast Asia
• Language Vietnamese (using Latin characters)
• Area 331,690 km2
• Capital Hanoi
• Population Approximation of 83.5 Milions
• Geographical
• - 64 provinces
• - 633 districts (of which 518 are in Rural
  areas)
• - 10,602 communes (of which 8,970 are in
  Rural areas)
• - 80,500 villages and hamlets in Rural areas
• Economy in 2005)
• - GDP per capita 640 USD
• - Economic growth rate 8.4

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Development of ICT

• 6 facility-based Operator have been licensed
• Vietnam Posts and Telecommunications Group (VNPT)
• Military Electronics and Telecoms Corp. (VIETTEL)
• Vietnam Power Telecom Company (EVN Telecom)
• Saigon Postel Stock Corp. (SPT)
• Hanoi Telecom Stock Company (Hanoi Telecom)
• Vietnam Electronics Communication Shipping
  Company (Vishipel)

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Development of ICT (cont.)
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Development of ICT (cont.)

• Infrastructure
• Switching system 3 Gateway-100 E1, 7 Toll-6000
  E1, nearly 3000 Tandem, Host, local exchanges
  with capacity of 7 Million numbers
• 3 Exchanges with NGN technology
• Transmission system
• International satellite ESs, maritime and land
  fiber optic cables with capacity of 1200Mbps and
  40 STM1.
• Domestic 50Gbps via satellite, fiber optic
  cables, micro waves
• Mobile networks 60BSC, 2500 BTS coverage all
  provinces and cities
• Access network varieties and reached nearly
  nation-wide coverage
• International Internet connection via US,
  Japan, Korea, Singapore, Hongkong (1,945 Gbps)

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Development of ICT (cont.)

• At May of this year
• Number of Telephone subscribers 18.47 millions
  and penetration rate is 22.25
• Number of Mobile phone subscribers 11.32
  millions
• Number of Internet users 12.5 millions (3.43
  millions Internet subscribers 290,500 ADSL
  subscribers), rate 15.08

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Current status of USO

• 75 of the population (83,5 millions) in rurals
  and mountainous areas with low income
• 75 of the eara is mountains and highlands
• Teledensity in urban 27, in the rural only
  3,5,
• even in many remote areas, it is only 2
• gt Its big gap in the level of universal
  services

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Current status of USO (cont.)

• Some major programs have archived their first
  targets
• 100 of commune nationwide equipped telephone at
  the end of 2005
• 100 of college and most secondary school had
  Internet access
• There are 17.400 post services including 7.688
  telecommunication commune center

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Current status of USO (cont.)

• Up to 2003
• VNPT provides services in most of the rural,
  remoteand mountains areas
• Sources of capital
• - Cross - subsidies in VNPT
• - New providers contribute to VNPT partially
  through interconnection charges

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USO policies and regulations in Vietnam

• The Ordinance on Post and Telecommunications
  (November, 2002)
• - The Government implement the policy on
  public-utility Telecommunication Services
• - Telecommunication service providers should
  implement public-utility telecommunication
  service provision.
• The Ministry of Post and Telematics (MPT)
• - Regulate public-utility Telecommunication
  Services
• - Control and manage implementation of
  public-utility Telecommunication Service
  provision of the providers.
• - Regulate charges of public-utility
  Telecommunication Services.

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USO policies and regulations (cont.)

• The Vietnam Public-utility Telecommunication
  Service Fund (VTF) was set up by the Government's
  Decision No. 191/2004/QD-TTg of November 8, 2004
• The main fuction of VTF is supporting the
  implementation of the State's policies on the
  provision of Public-utility telecommunication
  services in the whole the country
• VTF receives contributions from telecommunication
  service providers and mobilizes other financial
  sources to implement policy on public-utility
  telecommunication services
• Legal position VTF is a non-profitable financial
  organization under MPT 

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USO policies and regulations (cont.)

• Sources of capital of the Fund
• 1. Charter capital The Fund's charter capital at
  the time of its setting up is VND500 billion
  (US3.14 million)
• 2. Contributions of telecommunication
  enterprises
• a/ Contribution made in proportion to the
  revenues from service provision (excluding
  connection charges)
• - 5 of the revenues, for mobile
  telecommunication services.
• - 4 of the revenues, for international distant
  telephone service and international distant line
  subscription service
• - 3 of the revenues, for domestic distant
  telephone service and domestic distant line
  subscription service
• b/ The connection surcharges (if any) as
  prescribed by the MPT

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USO policies and regulations (cont.)

• On April 7, 2006 The Prime Minister signed this
  Decision No 742006/QD-TTG approving the program
  on the provision of public telecommunications
  services up to 2010
• The program aims to ensure that by 2010
• - The teledensity in areas covered by public
  telecommunication services will be over 5
  telephone sets/100 persons
• - All communes will have public phone booths
• - 70 of communes will have public Internet
  access points
• - Every citizen will get free access to
  mandatory telecommunications services

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USO policies and regulations (cont.)

• Under the program, public-utility
  telecommunications services include Universal
  services (standard telephone services and
  standard Internet access services)
• Mandatory services (emergency calls, fixed
  telephone number inquiries and other
  telecommunications services in service of the
  States emergency activities prescribed by
  competent authorities)
• Total fund for the program is around VND5.2
  trillion (US329.11 million)

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Contact Information
Please, email me at maianhhong_at_mpt.gov.vn