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MobiFone accused of violating Law on Competition
18/Jun/2009 Intellasia | VnExpress
18 Jun, 2009 - 1:33:40 PM
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Viettel Telecom has accused MobiFone of violating the Law on Competition as launching the advertisement board of comparing service charges between two telecom networks. Also, MobiFone attracted Viettel's customers via service trial programmes.

In the urgent official letter sent to Competition Management Department and the inspectors of Ministry of Information and Communication yesterday, Viettel Telecom stressed, in the recent time, advertising posters introducing the new service charge of VMS MobileFone appeared in some provinces such as Dong Thap, Soc Trang, Hau Giang, Can Tho, An Giang, Ca Mau, Kien Giang and Vinh Long. The posters compare directly service charge of MobiFone with that of Viettel Telecom.

Citing the advertisement, "Comparing MobieFone's new service charge applied from June 1 with Viettel Telecom's from June 1, the charge of MobieFone is lower 10 dong per minute for all services. Particularly monthly subscriber cost, the charge of MobiFone is lower 1,000 dong per minute. As for post-paid subscribers, Viettel Mobile applies the monthly charge of 50,000 dong, charge for internal calls 900 dong per minute and external calls at 1,090 dong per minute. Meanwhile, MobiFone applies 49,000 dong, 980 dong and 1,080 dong per minute. After the reduction phase, the mobile service charge of MobiFone was lower than Viettel Telecom."

Viettel said, the above citing violated Ordinance on Advertising that took effect from 2001 because MobiFone compared directly its service charge with other companies'. Under Clause 109 Law on Trade 2005 and Clause 5 Ordinance on Advertising, MobiFone was accused of abusing advertisement to damage the lawful rights and interests of other individuals and institutions, particularly Viettel Telecom.

In addition, according to Clause 45 Law on Competition 2004, the aforementioned behaviour is unhealthy competition.

Furthermore, in Hai Duong province, MobiFone launched a mobile sales programme in communes and villages with the slogan "Change simcards of other networks to take MobiFone simcard with available 230,000 dong in account" allowing customers who are using other mobile service providers (including Viettel Telecom) and having account balance of below 15,000 dong and valid usage date to change a MobiZone simcard of MobiFone free of charge with available 50,000 dong in account. In following 12 months, MobiFone commits to present 15,000 dong each month to the new customers.

Pursuant to Section 4 Clause 46 Law on Competition, as for promotion activities, the law bans promotion programmes for "unhealthy competition".

Talking with VnExpress, Dinh Viet Hung-head of MobiFone's advertising and marketing division confirmed that the firm did not launch any advertisement of comparing directly service charge between MobiFone and Viettel Telecom. Thus MobiFone will carry out checks over the entire system (agents, branches and shops) to find out reason.

The case is under investigation.





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