Vietnam slashes Net charges
HANOI: Vietnam's state-controlled Internet service providers slashed
connection fees this month, but admitted they remained high compared with
other Asian countries and beyond the means of most people.
The four providers, VDC, Netnam, FPT and Saigon Postel, cut charges earlier
this month to rates ranging between 2.06 cents at peak hours and 1.06 cents
overnight, from a flat 2.85 cents a minute, company officials said.
The new rates were determined by Vietnam Post and Telecommunications (VNPT),
which oversees the firms.
They are also cutting initial connection fees to $7.1-$10.6 from $19.22 and
monthly subscription charges to $2.1 from $3.2.
"I think prices are still rather expensive compared with other countries,"
said a marketing executive at Netnam. "Every ISP would like to have lower
prices to get more customers".
Users must also pay a 10 percent value added tax and local average call
charges of about 1.06 cent a minute.
The Netnam executive said Vietnam had about 45,000 Internet subscribers but
an executive at FPT said the number still paid up could be as low as 25,000.
Most subscribers are state organizations and firms.
"Ordinary people don't have enough money to be customers," said the first
executive. "Young people, especially, are very interested in the Internet,
but it's not cheap and most don't have enough money".
Vietnam officially hooked up to the Internet in late 1997, but access to
many Web sites -- such as those operated by anti-communist overseas
Vietnamese groups -- is blocked by 'firewall' software.
On Wednesday, World Bank President James Wolfensohn said it was essential
for Vietnam to fully embrace information technology and it could not become
a serious player in a globalizes world if it continued to censor the
Internet.
He said it was crucial Vietnam and its aid donors gave priority to
information technology and communications in their development plans.
The Netnam executive estimated about 700,000 computers were in use in
Vietnam.
While Vietnam has few Internet subscribers the user numbers have been
steadily increasing, thanks to Internet cafes that have sprung up in Hanoi,
Ho Chi Minh City and some tourist centers.
These cater mainly to foreign tourists but are being used by an increasing
number of young computer-savvy Vietnamese.
Average per capita income in Vietnam is only about $370 per year but levels
in Hanoi and Ho Chi Minh City are much higher. (Reuters)
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