VZCZCXRO5132
RR RUEHHM
DE RUEHHI #0058 0110606
ZNR UUUUU ZZH
R 110606Z JAN 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 4301
INFO RUEHHM/AMCONSUL HO CHI MINH 2362
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

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