Hoang Vinh Bao, Director of the Authority of Broadcasting and ElectronicInformation, explained the Government policy on the management anddevelopment of pay TV channels in Vietnam.

*There are more than30 pay TV service providers operating in a majority of cities andprovinces in Vietnam. Some even have two or three service providers.Does that mean the pay TV industry is growing fast?

The types ofservices that the television market in Vietnam provides to more than 16million subscription accounts can be classified into four: cable,satellite, digital terrestrial and mobile TV. The Ministry ofInformation and Communications (MIC) understands that pay TV is thefuture of the market and so it has made recommendations that theGovernment issues important policies in order to conduct thestep-by-step organisation and management of this industry.

Thesepolicies have resulted in the industry's fast development over the last10 years. Pay TV has become an integrated part of our modern society.

However,it seems that the industry's full potential has yet to be exploited.According to 2013 figures, just six of 22 million families havesubscribed for pay TV. It has prompted the ministry to design andimplement a set of new policies to maintain the industry's growth andstability.

*Has there been unfair competition in the pay TV industry?

Thereare business practices that could result in unfair competition if leftunattended. For example, content monopoly without timely interventionwill give rise to information monopoly.

As a result, at the endof 2013, the Government approved a development plan for the broadcastindustry. The MIC and the Government have issued legal documents andpolicies to maintain a fair and competitive environment in the industryand sustain its development.

*What are the objectives that the Government has set for the pay TV industry?

TheGovernment's first priority for the industry is to make informationeasily accessible to the general public. The industry's developmentplays an important role in the country's drive for a completedigitalisation of information.

Another objective for the industryis to be able to satisfy the public's demand for entertainment andinformation. Through development policies, the Government encourages theimplementation of the latest technologies to sustain the industry'sgrowth and the formation of large domestic and internationalcorporations.

How strong is the possibility that we will see the pay TV industry restructure itself and form large corporations.

Theindustry is guided by free-market principles. The Government will notplay too much of a role in management. Instead, it will design policiesthat will effectively protect businesses against unfair competition andstimulate growth.

The Government's policies are aimed at theformation of capable and sizable corporations with the ability toimplement the latest technologies and cover large territories. In thepast, there were about 60 service providers in the industry. However,due to their small size, they have been merging, and the Governmentencourages that move.

The Government will encourage and supportcorporations that invest and operate in less populated areas of thecountry, especially cable TV service providers.

Policies like theMIC's Decree on Management and Supply of Pay TV that aims to regulateprices are under review as part of the effort to fight monopoly andunfair competition.-VNA