No price discrimination when providing wholesale telecommunications services

Wholesale businesses are responsible for treating all customers equally in terms of pricing and service conditions when providing wholesale services. They provide wholesale services to wholesale buyers at the same price and with equivalent terms and conditions as the services they offer to their own business, their subsidiaries, business partners, and other wholesale buyers...

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The Ministry of Information and Communications is seeking public opinions on the draft Decree detailing wholesale activities in the telecommunications sector, stipulated in Point a and Point b, Clause 2 of Article 16 and Point d, Clause 3 of Article 17 of the Telecommunications Law No. 24/2023/QH15 (which will come into effect on July 1, 2024).

This Decree applies to telecommunications enterprises participating in wholesale activities in the telecommunications sector; organizations and individuals involved in the management and provision of telecommunications services in Vietnam.

The draft Decree specifies two obligations: non-discrimination and transparency when participating in wholesale activities. Specifically, wholesale enterprises are responsible for non-discrimination in terms of prices and terms and conditions of service when providing wholesale services.

Along with that, they must provide wholesale services to wholesale customers with the same prices, terms and conditions of service as those provided to themselves, their subsidiaries, business partners and other wholesale enterprises.

Differences in prices, conditions and terms of equivalent services must be based on objective differences, including: changes in the cost of service provision; changes in the quantity or quality of services provided; changes in the duration of the service contract.

Wholesale enterprises are responsible for transparency of information related to the services requested by wholesale customers. This information includes: Service prices through price declaration procedures as regulated by pricing laws; Information on technical specifications, network characteristics… as well as specific terms and conditions for service provision and use.

At the same time, they must transparently disclose the model service agreement as specified in this Decree, in case the two wholesale enterprises cannot reach an agreement themselves.

According to the draft Decree, telecommunications services must be provided in the form of agreement-based services and must be telecommunications services within the scope of the State-managed telecommunications service market list. The State-managed telecommunications service market list is regulated by the Ministry of Information and Communications.

For leased cable network services within buildings, leased passive telecommunications infrastructure services are not within the scope of this Decree.

Within 30 working days from the date a telecommunications enterprise is determined to be the leading telecommunications enterprise in the market for telecommunications services within the state-managed telecommunications service market list, the enterprise must prepare, send directly or via postal services to the Telecommunications Bureau a standard service agreement notification dossier.

Telecommunications enterprises that are not leading telecommunications enterprises in the market can independently develop and issue standard service agreements without notifying the Telecommunications Bureau, based on compliance with the regulations in this Decree for application in general with other telecommunications enterprises.

In case a telecommunications enterprise that is not the leading telecommunications enterprise in the market cannot independently reach a Service agreement with a wholesale enterprise, the Telecommunications Bureau will request the enterprise to develop a standard service agreement and send it to the Bureau according to regulations.

Regarding the management of wholesale service prices, the draft stipulates the principles of management and the basis for determining wholesale service prices in compliance with the regulations in Article 57 and Article 58 of the Telecommunications Law No. 24/2023/QH15 and related guiding documents.

Wholesale enterprises for services within the scope of the State-managed telecommunications service market list are responsible for declaring prices in accordance with the regulations on pricing laws.

At the same time, they must implement the method of pricing telecommunications services and the regulations on the management of telecommunications service prices as stipulated by the Minister of the Ministry of Information and Communications.