Conditions on grant of licenses for commercial provision of telecommunications services in Vietnam

Types of licenses for commercial provision of telecommunications services in Vietnam

Pursuant to Article 34 of the Law on Telecommunications 2006, a licenses for commercial provision of telecommunications services is a type of telecommunications license, including:

- License for establishment of telecommuni­cations networks which is valid for 15 years or less and granted to service providers with network infrastructure:

- License for provision of telecommunica­tions services which is valid for 10 years or less and granted to service providers without network infrastructure.

Conditions on grant of licenses for commercial provision of telecommunications services in Vietnam (Internet image)

Conditions on grant of licenses for commercial provision of telecommunications services in Vietnam

Conditions for granting a telecommunications service business license are specifically stipulated in Article 36 of the Law on Telecommunications 2006 as follows:

(1) A business will be granted a license for provision of telecommunications services when fully satisfying the following conditions:

- Having a business registration certificate or certificate of investment in commercial provision of telecommunications services;

- Having sufficient financial capability, organizational structure and manpower suitable to size of projects;

- Working out technical plans and feasible business plans in line with the national telecommunications development strategy and plan, and in compliance with regulations on the telecommunications resources, connection, charge rates, technical standards and regulations, and quality of telecommunications networks and services;

- Taking measures to assure the safety of telecommunications infrastructure and information security.

(2) A business will be granted a license for establishment of a public telecommunications network when fully satisfying the following conditions:

- Having a business registration certificate or certificate of investment in commercial provision of telecommunications services;

- Having sufficient financial capability, organizational structure and manpower suitable to size of projects;

- Working out technical plans and feasible business plans in line with the national telecommunications development strategy and plan, and in compliance with regulations on the telecommunications resources, connection, charge rates, technical standards and regulations, and quality of telecommunications networks and services;

- Taking measures to assure the safety of telecommunications infrastructure and information security.

- Have a legal capital and made a committed investment capital according to the Government's regulations.

The legal capital and commitment amount for investment to set up fixed ground telecommunication networks in Vietnam

Pursuant to Article 19 of Decree 25/2011/ND-CP, the legal capital and commitment amount for investment to set up fixed ground telecommunication networks is as follows:

(i) Enterprises applying for a license for establishing fixed telecommunication network without using wireless electric frequency bands, telecommunication subscribers must meet the conditions for legal capital and commitment amount for investment as follows:

- Establishing a network within one province or centrally-affiliated city: Legal capital: VND 5 billion; investment commitment amount: At least VND 15 billion for first 3 years from the date of licensing to develop telecommunication network in accordance with the license;

- Establishing the network within a region (from 2 to 30 provinces and centrally-affiliated cities): Legal capital: 30 billion VND; investment commitment amount: At least 100 billion VND for first 3 year after being granted a license to develop telecommunication network as specified in the license;

- Establishment of a nationwide network (over 30 provinces and centrally-affiliated cities): Legal capital: 100 billion VND; investment commitment amount: At least 300 billion VND for the first 3 years to develop the telecommunication network in accordance with the license.

(ii) Enterprises applying for a license for establishing fixed telecommunication network that uses wireless electric frequency band, number of telecommunication subscribers must meet the conditions for legal capital and commitment amount for investment as follows:

- Establishment of networks within a region (from 15 to 30 provinces and centrally-affiliated cities): Legal capital: 100 billion VND; investment commitment amount: At least 300 billion VND for first 3 years after being granted a license to develop telecommunication network in accordance with the license;

- Establishing a nationwide network of (over 30 provinces and centrally-affiliated cities): Legal capital: 300 billion VND; investment commitment amount: At least 1,000 billion VND for the first 3 years and at least 3,000 billion VND in 15 years to develop telecommunication network in accordance with the license.

Legal capital and commitment amount for investment to set up mobile ground telecommunication network in Vietnam

Pursuant to Article 20 of Decree 25/2011/ND-CP, legal capital and commitment amount for investment to set up mobile ground telecommunication network is as follows:

- Enterprises applying for a license for establishing ground mobile telecommunication networks with wireless electric frequency channel shall meet the conditions for legal capital and commitment amount for investment as follows:

+ Legal capital: 20 billion VND;

+ Investment commitment amount: At least 60 billion VND for the first three years to develop telecommunication networks with the scale and scope specified in the license.

- Enterprises applying for a license for establishing ground mobile telecommunication network without using terrestrial wireless electric frequency band (a virtual mobile telecommunication network) must meet the conditions for legal capital and commitment amount for investment as follows:

+ Legal capital: 300 billion VND;

+ Investment commitment amount: At least 1,000 billion VND for the first three years and at least 3,000 billion VND in 15 years to develop telecommunication network in accordance with the license.

- Enterprises applying for a license for establishing ground mobile telecommunication networks that use wireless electric frequency bands must meet the conditions for legal capital and commitment amount for investment as follows:

+ Legal capital: 500 billion VND;

+ Investment commitment amount: At least 2,500 billion VND for the first three years and at least 7500 billion VND in 15 years to develop telecommunication network in accordance with the license.

Legal capital and investment commitment level to establish satellite fixed and mobile telecommunications networks
Pursuant to Article 21 of Decree 25/2011/ND-CP stipulates that enterprises applying for a license to establish satellite fixed and mobile telecommunications networks must meet the conditions of legal capital and investment commitment as follows: after:

- Legal capital: 30 billion VND;

- Investment commitment level: At least 100 billion VND in the first 3 years to develop a telecommunications network with the scale and scope specified in the license.

Mai Thanh Loi

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