Viettel proposes to reduce charges

Viettel, one of Vietnam’s largest mobile network operators, on July 7 proposed the Ministry of Information and Telecommunications to reduce mobile phone charges, aiming to stimulate consumption demand.
The company also proposed the Ministry to permit it to apply the same rates on calls among Viettel subscribers and between them and other intra-networks. At present the difference is 12.6 percent.
If this proposal is passed, Viettel’s profit will reduce about VND80 billion (US$3.76 million) a month.
The charge reduction is to compete with 3G and OTT (Over the Top) services that have a strong increase in the number of users, said Mr. Son.
Pham Hong Hai, head of the Telecommunications Department, said that they will order Viettel and other telecommunications companies to make reports on cost prices of mobile phone service. The ministry will base on the reports to approve charge change proposals.
According to the ministry, the country’s post and telecommunications revenue was estimated to reach VND122 trillion (US$5.73 billion) in the first half 2014, accounting for 44 percent of the year plan.

By Tran Binh – Translated by Hai Mien

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