CIRCULAR
Regulations on promotional activities for mobile information services
MINISTER OF INFORMATION AND COMMUNICATIONS
Based on the Trade Law dated June 14, 2005;
Pursuant to the Law on Telecommunications dated November 23, 2009;
Based on Decree No. 187/2007/NĐ-CP dated December 25, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Information and Communications;
Based on Decree No. 37/2006/NĐ-CP dated April 4, 2006 of the Government detailing the Trade Law on trade promotion activities (hereinafter referred to as Decree No. 37/2006/NĐ-CP);
Based on Decision No. 39/2007/QĐ-TTg dated March 21, 2007 of the Prime Minister on managing postal and telecommunications service charges;
At the proposal of the Director of the Telecommunications Department,
c) Enterprises may be granted permission for no more than one block out of the total three dual-frequency blocks (FDD) B
PART I
GENERAL PROVISIONS
Article 1. Scope of Regulation
This Circular stipulates promotional activities for terrestrial mobile information services (hereinafter referred to as mobile information services) and specialized goods in the field of mobile information (hereinafter referred to as specialized mobile information goods).
Article 2. Applicability
1. Telecommunication enterprises with licenses to establish networks and provide mobile information services (hereinafter referred to as mobile enterprises).
2. Merchants trading in specialized mobile information goods based on contracts signed with mobile enterprises.
Article 3. Services and service units of mobile information
1. Mobile information services legally operated and permitted for promotion include:
a) National postpaid terrestrial mobile information services;
b) National prepaid terrestrial mobile information services;
c) Regional postpaid terrestrial mobile information services;
d) Regional prepaid terrestrial mobile information services;
đ) Other mobile information services as prescribed by the Ministry of Information and Communications.
2. Service units of mobile information include:
a) Network registration is the process by which a subscriber is granted the right to connect to a mobile information network upon signing a contract with a mobile enterprise. The unit is one registration;
b) Daily subscription is the process by which a subscriber is granted the right to connect to a mobile information network for one day. The unit is one day;
c) Monthly subscription is the process by which a subscriber is granted the right to connect to a mobile information network for one month. The unit is one month;
d) Communication time is the duration during which a subscriber sends or receives information (voice, data, images) while using mobile information services. The unit is minutes or seconds;
đ) Data volume is the number of bytes of information (data, images) sent or received by a subscriber through the network while using mobile information services. The unit is byte;
e) Information package is the quantity of transactions conducted by a subscriber through the mobile information network while using mobile information services, including:
- Number of calls (voice). The unit is one call;
- Number of message notifications (SMS, MMS). The unit is one message notification;
- Number of files (data, images). The unit is one file.
g) Other service units of mobile information as prescribed by the Ministry of Information and Communications.
3. Tariff for mobile information services is the price excluding value-added tax, denominated in Vietnamese Dong (VND), actually collected when providing one service unit of mobile information that the mobile enterprise has registered and announced to the Ministry of Information and Communications and publicly displayed to customers immediately before the promotion period. The tariff for mobile information services includes:
a) Registration fee (VND/per registration);
b) Daily subscription fee (VND/per day);
c) Monthly subscription fee (VND/per month);
d) Information fee (VND/per minute (second) or VND/per byte or VND/per call or VND/per message notification or VND/per file).
Article 4. Mobile communication information dedicated goods and units thereof
1. Mobile communication information dedicated goods that are legally traded and promoted include:
a) Subscriber Identity Module (SIM) cards for nationwide prepaid mobile communication services containing mobile subscriber numbers. The unit is "one SIM card".
b) Subscriber Identity Module (SIM) cards for nationwide postpaid mobile communication services containing mobile subscriber numbers. The unit is "one SIM card".
c) Subscriber Identity Module (SIM) cards for regional prepaid mobile communication services containing mobile subscriber numbers. The unit is "one SIM card".
d) Subscriber Identity Module (SIM) cards for regional postpaid mobile communication services containing mobile subscriber numbers. The unit is "one SIM card".
e) Prepaid paper vouchers, electronic means, or other means for nationwide mobile communication services. The unit is "one voucher".
f) Prepaid paper vouchers, electronic means, or other means for regional mobile communication services. The unit is "one voucher".
g) Mobile phones already pre-installed with mobile subscriber numbers. The unit is "one phone".
h) Other mobile communication information dedicated goods as prescribed by the Ministry of Information and Communications.
2. The price of mobile communication information dedicated goods is the price excluding value-added tax, denominated in Vietnamese Dong (VND), actually received when selling one unit of mobile communication information dedicated goods, which enterprises publicly announce to customers immediately before the promotion period.
Article 5. Principles of Promotion in the Field of Mobile Communication
In addition to the provisions of Article 4 of Decree 37/2006/NĐ-CP, the implementation of promotional activities in the field of mobile communication must ensure the following principles:
1. Only mobile enterprises are permitted to trade and promote mobile communication services.
2. Only mobile enterprises are permitted to issue and promote mobile communication information dedicated goods. Promotions of blank SIM cards without mobile subscriber numbers, mobile phones without SIM cards, and data cards without SIM cards shall be conducted like other goods regulated under the Trade Law and Decree No. 37/2006/NĐ-CP.
3. Mobile enterprises may directly implement promotions or hire trading businesses specializing in promotional services to carry out service and mobile communication information dedicated goods promotions on their behalf. In cases where trading businesses specializing in promotional services carry out service and mobile communication information dedicated goods promotions on behalf of mobile enterprises, the mobile enterprises must ensure that the promotions are carried out according to the announced or registered promotion programs with state management agencies for promotions.
4. Mobile enterprises can only promote mobile communication service brands specified in Clause 1 of Article 3 and mobile communication information dedicated goods brands specified in Clause 1 of Article 4 of this Circular, provided that the enterprises have been granted telecommunications service provision licenses and are authorized to trade in corresponding mobile communication information dedicated goods by the Ministry of Information and Communications.
5. Agents of mobile enterprises and other traders dealing in mobile communication information dedicated goods:
a) Must sign contracts with mobile enterprises;
b) Shall not organize promotions of mobile communication information dedicated goods arbitrarily but shall only carry out promotions according to the promotion programs organized by mobile enterprises.
6. Activities promoting with the aim of unfair competition in the telecommunications market or selling mobile communication services and mobile communication information dedicated goods at dumping prices are prohibited.
7. Mobile communication enterprises are responsible for ensuring the quality of promoted mobile communication services and mobile communication information dedicated goods in accordance with legal regulations on standard and technical specification management, product and service quality in the telecommunications sector.
8. It is not allowed to promote by reducing mobile communication service rates or the sale prices of mobile communication information dedicated goods for services and goods whose specific prices are set by the State. It is also not allowed to promote by reducing mobile communication service rates or the sale prices of mobile communication information dedicated goods below the minimum level for services and goods within the price range or minimum price set by the State.
9. The material value used for promoting one unit of mobile communication service or mobile communication information dedicated goods during the promotion period shall not exceed 50% of the price of that unit of mobile communication service or mobile communication information dedicated goods prior to the promotion period, except for promotions conducted through forms prescribed in Articles 7, 8, 11, 12, and 13 of Decree 37/2006/NĐ-CP.
10. The total value of mobile communication services and mobile communication information dedicated goods used for promotion in one promotion program shall not exceed 50% of the total value of the promoted mobile communication services and mobile communication information dedicated goods, except for promotions prescribed in Article 7 of Decree 37/2006/NĐ-CP.
Chapter II
PROMOTION FORMS
Article 6. Providing sample goods and offering sample services for customers to try without payment
The form of providing sample goods and offering sample services for customers to try without payment as stipulated in Article 7 of Decree 37/2006/NĐ-CP shall be implemented as follows:
1. Not to give away SIM cards containing mobile phone numbers or mobile phones pre-installed with mobile phone numbers to customers who have not registered to try out the mobile information service of the enterprise.
2. To offer sample mobile information services for customers to try out without payment under the following conditions:
a) The sample mobile information service is a service currently undergoing testing according to a trial service permit issued by the Ministry of Information and Communications or a new service provided by the enterprise to the market within twelve months;
b) Customers voluntarily register to try out the service;
c) The trial period for the mobile information service does not exceed one month and the total prepaid subscription fee if required to be paid before the promotional period does not exceed 100,000 VND;
d) After the trial period, the mobile enterprise is responsible for reclaiming the mobile phone number that was issued to the customer for trying out the service.
Article 7. Giving goods to customers and offering services without payment not accompanied by the purchase or sale of goods or services
The form of giving goods to customers and offering services without payment not accompanied by the purchase or sale of goods or services as stipulated in Article 8 of Decree 37/2006/NĐ-CP shall be implemented in cases where the given goods and offered services without payment are not specialized mobile information goods or mobile information services.
Article 8. Selling goods and offering services at a lower price than the previous price
1. The form of selling specialized mobile information goods at a lower price than the previous price (hereinafter referred to as discount promotion) as stipulated in Article 9 of Decree 37/2006/NĐ-CP is the sale of specialized mobile information goods at a price lower than the selling price before the promotion program or the provision of mobile information services at a tariff lower than the tariff when the enterprise has no promotional program whatsoever.
2. Discount promotions on the sale of specialized mobile information goods can be carried out through the following methods:
a) Reducing the price of SIM cards containing mobile phone numbers;
b) Reducing the price of mobile phones pre-installed with mobile phone numbers;
c) Reducing the price of recharge cards;
d) Giving away recharge cards when customers buy recharge cards;
đ) Other methods as prescribed by the Ministry of Information and Communications.
3. The maximum discount rate during promotions for the price of SIM cards containing mobile phone numbers, the price of mobile phones pre-installed with mobile phone numbers, and the price of recharge cards shall not exceed 50% of the selling price of such specialized goods immediately prior to the promotion period (Example: the price of a SIM card containing a mobile phone number before the promotion is 50,000 VND/SIM, then during the promotion, the maximum discount rate is 25,000 VND/SIM). The maximum gift rate during promotions for recharge cards shall not exceed 100% of the face value of the sold recharge card (Example: before the promotion, the price of a recharge card with a face value of 100,000 VND is 100,000 VND/card, then during the promotion, if a customer buys a recharge card with a face value of 100,000 VND at 100,000 VND/card, the mobile enterprise may give the customer an additional card with a face value of 100,000 VND).
4. Mobile enterprises may carry out promotions using the above methods for one or several units of specialized mobile information goods as stipulated in Clause 1 of Article 4 of this Circular but must ensure that all actual selling prices of SIM cards containing mobile phone numbers, mobile phones pre-installed with mobile phone numbers, and recharge cards when applying different promotional methods simultaneously do not decrease more than 50% of the selling price of such goods immediately prior to the promotion period (Example 1: before the promotion, the price of a recharge card with a face value of 100,000 VND is 100,000 VND/card, if the enterprise promotes a reduction of 50,000 VND/card and simultaneously gives the customer an additional recharge card with a face value of 50,000 VND, it violates the principle above, because in reality, the customer only needs to pay 50,000 VND to obtain 150,000 VND worth of recharge cards or the selling price of the recharge card has decreased more than 50% of the selling price before the promotion. Example 2: before the promotion, the price of a recharge card with a face value of 100,000 VND is 100,000 VND/card, if the enterprise promotes a reduction of 25,000 VND/card and simultaneously gives the customer an additional recharge card with a face value of 50,000 VND, it does not violate the principle above, because in reality, the customer has to pay 75,000 VND to obtain 150,000 VND worth of recharge cards or the selling price of the recharge card has not decreased more than 50% of the selling price before the promotion).
5. Discount promotions on mobile information service tariffs can be carried out through the following methods:
a) Reducing the network connection fee, daily subscription fee, monthly subscription fee, and information tariff;
b) Increasing communication time, data volume, or information packages when the subscriber uses the service;
c) Other forms as prescribed by the Ministry of Information and Communications.
6. The maximum discount rate for the network connection fee, daily subscription fee, monthly subscription fee, and information tariff during promotions shall not exceed 50% of the tariff immediately prior to the promotion period (Example: the information tariff before the promotion is 1,000 VND/minute, then during the promotion, the maximum discount rate for the tariff is 500 VND/minute). The maximum increase rate for communication time, data volume, or information packages while keeping the tariff unchanged shall not exceed 100% of the communication time, data volume, or information package immediately prior to the promotion period (Example: before the promotion, a subscriber sends one message and must pay 300 VND, then during the promotion, if the subscriber sends one message at 300 VND, the subscriber can send an additional one message without paying extra).
7. Mobile enterprises may implement promotions through the methods specified above for one or simultaneously multiple service units prescribed in Clause 2, Article 3 of this Circular but must ensure that all actual rates (network registration, daily subscription, monthly subscription, information) when applying promotions for multiple service units simultaneously shall not be reduced by more than 50% of the rates immediately prior to the promotion period (Example 1: The rate for SMS before the promotion is 300 VND/SMS. If the enterprise promotes the SMS rate at 150 VND/SMS and gives an additional SMS if the subscriber sends one SMS, it violates this principle because in reality, the subscriber sending two SMSs only has to pay 150 VND, or the actual rate after applying the promotion simultaneously for both the information rate and the information package is 75 VND/SMS, which exceeds a 50% reduction from the SMS rate before the promotion. Example 2: The rate for SMS before the promotion is 300 VND/SMS. If the enterprise promotes the SMS rate at 100 VND/SMS and gives an additional SMS if the subscriber sends four SMSs, it does not violate this principle because in reality, the subscriber sending five SMSs has to pay 800 VND, or the actual rate after applying the promotion simultaneously for both the information rate and the information package is 160 VND/SMS, which does not exceed a 50% reduction from the SMS rate before the promotion).
8. The total duration of implementing discount programs for each mobile telecommunications service brand specified in Clause 1, Article 3 and each dedicated mobile telecommunications product brand specified in Clause 1, Article 4 of this Circular shall not exceed ninety days in a year. A single discount promotion shall not exceed forty-five days.
9. The rate for mobile telecommunications services after mobile enterprises with dominant market share implement discount promotions shall not be lower than the cost of the service that the enterprise has registered with the Ministry of Information and Communications.
Article 9. Sale and provision of services accompanied by purchase vouchers, service usage vouchers
The form of sale and provision of services accompanied by purchase vouchers, service usage vouchers as stipulated in Article 10 of Decree No. 37/2006/NĐ-CP when applied in the field of mobile telecommunications must comply with the following principles:
1. When customers purchase SIM cards containing mobile phone numbers or mobile phones pre-installed with mobile phone numbers for network registration, the enterprise may give customers service usage vouchers for mobile telecommunications services provided by the enterprise itself or purchase vouchers for goods or service usage vouchers of other traders. This promotional form shall not apply to dedicated mobile telecommunications products (no issuance of purchase vouchers for SIM cards containing mobile phone numbers, purchase vouchers for mobile phones pre-installed with mobile phone numbers, or purchase vouchers for recharge cards).
2. Service usage vouchers for mobile telecommunications services are vouchers for purchasing communication time, data volume, or information packages issued by mobile enterprises and are only valid when the customer has registered their network and has used at least the communication time, data volume, or information package indicated on the service usage voucher (Example: A service usage voucher gifts the customer 100 minutes of communication. The rate before the promotion is 1000 VND/minute. To comply with the principle above, the subscriber must call for 100 minutes at a rate of 1000 VND/minute to enjoy the 100 minutes of the service usage voucher). The content of mobile service usage vouchers must include relevant information as prescribed in Article 97 of the Trade Law.
3. Promotions using service usage vouchers for mobile telecommunications services must comply with the provisions set out in Point b Clause 5, Clauses 6, 7, 8, and 9 of Article 8 of this Circular.
Article 10. Regular Customers
Regular customers as defined in Article 13 of Decree 37/2006/NĐ-CP include:
1. Subscribers using prepaid mobile information services of enterprises for at least 12 consecutive months with a minimum usage amount of 1,000,000 VND during that period;
2. Subscribers using postpaid mobile information services.
Article 11. Other Promotional Forms
In addition to the promotional forms prescribed in Articles 6, 7, 8, 9, and 10 of this Circular, other promotional forms shall be implemented in accordance with the Law on Trade and Decree No. 37/2006/NĐ-CP.
Chapter III
REPORTING, INSPECTION, SUPERVISION AND VIOLATION HANDLING
Article 12. Notification and Registration for Promotion Implementation
1. Mobile enterprises are responsible for fully implementing the contents regarding notification and registration for organizing promotions as stipulated in Section 3, Chapter 2 of Decree 37/2006/NĐ-CP.
2. When implementing promotion programs through discount forms and sales and service provision forms accompanied by purchase vouchers or service use vouchers within the territory of one province or city, in addition to notifying the Departments of Industry and Trade, mobile enterprises must also send a copy of the notification to the Department of Information and Communications. When implementing promotion programs through discount forms and sales and service provision forms accompanied by purchase vouchers or service use vouchers across two or more provinces or cities, in addition to notifying the Departments of Industry and Trade, mobile enterprises must simultaneously send a copy of the notification to the Ministry of Information and Communications for it to forward to relevant Departments of Information and Communications.
Article 13. Publicizing Information and Reporting
1. When implementing promotions in the mobile information sector, mobile enterprises must publicly disclose the information as prescribed in Article 97 of the Law on Trade.
2. Mobile enterprises are responsible for reporting annually to the Ministry of Information and Communications about the list, forms, and content of their promotion programs. When implementing promotions, mobile enterprises must clearly identify and report fully and accurately upon written request from the Ministry of Information and Communications on the following information:
a) The price of services and goods listed and publicly announced immediately before the promotion period;
b) The value of a unit of service or good used for promotion;
c) The total value of services and goods promoted in one promotion program;
d) The total value of services and goods used for promotion in one promotion program;
đ) The selling price of goods and the service supply price given to customers for the promotion form prescribed in Article 7 of this Circular;
e) The absolute value or percentage lower than the normal selling price of goods and service supply price before the promotion period for the promotion form prescribed in Article 8 of this Circular;
g) The monetary value or specific benefit that customers receive from purchase vouchers or service use vouchers; the place of sale and service provision and types of goods and services that customers can receive from purchase vouchers or service use vouchers for the promotion form prescribed in Article 9 of this Circular;
h) The costs that customers must bear themselves for the promotion form prescribed in Article 10 of this Circular.
Article 14. Inspection and Audit
Organizations and individuals are subject to inspection and supervision by competent state management agencies regarding promotional activities in the telecommunications sector.
The Ministry of Information and Communications' Inspectorate and Inspectors of the Departments of Information and Communications have the responsibility to coordinate with competent state management agencies regarding promotional activities in the telecommunications sector to inspect the promotional activities of mobile information enterprises.
Article 15. Handling Violations
During the inspection process, if violations of the law are discovered, they will be handled according to the provisions of the law on promotions and telecommunications based on the nature and degree of violation.
Chapter IV
IMPLEMENTING PROVISIONS
Article 16. Implementation Provisions
Article 14. Effective Date
1. This Circular takes effect from July 1, 2010.