Decision No. 32/2006/QD-TTg Approves the Telecommunications and Internet Development Plan for Vietnam until 2010

Pursuant to …;

Approve the Telecommunications and Internet Development Plan for Vietnam until 2010  until 2010

________________________________

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

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

On the basis of Decree No. 160/2004/NĐ-CP dated September 3, 2004 of the Government detailing the implementation of certain provisions of the Ordinance on Posts and Telecommunications regarding telecommunications;

On the basis of Decree No. 55/2001/NĐ-CP dated August 23, 2001 of the Government on management, provision, and use of Internet services;

On the basis of Decree No. 90/2002/NĐ-CP dated November 11, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Posts and Telecommunications;

On the basis of Decision No. 158/2001/QĐ-TTg dated October 18, 2001 of the Prime Minister approving the Strategy for the Development of Posts and Telecommunications in Vietnam until 2010 and orientations until 2020;

On the basis of Decision No. 246/2005/QĐ-TTg dated October 6, 2005 of the Prime Minister approving the Strategy for the Development of Information Technology and Telecommunications in Vietnam until 2010 and orientations until 2020;

At the proposal of the Minister of Posts and Telecommunications and the Minister of Planning and Investment,

DECISION:

Article 1. Approve the Telecommunications and Internet Development Plan for Vietnam until 2010 with the following main contents:

I. OBJECTIVES

1. Building and developing modern telecommunications infrastructure at par with other countries in the region, covering the entire country with large capacity, high quality, providing multiple services, and operating effectively.

2. Telecommunications and Internet become leading industries, contributing increasingly to GDP growth, creating many jobs for society. The growth rate reaches 1.5 to 2 times the overall economic growth rate; by 2010, total revenue from telecommunications and Internet services will reach approximately 55 trillion VND (3.5 billion USD).

3. Providing telecommunications and Internet services with good quality and reasonable tariffs to meet diverse user needs.

4. Ensuring information security for all activities applying and developing information technology and telecommunications in all political, economic, and social fields.

5. Accelerating the popularization of telecommunications and Internet throughout the country, narrowing the service usage gap between regions, promoting economic and social development, and contributing to national defense and security.

II. TARGETS

1. Service development targets:

a) Providing modern, diverse, and abundant telecommunications and Internet services to society and consumers at tariffs equivalent to or lower than the regional average, meeting information needs for economic, social, security, and defense purposes. Implementing universal access to telecommunications and Internet services across all regions of the country with increasing service quality and customer satisfaction. By 2010, the telephone density will be 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 will be from 8 to 12 subscribers per 100 people (of which 30% are broadband subscribers); the Internet usage rate will be 25% to 35% of the population.

b) Ensuring that the majority of civil servants, teachers, doctors, university and college students, vocational and secondary school students have access to the Internet.

c) Promoting the universal provision of fixed-line telephone and Internet services to all communes nationwide. By 2010, ensuring 100% of communes have public telephone access points, 70% of communes have public Internet access points, and 100% of districts and most communes in key economic zones are provided with broadband Internet services.

d) Ensuring free access for users to essential services such as fire information, medical emergency, and urgent security and social order information. Maintaining and expanding emergency search and rescue and disaster prevention and mitigation information.

2. Network development targets:

a) Developing large-capacity international and inter-provincial telecommunications networks with high safety and reliability, connecting multiple routes based on submarine optical cables, land-based optical cables, and satellite communication systems, meeting the demand for broadband service provision.

b) Expanding optical cable networks to all districts nationwide. For important areas, forming ring-structured optical cable networks to enhance information security.

c) Extending mobile communication coverage to all districts nationwide, almost all communes in key economic zones, and major national highways and provincial roads.

d) Ensuring that all ministries, government agencies, provincial and district authorities are connected to broadband Internet and the government's wide area network; 100% of research institutes, universities, colleges, and secondary schools have broadband Internet access; over 90% of middle schools and hospitals are connected to the Internet.

III. DIRECTION FOR DEVELOPMENT

1. Market development orientation:

a) Creating a fair and healthy competitive market environment conducive to cooperation and development among telecommunications and Internet enterprises. By 2010, the market share of new enterprises (outside the Vietnam Post and Telecommunications Group) for important services such as international calls, leased circuits, mobile communications, and broadband Internet will reach 40 to 50%.

b) Creating conditions for various economic sectors to invest and operate in providing telecommunications and Internet services, particularly in resale services, value-added services, and Internet.

c) Vietnamese telecommunications and Internet enterprises effectively exploiting the domestic market, moving towards expanding business and investment abroad.

2. Network development orientation:

a) Building and developing advanced and modern telecommunications and Internet network infrastructure operating efficiently, safely, and reliably, covering remote and border areas.

b) Gradually transitioning to deploying next-generation networks (NGN) suitable for each enterprise's specific conditions, aiming to provide multiple services on a unified telecommunications infrastructure.

c) Vigorously build optical cable networks to rural communes in rural areas and develop optical cable networks to residential clusters and large buildings in urban areas.

d) Quickly complete peripheral networks with a focus on increasing the use of optical fiber cables and enhancing underground cable ratios to improve service quality and urban aesthetics.

đ) Vigorously develop broadband access networks to ensure the development of applications such as electronic government, e-commerce, remote education, and telemedicine.

e) Vigorously develop mobile telecommunications networks, moving towards third-generation and subsequent generation mobile information systems.

3. Direction for service development:

a) Prioritize the development of new services that align with the convergence trends of broadcasting, television, information technology, and telecommunications, as well as the convergence of fixed-line telecommunications services with mobile telecommunications services.

b) Focus on developing strong mobile services, broadband services, and value-added services based on existing infrastructure investments.

c) Quickly deploy Internet application services such as electronic government, e-commerce, multimedia communication, entertainment, etc.

d) Create favorable conditions for transmission services, broadcasting services, channel leasing services, and virtual private network (VPN) services to fully exploit capacity and ensure efficient use of public telecommunications networks.

IV. IMPLEMENTATION STRATEGIES

1. Improve the legal environment and enhance state management capabilities in telecommunications and the Internet:

a) Improve the legal environment

- Complete the legal system regarding telecommunications and the Internet to leverage internal strength, create a fair and healthy competitive environment.

- Study the construction and issuance of the Telecommunications Law.

- Develop and issue regulations on information security and safety.

- Develop and issue guiding documents related to telecommunications and the Internet within the scope of the Electronic Transactions Law and the Information Technology Law.

b) Enhance the effectiveness of state management

- Continue to perfect the state management machinery for telecommunications and the Internet from central to local levels, focusing on building, completing, and enhancing the capabilities of specialized agencies responsible for telecommunications, radio frequency, the Internet, and information security and safety.

- Implement training programs and develop human resources for state management of telecommunications and the Internet at central and local levels in accordance with competition and integration requirements. Prioritize leadership information technology (CIO) training programs and advanced experts in telecommunications and the Internet.

- Ensure timely and high-quality implementation of investment programs and projects to complete material facilities, working conditions, and enhance the capabilities of central and local state management agencies for telecommunications and the Internet, in line with their assigned functions and tasks.

- Implement standardization of operational procedures (ISO) and promote the application of information technology in state management of telecommunications and the Internet.

2. Establish mechanisms, policies, and enforce laws to leverage internal strength and promote competition in the telecommunications and Internet sector:

a) Licensing service provision telecommunications and the Internet:

- Plan the number of enterprises providing network infrastructure based on principles ensuring a healthy market development, creating conditions for enterprises to accumulate capital, maintain and expand business operations; utilizing existing telecommunications and Internet infrastructure, improving the efficiency of state investment; effectively and economically using telecommunications resources and national resources.

- Have mechanisms and policies for licensing that encourage enterprises to participate in reselling services, providing value-added services, and Internet services based on existing network infrastructure; developing intra-network infrastructure to provide broadband access and computer network connection services; utilizing existing infrastructure (cable TV, information over power lines, etc.) to provide combined telecommunications and Internet services with other services.

b) Tariffs, fees, and charges: cước, phí và lệ phí:

- Adjust tariffs for telecommunications and Internet services based on cost and market supply and demand relationships. Gradually adjust current service tariffs that are lower than costs to ensure business efficiency under competitive and international integration conditions.

- Gradually adjust interconnection tariffs and channel leasing tariffs between enterprises based on costs. Clearly define contributions to the provision of public telecommunications services in interconnection tariffs.

- Respect the right of telecommunications and Internet enterprises to set their own tariffs. Avoid administrative intervention in tariff adjustments for services that are truly competitive. The State only determines tariffs for public services and market-controlling services affecting market entry by other enterprises.

- Gradually reform the system of licensing fees, usage fees for telecommunications and Internet resources (frequencies, numbering, domain names, Internet addresses) according to the principle of ensuring effective and economical use, avoiding waste of resources, while not excessively increasing production and business costs for enterprises.

c) Standards, network and service quality:

- Vigorously build standards in the field of telecommunications and the Internet in accordance with Vietnamese law, international practices, and regulations.

- Strengthen network and service quality management through the publication of quality based on mandatory standards or voluntary standards adopted by telecommunications and Internet enterprises.

- Strengthen terminal equipment, radio communication equipment, and other equipment capable of interfering with radio communications quality management through forms such as compliance with standards, certification, mutual recognition (MRA), electromagnetic compatibility (EMC) management.

d) Interconnection and shared use of telecommunications and Internet infrastructure:

- Review and approve special mechanisms for enterprises to apply regarding investment and bidding in urgent cases to ensure network connection capacity between enterprises.

- Develop and promulgate regulations on public telecommunications network interconnection to facilitate the signing and implementation of interconnection agreements among enterprises.

- Develop and promulgate criteria for evaluating network capability and economic and financial mechanisms to serve the implementation of interconnection and resolution of disputes between enterprises.

- For certain services with low levels of competition, consider applying asymmetric management mechanisms in interconnection to promote competition and create conditions for new enterprises to enter the market.

- Encourage the shared use of telecommunications and Internet infrastructure including: equipment installation locations, switching equipment, conduits, cable pits, cables, optical fibers, antenna towers, indoor auxiliary equipment, and other means.

- Create favorable conditions for telecommunications enterprises to lease infrastructure from other sectors such as television and power to establish networks providing telecommunications and Internet services.

- Gradually study and appropriately apply certain special mechanisms in specific areas and under certain conditions: roaming between mobile networks to serve public welfare and national defense and security tasks; unbundling of local loops to promote competition and create favorable conditions for service users.

d) Telecommunications and Internet resources:

- Plan telecommunications and Internet resources based on ensuring efficient and effective investment and use.

- Prioritize planning and allocation of resources for new technologies and services such as next-generation Internet, new mobile information services, broadband wireless access, etc.

- Study and test new resource systems such as IPv6, ENUM, etc., to meet the rapid development requirements of networks and services.

- Gradually study and consider applying number portability mechanisms and carrier pre-selection mechanisms for domestic and international long-distance calls to promote competition and create favorable conditions for service users.

e) Ensure information security:

- Develop and perfect regulations on ensuring information security on telecommunications and Internet networks.

- Develop, perfect, and enhance the capabilities of computer incident response and prevention systems against cybercrime.

- Apply cryptographic technologies and solutions to increase reliability and security for transactions on telecommunications and Internet networks.

g) Enforcement of laws:

- Strengthen inspections and supervision of telecommunications and Internet business activities, particularly those related to network interconnection, tariffs, and service quality.

- Comprehensively apply economic, technical, and operational measures while enhancing inter-agency coordination to effectively prevent illegal business activities in the telecommunications and Internet sector.

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

3. Enhance the competitiveness of enterprises and ensure requirements for international economic integration:

a) Reform organizational and production management of enterprises. stock,

Form strong telecommunications groups and corporations with modern technology and management levels, high specialization, multi-industry but mainly focused on telecommunications and Internet businesses.

Telecommunications and Internet enterprises must ensure business autonomy, independent accounting, and gradually eliminate cross-subsidies among telecommunications and Internet services.

- Gradually define the implementation of public interest tasks and business operations of enterprises based on adjusting interconnection tariffs and implementing the Public Telecommunications Service Fund.

- Accelerate the process of equitization of enterprises according to approved plans, initially focusing on value-added service provision, Internet, and mobile information services.

- Encourage and create conditions for equitized telecommunications and Internet enterprises to list on domestic and foreign stock markets.

b) International cooperation:

- Continue to improve the effectiveness of cooperation in existing international joint projects.

- Seek opportunities and implement new forms of cooperation in accordance with Vietnamese investment laws and international commitments.

- Seek overseas investment and business markets in compliance with international laws and practices.

c) Mobilize investment capital:

- Implement enterprise reform, adjust production and investment structures, create conditions for enterprises to operate efficiently, accelerate internal capital accumulation, and reinvest for development.

- Increase attraction of domestic economic components' investment capital such as credit, construction bonds, self-owned capital, shares, and capital through the stock market for telecommunications and Internet development. Focus on capital mobilization through enterprise equitization and service resale to allow people to participate in telecommunications and Internet development investment.

- Continue to attract foreign direct investment (FDI) for telecommunications and Internet development.

- Utilize official development assistance (ODA) funds for telecommunications and Internet development in rural, mountainous, remote, and island areas and to serve other public welfare tasks.

- The total investment capital for key projects during the 2006-2010 period is estimated at VND 100,500 billion (see attached annex).

d) Develop human resources:

- Apply special incentive policies for excellent management, economic, and technical expert teams to meet the requirements of international integration and increasingly fierce competition in the telecommunications and Internet sector.

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

d) Develop science and technology:

- Focus on researching, applying, and transferring technology to contribute to organizational and business innovation, improve labor productivity and competitive capacity of telecommunications and Internet enterprises.

- Establish science and technology funds to support research, production, and testing of new technologies.

- Research and implement trials of advanced technologies in the field of telecommunications and Internet to take shortcuts, lead the way, and enhance the competitiveness of Vietnamese enterprises.

4. Reform the method of providing public telecommunications services in a competitive environment and international economic integration.

- Actively carry out the activities of the Public Telecommunications Service Fund to clearly distinguish between business operations and the fulfillment of public service tasks by enterprises during the period of competition and international economic integration.

- Develop and effectively implement the program for providing public telecommunications services from 2006 to 2010 to gradually increase the level of service coverage and reduce the development gap in telecommunications and Internet between regions nationwide.

- Establish a specialized unit responsible for providing telecommunications and Internet services to Party and State agencies to continue improving the quality of services and information security for dedicated telecommunications networks of the Party and State, while creating conditions for enterprises to focus on business operations, enhance their competitive capacity, and achieve successful integration.

Article 2. Manage and organize the implementation of the Master Plan

1. The Ministry of Posts and Telecommunications:

- Is responsible for organizing the implementation and monitoring the execution of the Master Plan. Based on the country's economic development situation, submit to the Prime Minister updates and adjustments to the plan as necessary for suitability.

- Develop and submit to the Government or promulgate within its authority mechanisms and policies to successfully implement the Master Plan for the development of telecommunications and the Internet in Vietnam until 2010, including:

+ Develop guiding documents related to telecommunications and the Internet in the Law on Electronic Transactions, the Law on Information Technology, and the Ordinance on Posts and Telecommunications.

+ Consider and study the development of the Telecommunications Law.

+ Develop and submit to the Prime Minister for issuance the Program for Public Telecommunications Services from 2006 to 2010.

+ Develop and submit to the Prime Minister for issuance a new pricing management mechanism to replace Decision No. 217/2003/QD-TTg dated October 27, 2003 of the Prime Minister on the management of postal and telecommunications service rates.

- Study and perfect the organizational model of state management agencies specializing in telecommunications, radio frequencies, the Internet, and information security to meet the requirements of the competitive and integrated phase.

- Direct the reform of the production and business organization of telecommunications enterprises towards forming strong groups and holding companies with high specialization, independent accounting, and autonomous operation. 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.

- Based on market development trends at each stage, submit to the Prime Minister decisions on granting licenses to enterprises providing telecommunications and Internet infrastructure.

- Develop and perfect emergency investment mechanisms to serve the connection of public telecommunications networks.

2. Ministries: Finance, Planning and Investment, Home Affairs, Public Security, Transport:

- The Ministry of Finance will cooperate with the Ministry of Posts and Telecommunications in developing a new pricing management mechanism and directing the implementation of the shareholding reform of telecommunications and Internet enterprises; issue Financial Regulations on the activities of the Public Telecommunications Service Fund; ensure budget allocation and disbursement for the provision and use of telecommunications and Internet services by Party and State agencies; issue financial mechanisms for the provision of telecommunications and Internet services for national defense and security purposes.

- The Ministry of Planning and Investment will cooperate with the Ministry of Posts and Telecommunications in implementing key investment projects listed in the Appendix; cooperate in developing investment and emergency bidding mechanisms to serve the connection of public telecommunications networks.

- The Ministry of Home Affairs will take the lead and cooperate with the Ministry of Posts and Telecommunications to further perfect the state management machinery for telecommunications, the Internet, and develop plans for enterprise reform.

- The Ministry of Public Security will take the lead and cooperate with the Ministry of Posts and Telecommunications to issue regulations ensuring network safety and information security in the field of telecommunications and the Internet.

- The Ministry of Transport will take the lead and cooperate with the Ministry of Posts and Telecommunications to issue guidelines for the construction of telecommunications transmission lines along transportation routes, bridges, culverts, and sidewalks to accelerate the progress of telecommunications and Internet projects and works.

3. Ministries, sectors; provinces and centrally governed cities:

- Ministries, sectors, and localities are responsible for implementing the industry development master plan according to their assigned functions and tasks, and in accordance with the specific characteristics of their industries and localities, in cooperation with the Ministry of Posts and Telecommunications, telecommunications and Internet enterprises.

- People's Committees of provinces and centrally governed cities direct the establishment of local post and telecommunications planning and the implementation of the Master Plan for the development of telecommunications and the Internet under their jurisdiction.

4. Telecommunications and Internet enterprises:

- Develop enterprise development plans in line with the Master Plan for the development of telecommunications and the Internet in Vietnam until 2010.

- Reform production and business organization according to the directives of the Ministry of Posts and Telecommunications and other relevant ministries and sectors.

- Implement shareholding reform according to approved plans.

Article 3. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, chairmen of provincial people's committees, chairmen of boards of directors, general managers, and directors of telecommunications and Internet enterprises, and heads of related agencies are responsible for enforcing this Decision./.