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VietNamNews

Telecom providers seek inbound rate increases

Update: January, 14/2014 - 09:31
Viettel handled 1.4 billion minutes of international calls at the end of last year, a 20 per cent decline compared with 2013. — VNS Photo Doan Tung

HA NOI  (VNS) — Vietnamese telecom companies have submitted a proposal to the Ministry of Information and Communications to raise the rate for calls from overseas to Viet Nam from 6.1 cents to 8.1 cents per minute.

According to the proposal, the new rate will ensure the profitability of telecom providers and contribute an additional VND255 billion (US$12 million) in foreign exchange to the state budget every year.

The rate of 6.1 cents per minute, applicable since early 2013, has earned the sector $75 million during the past year.

A report by the Viet Nam Posts and Telecommunications Group (VNPT) showed that inbound calls are among the important operations contributing to profits for the corporation. Viettel handled 1.4 billion minutes of international calls at the end of last year, a 20 per cent decline compared with 2013.

However, the revenue from the service increased 54 per cent to VND1,619 billion ($77 million) from 2012. The increase in revenue occurred because of a price hike from 4.1 cents to 6.1 cents per minute by the ministry's Department of Telecommunications at the beginning of last year.

Viettel has asked the department to increase the rate on international calls to Viet Nam to 8.1 cents per minute from February 1.

Last August, the Prime Minister asked the ministry to improve the management of its services and issued regulations directing enterprises to charge calls originating from overseas at reasonable rates. — VNS


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