Ministry plans to raise tariff for fixed line calls

15 Oct 2008

VietNamNet Bridge reports that Vietnam’s Ministry of Information and Communications (MIC) is planning to raise the inter-province calling tariff on fixed line telephone services, which are said to be below cost price. An MIC spokesman said that the country’s wireline providers have long complained that the more they expand their reach, the more losses they incur. Under the plan, the tariff for intra-province calls will be increased from the current VND120 (USD0.007) per minute to VND200 (USD0.012) per minute, starting from next year until 2010. Meanwhile, the monthly subscription fee will be reduced from the current VND27,000 (USD1.66) to VND20,000 in a bid to attract new users. After 2010, operators will be allowed to adjust the tariffs in accordance with market changes, but the MIC will set a maximum. According to TeleGeography’s GlobalComms database, Vietnam had close to eleven million fixed line subscribers at the end of 2007. By the end of September this year, the MIC claimed there were 13 million.