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Viettel becoming too dominant

Released at: 09:50, 19/06/2015

Viettel becoming too dominant

MIC to exert stricter control over telecoms provider given the size of its market share.

by Quynh Nguyen

The Viettel Group has officially become the only telecommunications enterprise to have significant market power (SMP) in Vietnam’s telecoms market, according to the Ministry of Information and Communications (MIC).

MIC has issued Circular No. 15 on telecoms enterprises that have a dominant market position in important services. Viettel is the only enterprise to have SMP in land mobile services in terms of phones, messaging, and the internet.

Previously, in Circular No. 18 issued in 2012, MIC listed three telecoms enterprises dominating the Vietnamese market: Viettel, MobiFone, and Vinaphone. Under the Law on Competition, an enterprise is considered to have SMP if its market share is higher than 30 per cent or it has the ability to restrict competition in the relevant market.

MIC has now showed that Viettel has more than 50 per cent market share, while both MobiFone and Vinaphone have 18 per cent (30 per cent lower). Viettel, therefore, as the leading enterprise in the telecoms market, and will be strictly managed by the State.

From June 15 the military-run enterprise must register with the MIC when adjusting fees and offering promotions and is only permitted to do so with the ministry’s approval. And they are not permitted to charge lower than cost price.

Meanwhile, enterprises with a market share of less than 30 per cent can adjust their fees and offer promotions without any registration requirements and are not prohibited from charging fees at lower than cost price.

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