Regulations on collection of fees for granting the right to use radio frequencies in Vietnam

Regulations on rates and methods of collection of fees for granting the right to use radio frequencies for frequency bands are specified at Decree 88/2021/ND-CP of Vietnam dated October 1, 2021, specifically as follows:

Regulations on collection of fees for granting the right to use radio frequencies (Illustration image)

Amount of fee

** For the case of renewal of the license to use a frequency band, the fee for granting the right to use radio frequencies (hereinafter referred to as the fee) is determined as follows:

In there:

MTth is the fee for granting the right to use radio frequencies for the period of renewal of the license to use the frequency band, the unit is Vietnam Dong;

MTCSMHz is the base rate of the frequency band for which the license is extended, determined and decided according to Articles 3, 4 and 5 of Decree 88/2021;

Bw is the bandwidth of the license extension, the unit is Megahertz (MHz);

T is the time the band is renewed for the license to use, the unit is in months.

** The rate for the case of frequency bands granted through the auction of the right to use radio frequencies is the auction winning amount.

Method of collecting fees

** In case of license renewal

- At least 06 months before the license expires, the Ministry of Information and Communications shall notify in writing the amount of money for granting the right to use radio frequencies to be paid, the deadline for payment and the method of payment to the business before carrying out the procedures for renewing the license in accordance with the law on radio frequencies.

At least 60 days before the expiry of the license's validity, the enterprise must pay once the entire amount for the grant of the right to use radio frequencies for the period of application for extension of the license to use the frequency band.

** For the case of auction of the right to use radio frequencies

- The Ministry of Information and Communications shall notify in writing the amount of money for granting the right to use radio frequencies to be paid, the time limit for payment and the method of payment for the enterprise to pay the fee for granting the right to use radio frequencies.

- Within 04 months from the date of notification, the enterprise must pay once the entire amount for granting the right to use radio frequencies, except for the case of band auction to develop and apply technology to effectively use the radio frequency spectrum prioritized and encouraged under the Prime Minister's decision.

** In case of auction of frequency bands for the development and application of technology to effectively use the radio frequency spectrum, priority and encouragement shall be given according to the decision of The Prime Minister, at the request of the Minister of Information and Communications of Vietnam, shall pay fees for granting the right to use radio frequencies according to the following provisions:

- Within 03 months from the date of notification, the enterprise must pay 50% of the radio frequency license fee once and submit the guarantee commitment of the credit institution, foreign bank's branch authorized to use the radio frequency established under Vietnamese law for the unpaid amount to ensure the implementation of the provisions of Points b and c of this Clause;

- Within 18 months from the date of notification, the enterprise must pay another 25% of the fee for granting the right to use radio frequencies;

- Within 36 months from the date of notification, the enterprise must pay another 25% of the amount for granting the right to use radio frequencies.

Note: Enterprises that do not fully or timely pay the amount for granting the right to use radio frequencies as prescribed above will not be granted a license to use the frequency band. For enterprises that win the auction, the Minister of Information and Communications of Vietnam cancels the decision approving the auction results.

Bao Ngoc

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