VietNamNet Bridge – The State has decided to form up a competitive broadcasting and transmission market, considering allowing more capable telecom groups to provide the services.

Under the national program on digitalizing the broadcasting and transmission by 2020, televisions would share the same infrastructure system. Television stations would focus on producing TV programs, while the transmission would be taken care of by specialized companies.

To date, 3 transmission service companies have been licensed, namely VTV, VTC and AVG which are capable to transmit TV channels in different transmission modes, including digital terrestrial, satellite or cable TV.

To date, radio and television stations nationwide have been both making content and broadcasting.

Deputy Minister of Information and Communication -- Le Nam Thang, said once television stations share the same infrastructure for the transmission, local radio and television stations will not be able to broadcast themselves, but they will have this done through transmission service companies. The infrastructure sharing would help save money and frequency resources.

Thang, while emphasizing that the State aims to create a competitive market to ensure the optimal benefits for customers, said together with VTV, VTC and AVG, which are allowed to provide services throughout the country, the State would license 1-2 enterprises in every region to encourage the competition.

In case the regional enterprises are not capable to provide the transmission service, the State may consider allowing the telcos with existing network infrastructure to provide the service.

“Telcos are ready to make investment in the field,” Thang said.

Regarding the establishment of a competitive broadcasting and transmission market, some experts believe that no need to set up regional transmission service companies, if this requires too much of the state’s support.

A senior official of the Thai Binh provincial Television said that 2 million Thai Binh’s people now live in Thai Binh and 2 million more live in other localities throughout the country, which means the high interest in the socio-development of Thai Binh from all over the country. Therefore, Thai Binh’s TV programs should not be broadcasted only in the locality, and no need to establish regional transmission companies.

The representative from the Quang Ninh Radio and Frequency Television said 10,700 households in the locality now use terrestrial TV, and over 1 million use cable and satellite TV. This shows the low demand for the free digital terrestrial TV. Therefore, the representative thinks it would be better to find out the demand before discussing about how many service companies to establish.

To date, TV programs in Quang Ninh have been broadcasted free of charge on many cable channels. However, local radio and television stations would have to pay the transmission service fee, estimated at VND2 billion, which would be a burden on them.

The Bac Ninh Radio and Television Station now spends between VND960 million and VND1 billion a year on the transmission. However, the expenses are expected to be double once broadcasting digital TV.

In the latest news, Hanel, an electronics manufacturer, and the Hai Phong City Radio and Television have asked for the permission to establish broadcasting and transmission companies of their own in the northern region, which are hoped to help increase their competitiveness when implementing the TV digitalization process.

How high the broadcasting and transmission service fee remains questionable. Le Kinh Loc, Deputy General Director of VTC, said the investment rate would be very big, and service providers should not expect to make profits at once. Therefore, he thinks that it’s necessary for the State to intervene the market define the service fees at reasonable levels.

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