VIETNAM HEEDS SECTION 1377 REVIEW COMMENTS; STILL

UNCLAS HANOI 000058

SIPDIS

STATE FOR EAP/MLS AND EB/CIP
STATE PASS TO USTR DAVID BISBEE AND JONATHAN MCHALE
COMMERCE FOR 4431/MAC/AP/OPB/VLC/HPPHO

SENSITIVE BUT UNCLASSIFIED
SIPDIS

E.O. 12958: N/A
TAGS: ECPS ECON ETRD USTR WTRO VM
SUBJECT: VIETNAM HEEDS SECTION 1377 REVIEW COMMENTS; STILL
CONSIDERING ITS RESPONSE

REF: 06 STATE 202978


1. (SBU) Summary: On January 2, Post provided the Ministry of Posts
and Telematics (MPT) with the Satellite Industry Association (SIA)
and Voice on the Net (VON) Coalition's comments submitted as part of
the Office of the U.S. Trade Representative's (USTR) 2007 1377
Telecom Trade Agreement Review Process. Dr. Phan Tam, Deputy
Director General of MPT's International Cooperation Department,
promised to relay these comments to the Ministry's leadership. MPT
has not yet determined whether it will respond in writing or through
the issuance of new regulations addressing U.S. industry concerns.
Replying to SIA's comments on Vietnam's satellite services sector,
Tam reported MPT will, "try its best to streamline satellite
regulations in Vietnam." The Ministry did not immediately react to
the VON Coalition's expressed disappointment that Vietnam jailed an
"internet innovator" earlier this year. Addressing USTR's request
for information on the rights of a Vietnamese telecom licensee to
access or contract with foreign satellite operators (reftel),Tam
referred to the 2004 Decree 24, which guides implementation of the
Ordinance on Posts and Telecommunications. Post will send an
English version of Decree 24 via the email system. End Summary.


2. (U) On January 2, Post delivered the Satellite Industry
Association (SIA) and the Voice on the Net (VON) Coalition's
comments on Vietnam's compliance with U.S. telecom trade agreements
to MPT's International Cooperation Department Deputy Director
General Dr. Phan Tam. SIA and the VON Coalition submitted these
statements in response to USTR's November 15 Federal Register notice
requesting public comments as part of its review of U.S. trade
partners' compliance with telecommunications trade agreements,
pursuant to Section 1377 of the Omnibus Trade and Competition Act of

1988. Post provided detailed instructions on how the Government of
Vietnam (GVN) can respond by the January 16, 2007 deadline, should
it choose to do so.


3. (SBU) Dr. Tam agreed to report SIA's concerns over the lack of
transparency in Vietnam's satellite services market to MPT's
leadership and said the Ministry will, "try its best to streamline
satellite regulations in Vietnam." In a subsequent telephone
conversation, Tam informed EconOff that MPT is considering whether
to respond to SIA's comments in writing or by issuing further,
detailed regulations. He explained that Vietnam's satellite
services market was only "recently opened to competition," and
conceded that the GVN must work to draft a clearer, more streamlined
set of guidelines governing this sector.


4. (SBU) The Voice on the Net (VON) Coalition expressed its
disappointment that some countries have jailed "internet
innovators," rather than opening competitive Voice over Internet
Protocol (VoIP) markets - citing a November 2006 case in which
Vietnam sentenced a businessman to 16 years in jail for illegally
setting up an Internet-based telephone service. (Note: The VON
Coalition is referring to the November sentencing of South Korean
Businessman Ko Don Chul, who was found guilty of using the Internet
to operate an unauthorized VoIP service which bypassed
government-mandated international telephone charges. The GVN
estimated the damages to be more than USD 1.1 Million. End Note.)
Dr. Tam did not say if MPT will reply to the VON Coalition's
comments.


5. (SBU) Responding to the reftel request for information on a
Vietnamese telecom licensee's rights to access or contract with a
foreign satellite operator, Deputy DG Tam referred to Decree
24/2004/ND-CP, which is the implementing decree for the Ordinance on
Posts and Telematics regarding radio frequencies. According to Dr.
Tam, Chapter V of the Decree, which deals with international
coordination on the use and registration of radio frequencies and
satellite orbits, is the only GVN-issued regulation which addresses
USTR's reftel request. The Decree does not, however, provide clear
guidance beyond the statement that, "Vietnamese as well as foreign
organizations and individuals in Vietnam shall be obliged to comply
with the regulations of the Ministry of Posts and Telematics in
effecting international coordination and registration of radio
frequencies and satellite orbits." (Comment: Dr. Tam said that
there are no further MPT regulations on this issue. The wording of
Decree 24, therefore, indicates that the a Vietnamese telecom
licensee's rights to contract with foreign satellite operators
should be among the issues addressed in future "streamlined" GVN
guidelines regulating the satellite sector. End Comment.)


6. (U) Post will send Washington an English version of Decree 24 for
review via the email system.

MARINE