Mobile-fixed connection fee increased to spur fixed line uptake

16 Aug 2011

Vietnam’s Ministry of Information and Communications (MIC) is set to increase interconnection rates for mobile to fixed telephony calls, in a bid to slow the decline in fixed line subscribers, Viet Nam News reports. From 1 October 2011 the fee will rise from the current rate of VND270 (USD0.013) per minute to VND415 (excluding VAT) per minute. Bui Quoc Viet, an official of the state-owned national PTO Vietnam Posts and Telecommunications Group (VNPT), said the move is partly designed to help the development of fixed line networks and also minimise losses for fixed telephone service providers. VNPT said it loses around 60,000 fixed telephone subscribers annually in Hanoi alone. Meanwhile, TeleGeography’s GlobalComms Database states that the number of wireless subscribers continue to rise – albeit at a slower rate than previous years – increasing 16.1% in 2010 to reach 121.97 million, corresponding to a population penetration rate of over 130%.