Directive No. 10/2006/CT-BBCVT on the implementation of the Prime Minister's Decision approving the Telecommunications and Internet Development Plan for Vietnam until 2010.

DIRECTIVE

On implementing the Prime Minister's Decision "Approving the Telecommunications and Internet Development Plan for Vietnam until 2010"

On February 7, 2006, the Prime Minister issued Decision No. 32/2006/QĐ-TTg approving the Telecommunications and Internet Development Plan for Vietnam until 2010. To organize the implementation of the Prime Minister's Decision to develop telecommunications and Internet in Vietnam according to the approved plan, the Minister of Posts and Telecommunications issues the following directive:

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Organize the dissemination and thorough understanding among cadres, civil servants, and employees in all state management agencies and telecommunications and Internet enterprises about the Telecommunications and Internet Development Plan for Vietnam until 2010 approved by the Prime Minister; strengthen guidance work, closely coordinate with localities and related units, implement the Plan to promote the development of the telecommunications and Internet industry to serve industrialization and modernization, and prepare well for the process of international economic integration.

1. Strengthen investment and development of modern telecommunications and Internet infrastructure with good quality. Provide society and consumers with modern and diverse telecommunications and Internet services at rates equivalent to or lower than the regional average, meeting information needs for economic, social, security, and defense purposes. Implement universal access to telecommunications and Internet services across all regions of the country with continuously improving service quality and accessibility. By 2010, the telephone density should reach from 32 to 42 units per 100 people (of which fixed-line telephone density is 14 to 16 units per 100 people); Internet subscriber density should reach from 8 to 12 subscribers per 100 people (of which 30% are broadband Internet subscribers); the Internet usage rate should reach 25% to 35% of the population; telephone density in areas provided with public telecommunications services should exceed 5 units per 100 people; 100% of communes nationwide should have public telephone access points; 70% of communes nationwide should have public Internet access points; all citizens should be able to access free of charge when using mandatory telecommunications services.

2. For units under the Ministry of Posts and Telecommunications.

Based on their functions and responsibilities, study and propose contents, plans, and organize the implementation to complete the Telecommunications and Internet Development Plan for Vietnam until 2010. Specifically as follows:

3.1. Telecommunications Department:

- Take the lead in drafting and promulgating guiding documents related to telecommunications and Internet in the Law on Electronic Transactions, the Law on Information Technology, and the Ordinance on Posts and Telecommunications.

- Participate in researching and implementing the drafting of the Telecommunications Law.

- Based on market development trends, report to the Minister and submit to the Prime Minister for decision-making on granting licenses to enterprises providing telecommunications and Internet infrastructure.

- Take the lead in drafting and promulgating regulations on interconnection of public telecommunications networks and shared infrastructure use to efficiently utilize investment capital and facilitate the signing and implementation of interconnection agreements between enterprises. Direct, urge, and implement regulations on interconnection between public telecommunications networks; coordinate with relevant units to promptly resolve interconnection issues between enterprises.

- Coordinate with the Planning and Finance Department, Science and Technology Department, Radio Frequency Management Bureau, Quality Management Bureau of Posts and Telecommunications and Information Technology, and related units to draft and promulgate regulatory documents on licensing, frequency, standards, quality, and rates to implement state management in the field of transmission and broadcasting, particularly radio and television broadcasting.

- Take the lead in drafting and promulgating planning and management regulations for telecommunications numbering.

- Coordinate with related units and telecommunications and Internet enterprises to organize research on mechanisms, policies, and direct the implementation of trial licensing for new services such as WiMax, 3G mobile, IP telephony, etc.

- Take the lead in drafting and promulgating regulations on resale of telecommunications services. Create conditions for various economic sectors to participate in investment, business, and provision of telecommunications and Internet services.

- Take the lead in drafting and promulgating regulations on periodic reporting by postal, telecommunications, and Internet enterprises.

- Coordinate with ministries, sectors, and related units to research, build, and propose organizational schemes for communication services to support disaster forecasting and maritime safety operations.

- Proactively coordinate with the Ministry of Public Security and related units to draft and promulgate regulations ensuring network security and information security in the telecommunications and Internet sector.

3.2. Legal Affairs Department:

Take the lead in researching and registering the Telecommunications Law and the Postal Law into the legislative program of the National Assembly, coordinate with related units to draft and promulgate the Telecommunications Law and the Postal Law to replace the Ordinance on Posts and Telecommunications. 3.3. Planning and Finance Department:

- Take the lead in drafting and promulgating a new pricing management mechanism to replace Decision No. 217/2003/QĐ-TTg of the Prime Minister dated October 27, 2003 on managing the rates of postal and telecommunications services.

- Coordinate with relevant agencies and units to gradually reform the system of fees and charges for license use and resource utilization in telecommunications and Internet (frequencies, numbering, domain names, Internet addresses) based on the principle of ensuring efficient and economical use of resources while not excessively increasing production and business costs for enterprises.

- Study and propose adjustment plans for telecommunications service rates towards adjusting rates of services that are still below cost to ensure business efficiency under competitive and international economic integration conditions.

- Study and propose schemes to adjust telecommunications service tariffs in a direction that lowers such tariffs below cost prices to ensure business efficiency for enterprises under conditions of competition and international economic integration.

- Study, propose adjustment plans for interconnection tariffs and leased line tariffs between enterprises based on cost, clearly defining the contribution to the provision of public telecommunications services within interconnection tariffs.

- Coordinate with the Ministry of Finance, Ministry of Public Security, Ministry of National Defense, and related units to study and issue financial mechanisms for the provision of telecommunications and Internet services serving national defense, security tasks, and ensuring the operation and use of telecommunications and Internet services by Party and State agencies.

- Proactively propose and coordinate with the Ministry of Planning and Investment and related units in implementing key investment projects in the telecommunications and Internet sector; develop, complete, and submit for issuance emergency investment mechanisms to connect public telecommunications networks.

- Proactively propose and coordinate with the Ministry of Transport and related units to develop and submit for issuance regulations guiding the construction of telecommunications transmission lines along roads, bridges, culverts, and sidewalks to accelerate the implementation progress of telecommunications and Internet projects.

3.4. Department of Organization and Cadres:

- Direct the reform of production and business organization of telecommunications enterprises towards forming strong groups and holding companies with high specialization, independent accounting, and autonomous operation to meet the requirements of international economic competition integration. Direct the implementation of the Vietnam Post and Telecommunications Group and its subsidiaries according to Decision No. 58/2005/QD-TTg dated March 23, 2005 of the Prime Minister.

- Proactively coordinate with the Ministry of Finance and related units to accelerate the process of equitization of enterprises according to approved plans, initially focusing on value-added service provision, Internet, and mobile information sectors. Encourage and create conditions for telecommunications and Internet enterprises that have been equitized to list on domestic and foreign stock markets.

- Proactively coordinate with the Ministry of Home Affairs and related units to continue improving the state management machinery for telecommunications and Internet from central to local levels; focusing on building, completing, and enhancing the capacity of specialized management agencies regarding telecommunications, radio frequency, Internet, and information security.

3.5. Department of International Cooperation:

- Review international treaties to which Vietnam is a party in the field of telecommunications and Internet to propose the development of new or supplementary, amended legal documents in this field.

- Coordinate with related units to research and propose support and guidance plans for telecommunications and Internet enterprises during the process of opening up, integration, and joining the World Trade Organization (WTO).

- Strengthen bilateral and multilateral cooperation to obtain information, training experience, and financial resources to enhance the state management capacity of the Ministry.

3.6. Department of Science and Technology:

- Vigorously promote the establishment of standards in the telecommunications and Internet fields in accordance with Vietnamese laws, international practices, and regulations.

- Consider and study the formation of science and technology funds to support research, testing, and production of new technologies.

- Direct the research, application, and transfer of special technologies, especially new and advanced technologies.

3.7. Inspectorate of the Ministry:

- Direct and urge the Inspectorates of the Departments and Centers under the Ministry and Postal and Telecommunications Departments at provincial level to strengthen inspections and supervision of telecommunications and Internet business activities, particularly those related to network connection, tariffs, and service quality.

- Apply comprehensive economic, technical, and operational measures while strengthening inter-agency coordination to effectively prevent illegal business activities in the telecommunications and Internet sectors.

- Strictly handle organizations and individuals violating laws in the telecommunications and Internet sectors according to current regulations.

- Inspect the implementation of public telecommunications programs by units and enterprises.

- Lead the drafting and submission for issuance of legal documents and guidelines related to administrative penalties for violations in telecommunications and Internet.

- Direct enterprises to establish complaint resolution and compensation regulations for users when service faults are caused by service providers.

3.8. Postal and Telecommunications Quality Management and Information Technology Administration:

- Strengthen the management of telecommunications and Internet service quality: Increase inspection and monitoring of service quality; publicly report inspection and monitoring results of service quality by enterprises; inspect and penalize violations of telecommunications and Internet service quality management regulations.

- Quickly implement management and certification of telecommunications engineering works, especially antenna systems and peripheral cable networks.

- Enhance the management of equipment quality, particularly terminal devices, radio communication equipment, and other devices capable of interfering with radio communications through methods such as standard compliance announcement, conformity certification, mutual recognition (MRA), electromagnetic compatibility (EMC) management.

3.9. Radio Frequency Administration in collaboration with the Department of Planning and Finance, the Telecommunications Department, and related units:

- Develop and submit for issuance frequency band planning for new services such as WiMax, RFID, broadcasting, and television.

- Develop and submit for issuance technical conditions and usage regulations for radio equipment subject to conditional use without requiring a radio frequency license.

- Develop and submit for issuance planning of radio information monitoring and control stations.

- Accelerate the reform of frequency licensing procedures towards transparency, convenience for businesses and users.

3.10. The Information Technology Application Department: Promote the application of information technology in state management of telecommunications and the Internet. Implement training programs to develop human resources for information technology leaders (CIOs) and senior experts in telecommunications and the Internet.

3.11. The Vietnam Internet Network Information Center (VNNIC) shall coordinate with the Planning and Finance Department, the Telecommunications Department, and related units:

- Study and test new technologies, and implement the development of new services related to Internet resources such as IPv6, ENUM; establish and deploy national data centers and Internet transit centers to meet the rapid development requirements of the Internet and the integration of communication services on a common infrastructure.

- Develop and submit for promulgation: regulations on domain name dispute resolution; registration, management, and use of Internet resources; regulations on the operation of national Internet transit centers based on ensuring investment efficiency, cost-saving, and effectiveness in accordance with current laws and the future development of the Internet.

- Develop and submit for promulgation an overall plan for the technical infrastructure development of VNNIC to meet the requirements of Internet development in society.

3.12. The Universal Service Fund for Telecommunications:

- Actively implement the activities of the Universal Service Fund for Telecommunications to clearly distinguish business operations from public service obligations of enterprises during the period of competition and international economic integration.

- Effectively implement the program of providing universal telecommunications services from 2006 to 2010 to gradually increase the level of service penetration and reduce the development gap in telecommunications and the Internet between regions nationwide.

3.13. The Vietnam Computer Emergency Response Team (VNCERT):

- Establish, complete, and enhance capabilities in coordinating, responding to, and resolving computer incidents; participate in preventing cybercrime and terrorism.

- Study and propose the application of technologies and technical solutions to increase the reliability and security of electronic transactions over telecommunications and Internet networks of organizations, businesses, and users.

- Coordinate with relevant units to organize training and improve capabilities in network security.

3.14. The Institute of Postal and Telecommunications Strategy and Information Technology shall coordinate with the Telecommunications Department and related units:

- Develop and submit for promulgation plans for transmission and broadcasting.

- Monitor the organization and implementation of the Telecommunications and Internet Development Plan. Based on the country's economic development situation, report to the Minister and submit to the Prime Minister updates and adjustments to the Telecommunications and Internet Development Plan as appropriate.

4. Provincial Posts and Telecommunications Departments:

- Develop, submit for approval, and direct enterprises to implement the local telecommunications and Internet development plan in accordance with the industry strategy and planning, and the socio-economic development planning of the locality.

- Guide and create favorable conditions for telecommunications enterprises to build telecommunications infrastructure, prioritizing land allocation and site clearance, especially for postal and telecommunications construction projects such as antenna towers, peripheral networks, cable pits, and public service points.

- Establish inter-ministerial coordination mechanisms to facilitate shared infrastructure use among transportation, power, and telecommunications sectors; and coordination mechanisms between the telecommunications sector and the police force to ensure information security.

- Coordinate with functional units of the Ministry to resolve and handle disputes regarding connectivity; ensure convenient and lawful telecommunications and Internet business operations within their jurisdiction.

- Strengthen inspection, supervision, administrative handling, and customer complaint resolution concerning service quality violations, tariff rates, radio frequency usage, and illegal telecommunications and Internet services within their jurisdiction.

5. For Telecommunications and Internet Enterprises:

- Proactively develop enterprise plans in line with the National Telecommunications and Internet Development Plan until 2010. Simultaneously, register with the Posts and Telecommunications Ministry revenue targets, network and service development, and subscriber growth annually until 2010.

- Implement organizational and business reforms, adjust production structures and investments to operate effectively, rapidly increase internal capital accumulation, and reinvest for development. Carry out shareholding of units according to approved plans, initially focusing on Internet service provision, value-added services, and mobile information services.

- Ensure business autonomy, independent accounting, and move towards eliminating cross-subsidies between telecommunications and Internet services.

- Enhance attraction of domestic economic sector capital, emphasizing capital mobilization through enterprise shareholding and service sales.

- Prioritize the development of new services consistent with trends in converging broadcasting, television, information technology, telecommunications, and the convergence of fixed and mobile telecommunications services. Study and trial advanced technologies in telecommunications and the Internet to leapfrog and enhance the competitiveness of Vietnamese enterprises.

- Adjust labor structures in the telecommunications and Internet sector towards increasing outsourcing and external workforce utilization to leverage social labor forces and increase productivity in telecommunications and Internet fields.

- Continue to enhance cooperation in existing international joint ventures; seek opportunities and implement new forms of cooperation in compliance with Vietnamese investment laws and international commitments; seek foreign markets for business investment in compliance with international laws and practices.

- Strictly implement the regulations on the management of quality of telecommunications and Internet services; regularly conduct self-inspections and monitoring of the quality of services provided to ensure that the service quality meets the standards compulsorily applied by the Ministry of Posts and Telecommunications and the quality promised by the enterprise.

- New telecommunications and Internet enterprises (excluding the Vietnam Post and Telecommunications Group - VNPT) need to closely adhere to the Telecommunications and Internet Development Plan; have good development orientations; quickly build and deploy networks, provide telecommunications and Internet services with the goal of achieving 40% - 50% market share by 2010 for important services such as international telephone calls, leased circuits, mobile information, broadband Internet; create a healthy competitive environment for telecommunications and Internet services.

The Telecommunications Department is responsible for guiding, inspecting, and urging the implementation of this Directive; coordinating with relevant agencies and units to promptly resolve any issues arising during the implementation process and reporting the results to the Minister.