As one of the five level documents that guide the 2023 Law on Telecommunications, the Ministry of Information and Communications’s (MIC) Circular No 07 controls prices, rents for using cable network within buildings, and fees for leasing passive telecommunications technical infrastructure among telcos, organizations and individuals owning telecom works.

The legal document is expected to take effect on August 16.

Giving detailed instructions on implementing Point b, Clause 1 of Article 67 of the 2023 Telecommunications Law, Circular No 07 is affects telecom carriers, organizations and individuals that own telecommunications works for lease in buildings and that lease passive telecommunications technical infrastructure; state management agencies related to the management of rental of cable networks within buildings and rental of passive telecommunications technical infrastructure; and other relevant agencies, organizations, units and individuals.

Explaining that the circular stipulates the principles for controlling prices and pricing methods, a representative of the Authority of Telecommunications (AOT) said the circular has been compiled based on regulations in the 2023 Law on Telecommunications, 2023 Law on Prices and the practice of dispute settlement.

He said that MIC’s promulgation of Circular 07 aims to clarify the authority of MIC and information and communications departments in cities and provinces in presiding over management and dispute settlement, as well as negotiations for telecom infrastructure leasing fees.

Previously, the authority for price negotiations belonged to local finance departments. However, in reality, finance departments did not organize negotiations, so when disputes among telecom carriers arose, there was no agency to settle the disputes.

With the new regulation, MIC will preside over negotiations about rentals of cable network within buildings and rentals of passive telecom technical infrastructure between lessees and lessors who are both 100 percent state owned enterprises.

Meanwhile, local information and communications departments will preside over negotiations about rentals among organizations and individuals that invest to build cable networks within buildings, and build passive telecom technical infrastructure in localities; and local branches of the enterprises where the state holds 100 percent of charter capital.

Circular 07 sets two methods of determining leasing fees, including the cost-based pricing method and the comparative method.

Organizations and individuals, considering the specific characteristics of cable networks within buildings and passive telecom technical infrastructure, as well as the market situation, have the right to choose a pricing method. 

There are three methods to control leasing fees, including quoting leasing fees, checking the factors that formulate rentals, and negotiating rentals.

Van Anh