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SIM cards of several telecom operators providing telecommunication services in Vietnam. Photo: Trong Dat

The Ministry of Information and Communications (MIC) has issued Circular No. 08/TT-BTTTT, detailing the operations of wholesale telecommunication services. This circular applies to telecommunication enterprises involved in wholesale activities, as well as organizations and individuals related to the management and provision of telecommunication services in Vietnam.

Starting August 23, 2024, wholesale telecommunication services must ensure fair, reasonable pricing and related conditions without discrimination. This includes fairness in pricing, terms, and conditions when providing wholesale services.

The wholesale activities must not discriminate between independently accounted units within the same enterprise, subsidiaries, business partners, or other wholesale buyers.

The prices, conditions, and terms of service must be reasonably constructed based on various factors, including the cost of service provision, quantity, quality, scope, method, time, location of the services provided, payment terms, service package duration as per contract, and factors like exclusivity, technology, and customer segmentation.

Under the new regulations, wholesale telecommunication services must transparently disclose information on pricing, standards, technical specifications, network quality, and telecommunication services.

Specifically, wholesale activities must comply with the procedures for price declaration and listing service prices as per legal regulations on pricing. Standard agreements, along with telecommunication technical standards, network quality, and specific terms and conditions for service provision and usage, must be transparently disclosed according to regulations.

For telecommunication services under the State-managed telecommunication service market list, within 30 days from the signing date of the service provision agreement, the wholesale enterprise identified as a market-dominant telecommunication enterprise must develop and publicize a standard agreement for wholesale service provision.

Telecommunication enterprises that are not market-dominant can independently develop standard agreements for wholesale service provision in compliance with regulations.

The wholesale service provision agreement must be in writing, including full details on pricing, service quality standards, and terms and conditions for service provision. The agreement must be clearly, consistently, and specifically written under the correct service names to ensure wholesale buyers only purchase wholesale services listed in the State-managed telecommunication service market list that they intend to buy.

According to the Telecommunications Authority (MIC), the wholesale policy aims to create a more transparent and straightforward legal framework, facilitating easier negotiations for carriers when purchasing traffic, thereby enabling them to provide high-quality services at attractive prices.

One significant group affected by this policy is mobile virtual network operators (MVNOs), which operate as wholesale service buyers. These enterprises do not own telecommunication infrastructure but provide mobile services by leasing traffic from other carriers.

As MVNOs do not own infrastructure and are not required to apply for frequency licenses, their service provision regulations are relatively straightforward. MVNOs only need to sign contracts to purchase SIMs from other mobile network operators to provide services.

So far, the MIC has licensed five enterprises to provide MVNO services in Vietnam, including Dong Duong Telecom, Mobicast, ASIM, Digilife, and FPT Retail. According to the latest data, Vietnam currently has approximately 2.65 million subscribers of MVNOs, accounting for 2.1% of the total mobile market.

Trong Dat