Vietnamese legal regulations on activities of a service provider without network infrastructure

Telecommunications activities encompass a wide range of operations, including investment and business in basic and value-added telecommunications services, the trade of telecommunications goods, the provision of public telecommunications services, the issuance and management of telecommunications licenses, interconnection and infrastructure sharing, management of telecommunications resources, and oversight of technical standards, service quality, and pricing.  

Concerning the subject scope of application, the Law on Telecommunications 2023 governs the activities of telecommunications enterprises.  Within this framework, telecommunications enterprises are defined under Vietnamese law as entities established in accordance with Vietnamese legislation and authorized to conduct telecommunications services. Telecommunications enterprises are classified into two categories: (a) Service providers with network infrastructure, which establish and own public telecommunications networks while providing telecommunications services, and (b) Service providers without network infrastructure, which provide telecommunications services without establishing or owning public telecommunications networks. 

This article focuses primarily on service providers without network infrastructure, a type of enterprise that has become increasingly prevalent in practice. The discussion explores the legal definition, permitted activities, licensing conditions, regulatory authority, and procedural requirements that govern their operation under the Law on Telecommunications 2023. 

1. Definition of a service provider without network infrastructure 

A service provider without network infrastructure refers to an enterprise that provides telecommunications services without establishing or owning a public telecommunications network. 

2. Activities of a service provider without network infrastructure (1) 

  • Build, install and own a system of telecommunications devices and transmission lines within locations of its public service establishments and points to provide telecommunications services for users;
  • Hire transmission lines for connection between its system of telecommunications devices and public service establishments and points and public telecommunications networks of other telecommunications enterprises; 
  • Hire transmission lines or buy telecommunications traffic or services of other telecommunications enterprises for reseal to telecommunications service users;
  • Sublease telecommunications infrastructure to other telecommunications enterprises in case where the telecommunications enterprise leasing such telecommunications infrastructure gives consent;
  • Be provided with telecommunications resources under regulations of this Law on management of telecommunications resources; 
  • Conduct study for development of, and test of new technologies and models in telecommunications activities; 
  • Exercise other rights according to regulations of the Law on Enterprises and other relevant laws. 

3. Conditions for granting a license for provision of telecommuncations services without network infrastructure (2) 

  • A service provider without network infrastructure possesses the Enterprise Registration Certificate and/or the Investment Registration Certificate; 
  • A service provider without network infrastructure  is not undergoing dissolution or bankruptcy procedures under the competent state agency’s decision; 
  • A service provider without network infrastructure shall make a technical plan and a business plan in conformity with the information and communications infrastructure planning and in accordance with regulations of this Law on telecommunications resources, connections, service prices, technical standards, regulations, quality of telecommunications services, safety of telecommunications infrastructure, protection of legitimate rights and interests of telecommunications service users and other regulations of relevant laws. 

Note: A license for telecommuncations services without network infrastructure valid for no more than 10 years.(3)

4. Competent authority (4)

Ministry of Information and Communications. 

5. Other requirements and procedures, including the registration and notification for the provision of telecommunications services 

  • Registration for the provision of telecommunications services requires enterprises to declare information about the enterprise, the type of telecommunications service provided, and the compliance with the conditions for providing telecommunications services as stipulated by the Government;
  • Notification for the provision of telecommunications services involves enterprises declaring information about the enterprise, the type of telecommunications service provided, and information related to the quality of the services provided by the enterprise;
  • The Government stipulates in detail the list of telecommunications services subject to the registration and notification procedures for the provision of telecommunications services, the conditions for providing telecommunications services under the registration procedure, and the procedures for registration and notification for the provision of telecommunications services. 

 

The regulatory framework governing service providers without network infrastructure under the Law on Telecommunications 2023 establishes clear definitions, permitted activities, licensing conditions, and procedural requirements. This framework enables these enterprises to operate within a structured and transparent legal environment while fostering innovation and efficiency in the telecommunications sector. By addressing licensing prerequisites, operational parameters, and oversight mechanisms, the Law on Telecommnucations 2023 ensures that service providers without network infrastructure can contribute to the development of Vietnam’s telecommunications landscape while safeguarding the interests of users and maintaining compliance with national policies and international standards. 

(1) Article 13 of the Law on Telecommunications 2023. 

(2) Article 36.3 of the Law on Telecommunications 2023. 

(3) Article 33.2.b of the Law on Telecommunications 2023. 

(4) Article 33.4 of the Law on Law on Telecommunications 2023. 

See more:

1/ Legal framework for open API data sharing system development in the banking sector

2/ Entrusting metro and expressway projects to the private sector: a leverage for Vietnam to master infrastructure technology and step out into the world

3/ Legal framework for the operation of e-commerce platforms


Disclaimers:

This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.

For issues related to the content or intellectual property rights of the article, please email cs@apolatlegal.vn.

Apolat Legal is a law firm in Vietnam with experience and capacity to provide consulting services related to Business and Investment and contact our team of lawyers in Vietnam via email info@apolatlegal.com.

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