VNPT has asked the Ministry of Information and Communications for permission to slash mobile charges of VinaPhone and MobiFone from 10-20 percent under a plan submitted in early 2010.

Vietnam Post and Telecommunications Group (VNPT) has asked the Ministry of Information and Communications’(MoIC) for permission to slash mobile charges of VinaPhone and MobiFone from 10-20 percent under a plan submitted in early 2010.

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As of early 2010, MoIC allowed mobile networks to reduce connection fees from 10-15 percent.

The connection fee is a payment that the three largest mobile networks – Viettel, MobiFone and VinaPhone – must submit to smaller operators when their subscribers make to or receive calls from subscribers of other networks.

The fee has reduced from 700 dong per minute to 550 dong/minute for calls made from Viettel, MobiFone and VinaPhone to other networks and 500 dong/minute for calls made from other networks to Viettel, MobiFone and VinaPhone.

According to telecom service providers, the connection fee is a significant production cost and, once the fee falls, they can save a lot of money. This is a basis for further mobile charge reductions.

In early February, VNPT also asked MoIC’s permission to cut charges for clients of VinaPhone and MobiFone by 20 percent, but this proposal has not been approved yet.

VNPT’s plan is to reduce fees 200 dong per minute for post-paid services at VinaPhone and MobiFone. The average reduction is around 15 percent and 20 percent. If approved, charges for VinaPhone and MobiFone would be around 10 dong/minute lower than Viettel.

PV