Increasing 3G rates is normal and 'hits' the rich

Minister Nguyen Bac Son: 3G rates are only 50% of the cost. This rate increase is mainly aimed at smartphone users.

This afternoon (November 20), answering questions from National Assembly delegates about "Do network operators increase 3G rates?"

Increase 3G rates source VOV

to compensate for the decrease in revenue while the quality has not improved, Minister of Information and Communications Nguyen Bac Son affirmed.

The Minister affirmed: The adjustment of 3G fees has created heat and public interest. The Vietnamese telecommunications market has developed strongly. Fees have hardly increased since its development, and have decreased every year. Recently, we have increased telecommunications fees. This is the general policy of the State, in accordance with current regulations and international commitments. "We cannot sell below cost" - the Minister affirmed.

When 3G services first come out, they always follow the same general rule: initial growth, saturation, and decline. In the first period, network operators have to reduce prices to attract subscribers, then gradually increase prices. However, we have been reducing prices for too long.

Minister Nguyen Bac Son said that the Prime Minister has signed Decision No. 32 to plan the telecommunications market until 2020. This decision requires gradually increasing telecommunications prices to ensure they are equal to and above cost in accordance with legal regulations.

In the recent period, our telecommunications prices were much lower than the world prices. Specifically, they were 34.9 times lower than the ASEAN bloc and 34-57% lower than the world. We only sold less than 50% of the cost price despite raising the price.

As of last September, network operators had over 90 million subscribers, of which only 19 million were using 3G. The 3G fee only includes upgrading the 3G data package (data transmission, internet).

In more than 1 month of increasing fees, Viettel reported a 20% increase in data revenue.

The Minister affirmed that increasing 3G rates is normal in a market mechanism that ensures healthy competition. Increasing 3G rates also has a social factor as all these networks are owned by the State. Increasing rates is also a contribution to the country. Telecommunications enterprises are also a group of enterprises that contribute a lot to the country. In 2012, VNPT contributed 7,300 billion VND, Viettel contributed 11,300 billion VND...

The Minister said that consumers also need to share with network operators because all telecommunications infrastructure and equipment are imported from abroad up to 80%. When we use Internet services, network operators must pay internationally. Network operators cannot pay high prices and sell at low prices, so network operators must share to gradually follow market prices.

At the same time, the Minister said that the price increase is targeting high-income earners who use smartphones.

Does this price increase affect OTT? The Minister believes that OTT is taking advantage of our telecommunications network to provide services. The State has no policy to prevent OTT. People still use OTT to make international and local calls and send data.

We accept this as a new development of science and technology, just as we accepted that the price of mobile phone services is increasing, but the price of services and market share of landline phones are decreasing. We accept the game to gradually manage it.

Currently, under the direction of the Prime Minister, the Ministry of Information and Communications is drafting documents to manage OTT in Vietnam, so that OTT businesses can share with Vietnam's network infrastructure and share income with telecommunications network operators.

“This fee increase is not only because of OTT but also according to the roadmap and law. OTT reduced the revenue of network operators in 2012 by about 20 billion USD, so OTT must be responsible to network operators and to society in the coming time” – the Minister emphasized.

Answering the question of when Vietnam will have 4G service, Minister Nguyen Bac Son said: By 2015, 4G will be applied in Vietnam. The Ministry of Information and Communications has licensed a number of enterprises to test this service. Currently, enterprises have invested about 2 billion USD in 3G but with the current number of subscribers, it is not enough to recover the capital./.

According to VOV