Circular No. 02/2007/TT-BTTTT guiding the implementation of regulations on managing postal and telecommunications service tariffs

CIRCULAR

Guidelines for Implementing Provisions on Price Management of Postal and Telecommunications Services

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Pursuant to the Competition Law dated December 3, 2004;

Pursuant to the Pricing Ordinance dated April 26, 2002;

Pursuant to the Postal and Telecommunications Ordinance dated May 25, 2002;

Pursuant to Decree No. 178/2007/NĐ-CP dated December 3, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and Ministerial-Level Agencies;

Pursuant to Decree No. 157/2004/NĐ-CP dated August 18, 2004 of the Government detailing the implementation of certain provisions of the Postal and Telecommunications Ordinance regarding Postal Services;

Pursuant to Decree No. 160/2004/NĐ-CP dated September 3, 2004 of the Government detailing the implementation of certain provisions of the Postal and Telecommunications Ordinance regarding Telecommunications;

Pursuant to Decision No. 39/2007/QĐ-TTg dated March 21, 2007 of the Prime Minister on price management of postal and telecommunications services;

The Ministry of Information and Communications issues guidelines for implementing provisions on price management of postal and telecommunications services as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope and Objects Regulated

1.1. These Circulars guide certain points on principles of price management; bases for setting prices; forms of price management; authority, procedures, and formalities for setting prices for postal services, express delivery services, telecommunications services, and Internet services (hereinafter collectively referred to as postal and telecommunications services).

1.2. These Circulars apply to organizations and individuals involved in managing, providing, and using postal and telecommunications services.

2. Explanation of terms

2.1. User service charges applicable to users of postal and telecommunications services are the charges paid by users to postal and telecommunications enterprises when using services provided by such enterprises. 2.2. Service charges between postal and telecommunications enterprises are the charges paid between enterprises providing postal and telecommunications services when one enterprise uses the network of another enterprise to terminate or  

transfer services. 2.3. An enterprise with a dominant market share is an enterprise that has revenue or traffic of 30% or more for a type of service within the permitted service area and may directly affect other enterprises' entry into that service market. 

2.4. A group of enterprises with a dominant market share consists of enterprises that engage in concerted actions to limit competition and directly affect other enterprises' entry into that service market, including the following cases: 

- Two enterprises with a combined market share (revenue or traffic) of 50% or more for a type of service within the permitted service area;

- Three enterprises with a combined market share (revenue or traffic) of 65% or more for a type of service within the permitted service area;

- Four enterprises with a combined market share (revenue or traffic) of

75% or more for a type of service within the permitted service area;  II. PRINCIPLES OF PRICE MANAGEMENT, BASES FOR SETTING PRICES AND FORMS OF PRICE MANAGEMENT FOR POSTAL AND TELECOMMUNICATIONS SERVICES

1. Principles of price management 1.1. The State respects the right of enterprises providing postal and telecommunications services to set their own prices and compete on price according to the law.

1.2. Price management and setting must ensure a balance between the rights and legitimate interests of service users, postal and telecommunications enterprises, and the State's interests.

1.3. Promote fair competition while ensuring public postal and telecommunications services.

1.4. Equality, without discrimination, in price management and setting applied to service users.

1.5. In necessary cases, the State may apply different forms of price management between postal and telecommunications service providers to encourage new enterprises to enter the market.

2. Bases for determining service charges

2.1. Bases for determining service charges applicable to users  

a) National policies for economic and social development and goals for postal and telecommunications development during each period; compliance with state regulations on price management and consistency with international commitments Vietnam has signed or joined.

b) Based on cost, supply and demand relationships in the market, and appropriate alignment with the rates of similar services in the region and worldwide.

c) Gradually reduce cross-subsidization among services until it is eliminated. Adjust service rates gradually to ensure the business efficiency of postal and telecommunications enterprises under competitive conditions and international economic integration.  

2.2. Bases for determining service charges between enterprises   

a) Interconnection charges between enterprises 

in telecommunications are formed based on:

- Costs incurred for interconnection. - No distinction between services or between telecommunications enterprises (including member enterprises) and other telecommunications enterprises.  

- Reasonable allocation according to network components or service stages.

- Appropriate alignment with interconnection rates in the region and worldwide. - Telecommunications market development policies for each period. State regulatory policies for enterprises' contributions to public telecommunications services and encouragement of enterprises entering the market through interconnection charges.

- In cases where interconnection charges include contributions to public telecommunications services, these contributions are clearly defined to ensure equality among enterprises. 

b) International settlement charges are established based on direct agreements between domestic postal and telecommunications service providers and foreign postal and telecommunications enterprises or according to regulations of international organizations Vietnam participates in, ensuring national sovereignty, user interests, and enterprise interests.

c) Charges for leasing channels, ports, shared infrastructure usage, and resold service charges between telecommunications enterprises are established to promote fair competition and encourage enterprise participation in the market.

3. Forms of price management

3.1. Determination of service charges: The State issues decisions on service charges for items subject to state pricing.

c) Tariffs for leasing channel services, leasing gateway services, shared infrastructure usage tariffs, and reselling service tariffs among telecommunications enterprises shall be established on the basis of promoting healthy competition and encouraging enterprises to participate in the market. 3. Forms of tariff management

3.1. Setting tariffs: The State issues decisions on tariffs for services included in the list of services for which the State sets prices.   

+ A letter signed by the head of the enterprise and stamped, detailing the content of the service, the name of the service, the expected date of implementation of the tariff rate, etc.;

3.2. Registration of service rates: Enterprises decide on service rates within the registered rate list, but must register such rates with the competent state management agency in accordance with Clause a, Sub-Clause 1.2, Point 1, Section IV of this Circular before issuing the decision.  3.3. Rate quotation (quotation): Enterprises independently set rates for services within the quotation list and submit quotations to the competent state management agency in accordance with Clause b, Sub-Clause 1.2, 

Point 1, Section  Self-determined rates: Enterprises independently determine rates for services outside the list specified in Sub-Clause  Point 3, Section  3.3. Rate quotation (quotation): Enterprises independently set rates for services within the quotation list and submit quotations to the competent state management agency in accordance with Clause b, Sub-Clause 1.2,

3.4. II of this Circular.  3.1, 3.2, 3.3  III. AUTHORITY FOR MANAGING SERVICE RATES

The authority for managing postal and telecommunications service rates shall be implemented in accordance with Article 5 and Article 6 of Decision No. 39/2007/QĐ-TTg dated March 21, 2007 of the Prime Minister on the management of postal and telecommunications service rates, specifically as follows:

Approving the principle of the rate plan for domestic letter services weighing up to 20 grams and local telephone calls.

1. The Prime Minister

2.1. Organizing, directing, developing, and submitting to the Prime Minister the rate plan at Point 1, Section III of this Circular.

2. Ministry of Information and Communications

2.2. After the Prime Minister approves the principle of the rate plan, deciding the rate range or specific rates for services at Point 1, Section III of this Circular,

2.3. After receiving comments from the Ministry of Finance, deciding the rate range or specific rates for: Public postal services; dedicated postal services;

Public telecommunications services.  2.4. Annually in the first quarter or at any time: Publishing the list, form, and implementation of management according to the regulated rates of telecommunications services provided by enterprises or groups of telecommunications enterprises holding a dominant market share.

2.5. Annually in the first quarter or at any time: Publishing the list, form, and implementation of management according to the regulated interconnection rates between telecommunications enterprises.

2.6. Specifying mechanisms and forms of management for international payment rates between domestic postal and telecommunications service providers and foreign telecommunications enterprises.

3. Postal and telecommunications enterprises and Internet enterprises    

3.1. Setting specific rates within the rate range or based on the standard rates prescribed by the State for services specified at Points 1 and 2, Section III of this Circular.

Implementing registration and quotation for services within the registration and quotation lists.

3.2. 3.3. Independently setting rates for services outside the lists specified in Sub-Clauses 3.1 and 3.2,

Point 3, Section III of this Circular based on compliance with regulations on principles of management and bases for determining postal and telecommunications service rates.  3.4. Postal and telecommunications enterprises are responsible for developing rate plans for postal and telecommunications services within the list of services for which the State determines rates; separately accounting for service provision costs; implementing calculations and determination of service costs in accordance with regulations and bearing responsibility for the truthfulness and legality of cost calculation data.  

IV. PROCEDURES FOR DEVELOPING, SUBMITTING, REVIEWING, AND ISSUING POSTAL AND TELECOMMUNICATIONS SERVICE RATES  

1. Service rates applicable to users

1.1 For services within the list of rates determined by the State

a) When enterprises have a need or when the State requests adjustment of rates for services within the list of rates determined by the State, enterprises prepare a rate plan dossier and submit it to the Ministry of Information and Communications.

b) The rate plan dossier includes:

- A request from the enterprise proposing the rate adjustment.

- The rate adjustment plan, including but not limited to the following contents:

+ Evaluation of the current business situation of the service from the last rate adjustment to the date of the proposed adjustment;

+ Forecast of market changes, necessity, and basis for rate adjustment;

+ Basis, method, and explanation of service cost calculation; specific rate adjustment plan; 

+ Comparison of current rates, proposed adjusted rates with similar service rates in the region and worldwide (especially compared to ASEAN countries);

+ Analysis of the impact and effect of the rate adjustment on the enterprise and service users;

+ Proposals for organizational measures to implement the adjustment.

c) For services that require approval by the Prime Minister 

the principle of the rate plan, within 45 working days from the receipt of the complete rate plan dossier in accordance with regulations, the Ministry of Information and Communications will review, examine, seek opinions from relevant ministries and sectors, and submit to the Prime Minister. After the Prime Minister approves the rate plan, the Ministry of Information and Communications will issue the rate decision within 20 working days.  d) For services for which the Ministry of Information and Communications issues the decision:

- For services requiring opinions from relevant ministries and sectors, within 20 working days from the receipt of the complete rate plan dossier in accordance with regulations, the Ministry of Information and Communications will review, seek agreement from relevant ministries and sectors to issue the rate decision.

- For services not requiring opinions from relevant ministries and sectors, within 10 working days from the receipt of the complete rate plan dossier in accordance with regulations, the Ministry of Information and Communications will review and issue the rate decision.

1.2. For services managed through rate registration and quotation

The list of services managed through rate registration and quotation forms is published annually in the first quarter or at any time as stipulated in Sub-Clause 2.4, Point 2, Section III of this Circular.

a) For services managed through rate registration

- When establishing or adjusting rates for services within the registration list, enterprises prepare a rate registration dossier and submit it to the Ministry of Information and Communications.

- The rate registration dossier includes:   

+ A letter signed by the head of the enterprise, stamped, describing the service content, name, expected start date of the rate application, etc.;

annually or at any time according to the provisions of Clause e, Point 2, Section III of this Circular.

+ Comparison of current rates, proposed adjusted rates with similar service rates in the region and worldwide (especially compared to ASEAN countries);

+  ||| Evaluate the impact and influence of adjusting service tariff rates on the corresponding service market or on related services.

||| + Draft decision to set service tariff rates for enterprises.   

||| - The tariff rate registration dossier must be submitted to the Ministry of Information and Communications at least 10 working days before the enterprise's planned implementation date. Within 5 working days from receiving the complete tariff rate registration dossier, the Ministry of Information and Communications will issue a notification accepting or not accepting the enterprise's tariff rate registration dossier (specifying the reasons for non-acceptance).

||| + In case the enterprise's tariff rate registration dossier is accepted by the Ministry, the enterprise shall independently issue a decision on tariff rates within the range of registered tariff rates with the Ministry of Information and Communications.

||| + In case the enterprise's tariff rate registration dossier is not accepted by the Ministry, the enterprise shall continue implementing the current effective tariff rates and re-register the tariff rates according to regulations if necessary.

||| b) For services managed under the quotation form  

||| - When adjusting tariff rates for services under the quotation list, enterprises shall develop a pricing plan; independently issue a decision on service tariff rates and submit quotations to the Ministry of Information and Communications as prescribed.

||| - The quotation dossier includes: A letter submitting the quotation; the enterprise's decision on service tariff rates.  

||| - The quotation dossier needs to be submitted to the Ministry of Information and Communications no later than 3 working days after the enterprise's decision on service tariff rates is signed and issued.

||| - In case the service tariff rate quotation dossier of the enterprise does not comply with current regulations on tariff rate management, the Ministry of Information and Communications will issue a document requesting the enterprise to suspend the application of new tariff rates for review and adjustment.  ||| 

1.3. Tariff Report

||| Before the 10th day of the first month of each quarter, enterprises shall submit a tariff report on postal and telecommunications services provided by them to the Ministry of Posts and Telecommunications and the Ministry of Finance according to the model specified in Appendix I.   

2. For tariffs between enterprises

2.1. Connection Tariffs

The list and forms of managing connection tariffs between enterprises are announced periodically in the first quarter of each year or exceptionally as stipulated in Clause e, Point 2, Section III of this Circular.  and Telecommunications will require telecommunications enterprises to participate in connection

a) For connection tariffs managed under the form of a tariff decision

Based on market development conditions and demand for connection tariffs: telecommunications enterprises shall develop a connection tariff plan or the Ministry of Information and Communications will request telecommunications enterprises participating in connections to develop a connection tariff plan and submit it to the Ministry. . Within fifteen working days from the date of receipt of all documents for the tariff connection plan, the Ministry Within 15 working days from receiving the complete connection tariff plan dossier, the Ministry will examine and appraise, and organize a meeting with all telecommunications enterprises to consult on the connection tariffs proposed by participating enterprises. Within 30 working days after the consultation meeting, the Ministry will issue a decision on connection tariffs applicable between telecommunications enterprises. Article 7. The content of the "Citizen Reception Rules" shall be implemented in accordance with the Appendix attached to this Circular.will review, assess, and organize a meeting with all telecommunications enterprises to consult on the connection tariffs proposed by the participating enterprises. Within thirty working days following the consultation meeting, the Ministry Article 7. The content of the "Citizen Reception Rules" shall be implemented in accordance with the Appendix attached to this Circular. will issue a decision to promulgate the connection tariffs applicable between telecommunications enterprises. Article 7. The content of the "Citizen Reception Rules" shall be implemented in accordance with the Appendix attached to this Circular. as stipulated in Subparagraph a, Clause 1.2, Point 1, Section

b) For connection tariffs managed under the form of registration

Telecommunications enterprises participating in connections shall negotiate and agree on connection tariffs, prepare a registration dossier, and submit the tariff registration dossier to the Ministry of Information and Communications as prescribed in Subsection a, Clause 1.2, Point 1, Section 2 of this Circular. 2.2. International settlement tariffs between Vietnamese enterprises and foreign enterprises  3.3. Rate quotation (quotation): Enterprises independently set rates for services within the quotation list and submit quotations to the competent state management agency in accordance with Clause b, Sub-Clause 1.2, 

Based on the development conditions of each period, the Ministry of Information and Communications will specify specific forms of tariff management for leasing channel services, leasing gateway services, shared infrastructure usage, and service resale.

2.2. International Settlement Tariffs between Enterprises

a) International settlement tariffs between domestic enterprises providing international postal and telecommunications services and foreign enterprises are managed under the quotation form. Domestic enterprises providing international postal and telecommunications services directly negotiate and agree on international settlement tariffs and sign international settlement contracts with foreign postal and telecommunications enterprises based on ensuring national sovereignty, national interests, user benefits, and enterprise benefits. The process of submitting international settlement tariffs quotations to the Ministry of Information and Communications is carried out as prescribed in Subsection b, Clause 1.2, Point 1, Section IV of this Circular.  

b) When conducting international settlements, domestic enterprises providing international postal and telecommunications services must apply necessary economic, technical, and operational measures to ensure contract implementation in accordance with laws and international practices to avoid prolonged bad debts between parties.

On the basis of the development conditions at each period, the Ministry of Information and Communications shall specify the specific forms of price management for service charges related to leased circuits, leased ports, shared infrastructure usage, and resold services. 

2.3. Tariffs for Leased Lines, Ports, Shared Infrastructure, and Resold Services

Based on development conditions at different periods, the Ministry of Information and Communications will specify specific forms of managing tariffs for leased lines, ports, shared infrastructure, and resold services.

V. IMPLEMENTATION

2.4. Tariffs between Postal and Express Delivery Enterprises

Tariffs between postal and express delivery enterprises shall be directly negotiated and agreed upon based on contracts, and reported to the Ministry of Information and Communications as prescribed in Subsection b, Clause 1.2, Point 1, Section IV of this Circular.