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Official Gazette

Sunday, October 22, 2017

Pay television service charges to be strictly managed

Updated: 10:19’ - 11/12/2014

Charge rates of basic pay television service packages will soon be set by the State, instead of service providers themselves as at present.

Under a draft decree on management, provision and use of radio and television services released by the Ministry of Information and Communications for public comment, pay television services are divided into four groups depending on their transmission and broadcasting modes, including cable television, digital terrestrial television, satellite television, and mobile television.

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International conference on opportunities for the development of pay TV services in the country_Photo: Minh Quyet/VNA

Pay television service providers may not provide services at charge rates too much lower than the average charge rate in the market.

Enterprises in the position of market dominance, e.g. holding at least 30 percent of the total market shares, will be prohibited from providing services at charge rates lower than cost prices. At the same time, they will have to register their service charge rates with state agencies before applying such charge rates to customers.

Under the draft, the Ministry of Information and Communications will apply a number of measures to manage pay television service charges, including setting maximum and minimum service charge rates and controlling elements constituting service charges. 

The Ministry will also have to make public information relating to pay television service charge rates and issue regulations on management of charge rates in each period. When finding charge rates applied by a service provider unreasonable, it might request the provider to stop applying such charge rates.

In an attempt to ensure fair competition in the pay television market, the Vietnam Pay Television Association is drafting a scheme on calculation of cost prices and floor charge rates of television services for submission to the Ministry of Information and Communications for promulgation.

According to the Association’s statistics, the country has six million pay television subscribers by the end of 2013.-

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