Mechanism and Principles for Controlling the Rental Price for Using Cable Networks in Buildings, Rental Price for Passive Telecommunications Infrastructure in Vietnam

Mechanism and Principles for Controlling the Rental Price for Using Cable Networks in Buildings, Rental Price for Passive Telecommunications Infrastructure in Vietnam​ (Image from the internet)

On July 2, 2024, the Minister of Information and Communications issued Circular 07/2024/TT-BTTTT detailing the mechanism and principles for controlling the rental price for using cable networks in buildings, rental price for passive telecommunications infrastructure among telecommunications enterprises, organizations, and individuals owning telecommunications works in Vietnam.

Mechanism and Principles for Controlling the Rental Price for Using Cable Networks in Buildings, Rental Price for Passive Telecommunications Infrastructure in Vietnam​

According to Article 3 of Circular 07/2024/TT-BTTTT, the mechanism and principles for controlling the rental price for using cable networks in buildings, rental price for passive telecommunications infrastructure are regulated as follows:

• The state manages the rent for building cable network use and passive telecommunications infrastructure based on market mechanisms under state regulation, respecting the pricing autonomy and competition rights of organizations and individuals investing in building cable networks and passive telecommunications infrastructure as stipulated by law.

• The state controls the rent for building cable network use and passive telecommunications infrastructure to protect the lawful rights and interests of lessees and lessors as well as the general social interest according to the law and this Circular.

• Rent control for building cable network use and passive telecommunications infrastructure is carried out through rent control methods and rent pricing methods specified in Circular 07/2024/TT-BTTTT.

Methods for Controlling the Rental Price for Using Cable Networks in Buildings, Rental Price for Passive Telecommunications Infrastructure in Vietnam​

• Listing the rent for building cable network use and passive telecommunications infrastructure.

• Checking the factors forming the rent for building cable network use and passive telecommunications infrastructure.

The checking of factors forming the rent for building cable network use and passive telecommunications infrastructure is conducted when there are abnormal fluctuations in rent or at the directive of the Prime Minister, Minister, Head of Ministry-equivalent agencies, or Chairman of the provincial People’s Committee.

• Negotiation of rent for building cable network use and passive telecommunications infrastructure.

The content and procedures for listing rent, checking factors forming the rent, and negotiating rent for building cable network use and passive telecommunications infrastructure are carried out according to the legal provisions on pricing.

(Article 4 of Circular 07/2024/TT-BTTTT)

Principles and Basis for Pricing Rent for Building Cable Network Use and Passive Telecommunications Infrastructure Rent in Vietnam

- Principles for Pricing Rent

+ The rent for building cable network use and passive telecommunications infrastructure must accurately and adequately reflect the costs of construction investment; operation, maintenance, and repair costs; and other costs as stipulated by law, corresponding with service quality and aligning with policies and the economic-technical norms and cost norms issued by competent authorities.

+ If organizations or individuals invest in building cable networks and passive telecommunications infrastructure for business under the rental model, the rent is determined based on regulatory costs and reasonable profit.

- Basis for Pricing Rent

+ Investment, production, and service supply costs appropriate to service quality.

+ Supply-demand relations and market prices.

+ Price changes, fluctuations, and state policy mechanisms; the price adjustment roadmap approved by competent authorities (if any).

+ Local economic and social development conditions affecting rent.

(Article 5 of Circular 07/2024/TT-BTTTT)

More details can be found in Circular 07/2024/TT-BTTTT.

Le Nguyen Anh Hao

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE