TELECOMMUNICATION UNIVERSAL SERVICE IN VIETNAM Ministry of Posts and Telematics, S.R Vietnam 2019年2月22日 MPT-S.R.Vietnam

OUTLINES ___________________________________________________________ - Overview of Vietnam’s Telecommunication market - Major programs and intiviatives - Tele-culture centers - Universal service fund 2019年2月22日 MPT-S.R.Vietnam

General information Population: 82 million people, 75% in rural and mountainous areas, with low income ¾ of the area are mountainous and high lands 2019年2月22日 MPT-S.R.Vietnam

Overview of Vietnam’s Telecom market Before 1996: one operator – VNPT (provision of postal and telecom services, production of equipment…) At present, 05 other facility-based operators have been licensed: VIETEL, VPT, SPT, Hanoi Telecom, VISHIPEL;06 IXPs and 15 ISPs have been licensed  strong competition among service providers VNPT is the incumbent operator, providing every services of more than 90% of market share. 2019年2月22日 MPT-S.R.Vietnam

Overview of Vietnam’s Telecom market (cont.) Total 11 million subscribers; penetration rate 13%; fixed telephone:6 million; mobile: 5 million; 97% of the villages have access to telephone sevices. Teledensity in urban: 35%, in the rural only 3,5%, in remote areas: 2%  big gap. 2019年2月22日 MPT-S.R.Vietnam

Major programs and initiatives Tele-culture centers in the villages Internet to schools (end of 2003) ICT for 20 million young people in rural areas Local IT industry to provide low cost PC to the poor. 2019年2月22日 MPT-S.R.Vietnam

Tele-culture centers in the villages By end of 2004: 7076 centers Services: telephone, postal services, Internet, information services (liberary, newspaper, books …) Funding: till now: incumbent operator (VNPT), universal service fund (newly established) 2019年2月22日 MPT-S.R.Vietnam

Tele-culture centers in the villages Supporters: Local authorities (location, staff…), Ministry of Culture and Information (relevant information and local content) Youth Union: volunteers, training, awareness… Enterprises: (used) computers, instructors… Plans to involve: MARD, MoET (universities)… 2019年2月22日 MPT-S.R.Vietnam

Tele-culture centers in the villages Difficulties: Awareness (stimulating demand…) Affordability Funding Local content Human resources 2019年2月22日 MPT-S.R.Vietnam

USO policies and regulation The Ordinance on Posts and Telecommunications (10/2002) to speed up telecoms development in the rural and remote areas, with incentives and priorities for USO The Gov. Degree 160 specifies telecom networks and services, particularly on USO regulations Prime Minister’s Decision on Universal Service Fund 2019年2月22日 MPT-S.R.Vietnam

USO policies and regulation in Vietnam (cont.) MPT, on behalf of the Government, directly manages universal service fund and decides the allocation of the fund for specific universal service projects (by bidding…). To establish the Vietnam Public-utility Telecommunication service Fund - VTF to mobilize capital and manage the use of financial sources to implement the USO policy. 2019年2月22日 MPT-S.R.Vietnam

Total number of telephone subscribers 2019年2月22日 MPT-S.R.Vietnam

Telephone density 2019年2月22日 MPT-S.R.Vietnam

Policies to support the implementation of universal telecommunication services VAT Law 2003 (since January 2004): Universal telecommunication services are exempt from VAT. Domestic investment Law: Providers in areas with difficult socio-economic condition can be exempt from enterprise income tax. 2019年2月22日 MPT-S.R.Vietnam

The universal service fund Legal position: VTF is a non-profitable financial organization under MPT. VTF main duty: Mobilize financial resources for universal service projects (From the State budget, contribution of service providers, ODA, and other sources...) + Select and appraise telecom projects funded by VTF. + Supervise, evaluate the implementation of universal telecommunication service programs, plans and projects funded by VTF. 2019年2月22日 MPT-S.R.Vietnam

VTF (cont.) Contribution from service providers: + Mobile: 5% + International: 4% + Domestic long distance: 3% 2019年2月22日 MPT-S.R.Vietnam

VTF (cont.) VTF’s objectives: + Support service providers: provide loan for Telecommunication infrastructure development in remote areas; + Support the service users: Establish and maintain public access places in low-income areas; Reduce charge of terminal equipment installation and service access 2019年2月22日 MPT-S.R.Vietnam

Challenges Affordability Lack of funding Human resources Awareness 2019年2月22日 MPT-S.R.Vietnam

www.mpt.gov.vn www.vnpt.com.vn THANK YOU ! 2019年2月22日 MPT-S.R.Vietnam