Ministries work on mobile operators’ proposal to increase promotion rate

SGGP
The Ministry of Information and Communications has worked with the Ministry of Finance on a proposal by mobile operators to increase promotion rate for pre-paid subscribers from the current rate of 20 percent to 50 percent.

Ministries work on mobile operators’ proposal to increase promotion rate

According to Circular 47 issued by the former on March 1 this year, the promotion rate is capped at 20 percent for pre-paid subscribers and 50 percent for post-paid subscribers.
The regulation aims at encouraging residents to use postpaid service and limiting SMS and call spams from pre-paid service.
However, mobile operators said that the rate cut has reduced top-up and made it difficult to launch demand stimulation programs.
After two months since the circular took effect, there are only an extra of 130,000 mobile subscribers changing from pre-paid into post-paid service, they said.
Hence, promotion tightening has not helped develop post-paid service as expected but reduced the number of pre-paid subscribers accounting for 95 percent of mobile subscribers in Vietnam. That has affected businesses’ revenue and profit.

By KIM HUYEN – Translated by Hai Mien

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