Suspected three network operators colluding to increase 3G rates

Increasing prices at the same time, with the same package with the highest price increase of up to 40%, many doubts are raised about the three mobile networks VinaPhone, MobiFone and Viettel colluding to increase 3G prices.

Network operators claim that 3G service prices are being sold at a loss and are much lower than cost, lower than other countries in the region. However, the specific cost and input costs have not been clearly announced by the network operators.

According to MobiFone representative, this network registered to increase 3G fee in writing on August 9, 2013, in which it proposed to increase the fee from September 1, 2013. Meanwhile, VinaPhone since the end of August has issued a document to adjust the fee and request to increase from September 15. After that, the Ministry of Information and Communications requested additional explanation and in early October, VinaPhone received approval from the management agency.

All three networks said that because there are two billing cycles, the 1st and 16th of each month, there are two options for adjusting the rates, October 1 and 16. Therefore, the businesses decided to choose October 16 to increase the rates, ensuring enough time for technical and communication preparation.

On the side of the Ministry of Information and Communications, Mr. Nguyen Duc Trung, Deputy Director of the Department of Telecommunications, said that the approval document was signed on the same day, October 4, so it may coincide with the price increase of businesses.

"It is unclear whether the businesses met together to come out at the same time or not, but the starting point from the Ministry was to issue the approval document on the same day," he said.

Regarding the question of whether the three enterprises that account for 97.3% of the market share and increase 3G prices to a maximum of 40% have signs of colluding to increase prices, violating the provisions of the Competition Law, Mr. Tran Anh Son, Deputy Director of the Competition Management Department (Ministry of Industry and Trade) said that the Department is currently in the process of collecting necessary information, based on the information received and discussing with the Ministry of Information and Communications, then it can make its own judgments.

Thus, the question of whether the above businesses have colluded to increase 3G rates or not will require the involvement of authorities to be able to conclude, although we know that this is relatively difficult.

Network operators also claim that 3G service prices are being sold at a loss and are much lower than cost, lower than other countries in the region. However, the specific cost and input costs have not been clearly announced by the network operators.

Deputy Director of the Telecommunications Department Nguyen Duc Trung said that according to statistics, 80% of the cost is currently calculated on infrastructure. Because businesses cannot produce equipment themselves, they import it. Therefore, in principle, the cost must be equivalent to that of other countries in the region.

“The difference between prices in Vietnam and the world can be from 2 to 10%. This figure is according to business reports and we will verify it,” said Mr. Trung.

According to VnEconomy - TH