'Tightening' mobile information service promotions

The total maximum value used for promotion for mobile devices under 1 year must not exceed 10% of the total value of the service or goods.

The Ministry of Information and Communications is seeking comments on the draft Circular 'Regulating the maximum total value of services and goods for promotion (KM) in a KM program and the maximum material value of KM applicable to each telecommunications service unit and specialized telecommunications goods for nationwide terrestrial mobile information services'.

Illustration photo.

Accordingly, the total maximum value used for promotion in a program for postpaid mobile subscribers (TBDD) operating for over 1 year, or postpaid TBDD with total service revenue of 1 million VND or more; or prepaid TBDD switching to postpaid subscribers operating for over 1 year and with total service revenue of 1 million VND or more, must not exceed 50% of the total value of mobile information services and specialized mobile information goods being promoted.

The total maximum value used for promotions for mobile devices under 1 year must not exceed 10% of the total value of the service or goods.

Thus, this regulation will “tighten” more strongly the promotional programs for new customers. Meanwhile, the current regulation according to Decree 25/2011/ND of the Government detailing and guiding the implementation of a number of articles of the Telecommunications Law only limits the maximum promotional level to not exceed 50% but does not distinguish between new customers or long-term customers.

According to TNO