Trương Gia Bình

· 29 Sep 2021

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Information from FPT Telecom People startled because of the cost of repairing sea fiber

Previously, the license fee for repair and maintenance of sea fiber cable is only about VND 50 million per time.However, starting on January 1, 2017, this fee increased spike, falling at about VND 11 billion, 220 times more than the old fee.This fee increased too high and as soon as the publication received many contrary comments from the public.Same FPT Telecom Find out about this problem through the article below!

Specifically, according to Circular 273/2016/TT-BTC dated 14/11/2016 of the Ministry of Finance, from 1/1/2017, the fee for the license to repair the sea cable route is approximately $500,000 (more than 11 billion VND).Thus, just three or more times per year the sea fiber cable has trouble, the total amount of repair will amount to millions of dollars.

That's not to mention maintenance, maintenance, annual permanent fleet rent.If for repairs like this, plus the hard amount to pay each year for other activities, the number is unknown how many times it will multiply.

Mr. Tran Manh Hung, General Director of VNPT said that the above fee was rising too fast and not justified.With the increasing speed of internet connection in Vietnam as now, there will be more and more sea cable routes, so the cost of repair is more expensive.Such a rapid increase in fees will affect the operation of businesses.Therefore, VNPT petitioned the Ministry of Information and Information to have an opinion with the Ministry of Finance to review Circular 273.

Responding to Mr. Tran Manh Hung's petition, Mr. Nguyen Duc Trung - Director of the Department of Telecommunications said that the Department has received the petition of VNPT and currently has a written submission to the Ministry of Finance on this issue.

The document proposes to reduce the license fee for one repair of the sea cable to 1/10 of the current level, i.e. 50,000USD/1 repair.If the proposed reduction of the Department of Telecommunications to 50,000USD/1 repair (to more than 1 billion VND/1 repair), the fee for one repair will be 22 times higher than the previous repair.

It is known that VNPT telecommunications is actively exploiting marine optic cables AAG, SMW-3, APG.Besides, VNPT is also investing in the AAE-1 cable (AAE1-Asia Africa Euro 1) connecting Asian countries to European countries, Africa.This cable is expected to go into operation in 2017.

According to the plan, if nothing changes, by 2020 VNPT will operate all 6 international sea optic cable routes, not stopped there, the company is continuously expanding operations with large partners, placing servers to supply and store content right at the IDC of VNPT.

Viettel is now also putting into use new sea optic cable AAE-1 connecting to countries of Asia - Africa and Europe, along with some other sea optic cables. FPT Telecom Joint Stock Company (FPT Telecom) is not outside the race to scale up this activity.

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