Brian Jeffrey
New regulations for wholesale activities in the telecommunications sector have been unveiled by the Ministry of Information and Communications (MIC). Expected to come into force on August 23, 2024, Circular 08 provides detailed guidelines in line with the 2023 Law on Telecommunications.
With a view to leveling the playing field in the telecom market, the Authority of Telecommunications (AOT), the architect of Circular 08, highlights the need for expansive investment in infrastructure by few telcos, making access to telecommunications resources limited. As a result, other firms can engage in wholesale relationships, paying fees to utilize existing infrastructure to deliver services to end-users.
The 2023 Law on Telecommunications incorporates provisions to streamline wholesale telecom services, encouraging competition, infrastructure sharing, and the free flow of telecom services among businesses. The introduction of Circular 08 by MIC reinforces these efforts by fostering a favorable environment for telcos to procure wholesale services under fair conditions and at justifiable prices.
By regulating the wholesale market, the ministry’s initiatives are poised to bolster competition in the retail space, offering consumers a wider array of services and service package options. Vu The Binh from the Vietnam Internet Network Association (VIA) lauds the move, asserting that a legal framework for wholesale telecom services aligns with the characteristics of Vietnam’s telecom market and is expected to yield positive outcomes for the industry.
Anticipating a structured and transparent wholesale landscape, Binh predicts a surge in businesses entering the market, thereby fostering infrastructure sharing and healthy competition. Drawing from the industry’s past successes, Binh is convinced that formalizing wholesale activities of telecom services will be highly advantageous, particularly for end-users.
By clarifying the roles in the value chain from wholesale to retail, stakeholders can focus on their areas of expertise, improving service efficiency and benefitting both wholesalers and buyers. Furthermore, the predictability and impact of policies in the market will be enhanced, resulting in more reasonable service fees and a positive market outlook.
