1 The urgent of the dissertation In the world, the field of the television development was separated by two kind INTRODUCTION Research purpose Basing on the theoretical and practice premise of state management of paid television in Viet Nam, the dissertation put forward major solutions to complete state television: free-to-air television and paid television Free-to-air television played a role in providing information, news, laws and basic entertainment for audience free Operations of free-to-air television relies on national budget Viewers must ‘accept’ the uniformity of television channels due to the limitations of content and quality In the condition of market economy, viewers’ needs and budget are increasing management of paid television To achieve the purpose, the dissertation defined these following research tasks: Firstly, building a theoretical framework for research and managing paid television by the state Defining criteria to evaluate paid television by affecting factors Secondly, analysing the reality of Vietnamese state management of paid resulting television programs are required to be higher-quality and specialized in terms of content and image television in the period of 2010 – 2015; building the comprehensive and detail picturesque of paid television service in Viet Nam, figuring out the essence of state Paid television service (called paid television) appeared in 1948 in the world which has appeared in Viet Nam for 20 years In the context of market economy of Viet Nam, paid television is absolutely a new market However, Viet Nam television field has been developed rapidly Viet Nam paid television market has been potential in the early stage which was forecasted to rise fiercely when it has the participation of new enterprises such as Viettel or FPT According to Viet Nam Competition Authority, Ministry of Industry and Trade, paid television market developed at the average rate of 7.3 percent annually over the past ten years which showed highly potential There were 5.6 million paid television subscribers in 20 subscribers in Viet Nam market accounting 30% compared to 60 – 80 percent in the world The number of households who has not used paid television are great until now but the paid television market is facing big challenges Companies not only produce management of paid television market, clearing out the achievable results and limitations of Viet Nam paid television market Thirdly, proposing and recommending scientific solutions to enhance effectiveness and efficiency of state management of paid television in the period of 2015 – 2025 good content, good cable but also compete with over-the-top television Besides, paid television companies have to accept virtual subscribers (who are not equipped to - How many subjects of state management of paid televsion? What are they? receive paid television signal) In addition, they have to see the unfair competition with no control of the Government To manage paid television, Prime Minister signed the decree numbering 20/2011/QĐ-TTg on promulgating mechanism to manage the paid television market on March 24th 2011 and 18a/2013/QĐ-TTg on adjusting decree 20/2011/QĐ-TTg which accompanied with decree 20/2011/QĐ-TTg on March 29th 2014 Owing to the importance of state management in the field of paid television, there were many legislation document for state government bodies aiming at improving the quality of television channel and services These are reasons for the PhD candidate to choose the titlte “State management of paid television in Viet Nam” to the research object of dissertation - How many factors affecting state management of paid television market? Research questions To conduct research purposes, the dissertation is keen on answering these following questions: - What is paid television service? What is characteristics of paid television? How many kinds of paid telvision? - What is state management of paid television? What is the purpose of state management of paid television? - What are principles of state management of paid television? - What are the criteria of evaluating state managemetn of paid television? - What are government management’s bodies in controlling paid television? What are their functions and responsibilities? - What are contexts and situations of state management of paid television in Viet Nam? What are strengths, weakness? Why? - What is the opinion and direction in improving state management of paid television in Viet Nam? - What are the solutions and recommendations for improving state management of paid television in Viet Nam? Research subjects, objects and scope of research - Research subject: the dissertation focus on state management of paid television in Viet Nam - Scope of research: In terms of content: the dissertation focus on the five major responsibilities of state management of paid television including: (1)Management of delivering paid television services (2)Management of content of paid television (3)Management of service quality of paid television (4)Management of infrastructure for delivering paid television (5)Management of paid television price In terms of space: the dissertation researched in Viet Nam focused on Ha Noi, Ho Chi Minh City, Hai Phong, Da Nang geographically In terms of time: the dissertation evaluate state management of paid television in the period of 2010 – 2014 under the direction, opinion and building solutions to 2020 Contributions of the dissertation The dissertation systemized to make clear the theory framework on researching state management of paid television basing on reviewing foreign and domestic previous studies, in particular: - Specified content associated with paid television services including definition, characteristic, classification to make clear other issues relating to paid television - Specified 05 tasks of state management of paid television - Specified systematic criteria to evaluate effectiveness and efficiency of state management of paid television which laid the scientific background for evaluating the current conditions of paid television - The dissertation analysed the reality of paid television’s state management in Viet Nam over the past years The dissertation has enhanced the strengths, weakness and reasons of these weakness Dissertation structure Chapter 1: Review of previous and related studies of the dissertation Chapter 2: Theoretical framework of state management of paid television Chapter 3: The reality of state management of paid television in Viet Nam Chapter 4: Solutions for completing state management of paid television in Viet Nam Chapter I REVIEW PREVIOUS STUDIES RELATING TO THE DISSERTATION The economic, political, society landscape is currently a multi-colour picture On one hand the economic downturn is spreading, on the other hand many new nations are potential Many economies have been unstable with conflicts resulting the world is stressful Vietnamese paid television has developed with many levels Paid television appeared in Viet Nam in 1993 with the advent of cable television services MMDS The field of paid television has had flourishing achievements After working in one of the biggest giant of cable television VTVCab, the author determined the topic of state management of paid television in Viet Nam wishing to suggest feasible solutions and proposals for Viet Nam market Under the dissertation tittle, the author chose problems of supply demand relationship of paid television, price, state management 1.1 Foreign Related studies (1) Casbaa – Associations of Asian Pacific Paid Television, Vietnam’s Pay-TV Situation “Vastly Improved”, (2) Bengt Jonsson, “Tackling the future 2014 trends in the pay television industry in Asia Pacific” (3) Paul Ausick, “Streaming Video Will Continue to Pressure Pay TV in 2016” (4) Marcia Breen, “Cable and Satellite TV Costs Will Climb Again in 2016” (5) Phillip Swan, “2016 Prediction: Cable TV Biz to Rebound” 1.2 Domestic studies (1) Among Vietnamese researchers who always have studies, journals on the topic of paid television or cable television, Dr Hoang Ngoc Huan at Viet Nam National Television (VTV) is the most cited author Dr Hoang Ngoc Huan’s dissertation titled “Some solutions on developing paid television market” which was approved and appreciated by the board of assessment as the most robust and sophisticated work in content, method and statistics (2) Dr Dinh Thi Xuan Hoa’s dissertation titled “The problem of socializing paid television program in Viet Nam” (3) Dr Phan Thi Loan’s dissertation titled “Improving method of economic method of the field of television in the context of transforming market economy in Viet Nam” presented in National Economics University in 1996 (4) Project of Building price of Paid television numbered 28/2014/ĐA-THTT on 2014, November 4th of Association of Viet Nam paid television accomplish state management of paid television and nominating solutions for these 1.3 Conclusions of reviewing related studies 1.3.1 Some agreements These previous studies have mentioned major issues of state management of paid television on many aspects or levels Generally, these studies concluded some statements Firstly, reaffirming the mainstream of paid television and the objective of state management towards the field of television and the paid television market activities in the meantime In the disseratation, the author mined, analysed above contents to find particularly Secondly, specifying the main issues of state management including program content, program quality, price, infrastructure Thirdly, defining the main competitive motivators of the paid television market to guide, control and take advantage of competition whilst curbing the other side of the tracks Fourthly, agreeing on the changing of policies, mechanism, management methods toward paid television market, ensuring the flexibility and suitability with the global integration of Viet Nam However, previous authors did not describe characteristics of paid television services which could not propose solutions and implications for state management officers Some of these issues were just suggestive Other issues were identified and analysed basing on the literature review suggestions for state management toward paid television services in the socialism oriented market economy CHAPTER THEORETICAL BACKGROUND ON STATE MANAGEMENT OF PAID TELEVISION 2.1 Paid television activities 2.1.1 Paid television activities Paid television activities are tranfering, delivering content in the form of television programs and value added services on the technological infrastructure of cable station companies to subscribers following bilateral relationship contracts Television programs are foreign or domestic television programs which is delivered to the subscribers Television programs could be delivered directly to the subscriber or on their demands 1.3.2 Issues related to the dissertation topic After these above results, the dissertation found some following problems of 2.1.2 Paid television characteristics Actors of paid television activities Paid television actors are enterprises/companies which deliver paid television services, they are licenced to provide paid television services, use infrastructure of it own or hire partners’ infrastructure of providers to transfer television program content, television channels of content providers directly or on demand to subscribers state management toward paid television activities: Firstly, characteristics, theoretical and practice background of state management In Viet Nam, companies have to meet the demand of the Government including (i) legislation business registration (ii) permit of paid television service delivering of paid television should be detailed in terms of definition, purpose, principles, assessment criteria, content and affecting factors State management of paid television has to fully ensured with management of delivering paid television services; management of content on paid television; management of paid television quality, management of paid television infrastructure; management of price and cost of paid television service Secondly, examining and assessing matters fact of paid television’s state management in Viet Nam in the period of 2010 – 2015 and guide plan to develop until 2020 Thirdly, unblocking strengths and weakness and causes which orientated to (iii) permit of transferring television content on the cable station approved by Ministry of Information and Telecommunication (iv) permit of establishing telecommunication infrastructure Products of paid television Television programs are products of paid television market that companies deliver with these following features News Sound and Image of television program Persuasion to audience Influence on public opinion Paid television is a kind of viewing with fee providers and subscribers, there are third party is technology infrastructure provider Paid television requires high technology with high quality Television programs are grouped in package and theme (Internet service provider, telecommunication provider…), they not take part in the transaction but ensure the success of transactions System of paid television has high openness considered in the light of foreign product Thirdly, purpose of state management of paid television is developing paid television stably accompanying with ensuring the fair competion in the market to take advantage of social resources which contribute the political responsibilities and meet the people demand of wholesome entertainment Fourthly, technology environment in paid television is always changing swiftly, Customers of paid television End-users/customers Delivery intermediaries Subscribers who use added value in paid television infrastructure 2.1.3 Classifications of paid television Paid television is classified by transferring methods including: Cable television is a kind of paid television service which use cable technology infrastructure of many technologies (Analog, Digital, IPTV) to deliver content to subscribers directly Analog television is original television technology which is called analogue television Analog means the similarity of signals which is transferred from the station to the television set Advantage of Analog television is clear image, good sound Audience could have many high quality television programs Digital Terrestrial television is a kind of paid television using digital terrestrial broadcasting technology (DVB-T) to deliver signals on paid television to subscribers directly Direct to home (DTH) television is a kind of paid television using satellite broadcasting infrastructure to directly transfer content to subscribers Mobile television is a kind of paid television using digital terrestrial or telecommunication network to deliver content to subscribers 2.2 State management of paid television 2.2.1 Definition of state management of paid television State management of paid television is the process of using management tools of the Government/State to control paid television activities of telecommunication companies to achieve the purpose of developing television in general, paid television in particular State management of paid television has some features: Firstly, management subject: due to characteristic of paid television, it need to be ensured by the technology infrastructure (Internet and Information technology) Secondly, management object: paid television is the mainstream In addition to actors joining the traditional transaction relationships including paid television paid television business market is variety, sophisticated and newest high-tech applied 2.2.2 The inevitability of state management towards paid television Vietnam television was established in 1970 which was considered the youngest industry Television is a kind of journalism in general but it has many specialized characteristics News is the common feature of journalism 2.2.3 Purposes of state management toward paid television State management towards paid television start with defining purposes which is the first base of management process Firstly, state management toward paid television makes certain of executing the undertakings, policies and guidance of Government and Communist Party of Vietnam on broadcasting Secondly, state management towards paid television aim at protecting the fair competition of the market, figuring out and avoiding unfair behaviours, companies which harm the effectiveness of the market Thirdly, state management towards paid television protect legal right, benefit of joining parties who provides and use paid television services 2.2.4 Principles of state management towards paid television The necessariy of state management toward paid television not only orignitated from the demand of developing paid television services but the demand of protecting effectiveness of politics, economics and national security on over the country Principles of democratic centralism Principles of fair Principles of economic and effectiveness Principles of legislation 2.2.5 State management toward paid television features 2.2.5.1 Managing delivering paid television services Paid television services are provided on using suitable technological broadcasting to the support of enterprises, people, the participation of other social politic unions in users/customers In that viewpoint, on the perspective of information content, the basic management principles are answering which television channels are permitted, infrastructure to transfer television program’s content the management process Effectiveness of state management towards paid television is examined by the which broadcasting methods could ensure service quality and the responsibilities of service providers Firstly, legislation and legal document Secondly, planning and strategy of industry Thirdly, policies and economic tools system results of state management activities compared with proposed objectives The dissertation built a set of criteria in details: a) Effectiveness 1: results of state management of paid television a The number of companies which was permitted to provide paid television service 2.2.5.2 Content management of paid television Managing content on paid television help to ensure that television channel will b Capability of telecommunication companies in providing paid television services deliver information of policies, undertakings, legislation of the Government to people This management also control the edition, interpretation of foreign television channel on paid television system The proportion and content structure are suitably managed on the paid television system periodically Vietnam television channels transferred on paid television include free to air television channels (according to the law on journalism) and television channels permitted by the Government 2.2.5.3 Managing quality of paid television services Paid television quality has strongly impact on customers’ beneficiaries To protect customers’ rights, specialized equipment which established the system of providing services from the station to end users is managed under standards of technical criteria Publicizing service quality help customers not only examine providers’ commitments but be aware of their own rights in using services 2.2.5.4 Managing infrastructure of paid television service providing c Contribution of companies to national budget b) Effectiveness 2: Achievements of telecommunication companies in paid television activities c) Effectiveness 3: The degree of law compliance towards paid television by telecommunication companies a The convenient of business registration b The number of companies which break the laws c The field of violation 2.2.6.2 The efficiency of state management The efficiency reflects productivity, proficiency of budget spending Efficiency of state management is assessed by maximum operations with minimum resources (human, materials); outcome social economic achievements compared with input resources The dissertation has built up a set of criteria in details Developing synchronous modern unified transferring infrastructure in terms of technical criteria ensures to deliver broadcast and telecommunication services and a) Efficiency 1: The satisfaction of telecommunication companies with state management meet the demand of converging technology and services Enhancing the changing of broadcasting infrastructure from analog technology to digital technology to improving service quality, increasing channels, varying services to intensify digital resources a Satisfaction of telecommunication companies with state policies on supporting infrastructure for providing paid television 2.2.6 Evaluating state management of paid television activities 2.2.6.1 Effectiveness of state management Effectiveness of state management expressed by the power, productivity of state manage apparatus towards paid television activities Expressions are performance of policies, treatment and behaviour towards affairs, compliance with laws, and the coordination between state agencies Effectiveness show the power of the state and b Satisfaction of telecommunication companies with state policies on price, cost management c Satisfaction of telecommunication companies with state policies on market control b) Efficiency 2: Satisfaction of end users (household, individuals) with paid television services c) Efficiency 3: The sustainability of paid television market a The degree of completing management objectives on paid television services 10 b The degree of business risk faced by telecommunication companies when b) Capabilities of state agencies officials joining the paid television market c The influence of paid television on people life State agencies officials in paid television management have responsibilities of proposing policies, orientation for the development of paid television market which 2.2.7 Factors affecting state management on paid television activities 2.2.7.1 Macro factors a) State policies and legislation There are many factors affecting state management towards paid television First and foremost is the relationship between actors in the market (especially the require the professional and vision to put forward the market orientation 2.2.7.3 Telecommunication company factors a) Organization and management abilities of companies Organization and management abilities of telecommunication companies play an important role in the surviving, competitive advantages and developing Besides, Government and telecommunication companies) and the encouraging mechanism In the competition mechanism, the theory base advised to choose agreement on these factors determine the quality of paid television services They are one of the most important elements need to be considered when permitting for paid television providing paid television services aiming at boosting up the efficiency, fair and responsibility of each provider b) The reality of Vietnam social economic development Vietnamese revolution has reached many achievements In addition to maintaining the high increase of economic development, Viet Nam has been one of the most successful nation in alleviation, poverty reduction and national social security c) Technology development In the globalization and global integration period, applying technology advances and technology transformation has been increasingly passing off The development of one nation is not only basing on natural resources or human labour but on science technology knowledge which is able to renew, an important input of business manufacturing system and determine the competitive advantage and the speed of delivering b) Sense of law compliance Sense of law compliance is organization’s level of knowledge on legislation in business activities It is the active execution of legal policies by companies c) The competition between telecommunication companies Competition is natural phenomenon; it is the conflict relationship between individuals which resides in the same environment and has common concern In the area of economic, competition is the contest of rivalry between economic objects (manufacturer, consumer) to achieve better position in manufacturing, consuming or using to gain the most benefit Lessons on state management towards paid television in Viet Nam Firstly, the state should encourage companies in the industry to coordinate and support each other It helps state management in the broadcasting and paid television development… d) Global economic integration in particular in the consistent guidance of Law and the Government Secondly, policies on paid television have to motivate telecommunication companies Under the context of global interdependence, one country operations have influence on neighbouring countries and the rest of the world The growing realization that some essential goods or services could be ensured by the global coordination Moreover, in the global perspective the changing globalization on services and information technology require the examination of management of public services and the relationship between levels of state agencies and people 2.2.7.2 State agencies factors a) State management apparatus of paid television State management apparatus include two aspects: system of state management apparatus towards paid television and the coordination mechanism of these agencies develop high technology aiming at delivering television channel, serving the propaganda of Vietnamese Party and the Government and meeting customers’ demands Thirdly, the state should clearly regulate the responsibility of paid television service providers in publicizing service quality under the law and reparing any incidents to warrant the service quality Fourthly, on the customer’s side, the state should regulate on the customer’s complain on the price, service quality and compensation in the case of paid television services are not provided in the signed contract between customers and the services provider except for the impossible conditions 11 12 CHAPTER III RESEARCH METHODOLOGY 3.1 Research framework Factors affecting on state management of paid television Content of state management of paid television Purpose of state management of paid television Management of delivering services Ensuring the operations of paid television under legislation and state policies of state management of paid television Chapter Macro economics factors Management of content of paid television State bodies factors Management of service quality of PT Ensuring the fair competition in the paid television Management of infrastructure of PT Tele-com company factors 3.4 Data treatment Secondary data was used directly or indirectly to compare and evaluate Primary data was coded and analysed by software (SPSS 22) under the content Ensuring the rights and benefits of joined parties in the paid television market Management of paid television price 3.2 Research process Step 1: Secondary research to define and build up framework of state management of paid television Step 2: Collect facts, figures, document, reports to analyse the context of state management of paid television in the period of 2011 – 2014 Step 3: Basing on analysing in step 2, propose directions, solutions to complete state management activities toward paid television marketing in Viet Nam until 2020 3.3 Methods of collecting secondary data 3.3.1 Secondary data Survey Desktop research Statistical treatment – comparison Analyse – summary In addition to these above methods, the dissertation used theory on market, analysed report of the field 3.3.2 For the secondary data THE REALITY OF STATE MANAGEMENT TOWARDS PAID TELEVISION IN VIET NAM 4.1 Overview on paid television in Viet Nam 4.1.1 The advent and development of paid television in Viet Nam Viet Nam has transformed from the central planning economic to multi-agent economic since 1986 The transformation helped the nation overcome stagnations and developed in the socialism orientation In the context of developing market, many kinds of supply-demand services have appeared with no exception of television Paid television which has developed strongly appeared in 1945 in the world Under the war-torn period, Viet Nam paid television has developed since 1993 with the beginning of MMDS Fifteen years ago, there has been several MMDS cable service providers nationwide, the biggest providers were Saigontourist in Ho Chi Minh city and MMDS technology of cable television (VTV) in Hanoi Since 2001, paid television has developed with the popularity of cable television Until 2013, Viet Nam has had 30 cable television service providers nationwide Cable television service has appeared in almost province and city in Viet Nam even two or three providers in one province Cable television companies provided services in crowded area or high populated density which brought high economic performance resulting most of subscribers were located in big cities with the highest density in Ho Chi Minh City and Hanoi and neighbouring cities Vietnam’s population is 90 million people with more than 20 million television subscribers, the market penetration accounted for 25% of the population compared to the average market penetration of 31.8% of countries in the region Until 2015, Vietnam has had million paid television subscribers per 22 million of households which showed the potential of market but challenges to governmental agencies to generate mechanism for the fast and sustainable pace for paid television market in Vietnam 4.1.2 The reality of paid television in Vietnam Vietnam economic has eye-witnessed the impressive increase of paid television Interview experts In-depth interview Social survey services recent years with the enlargement of cable television, DTB-T, satellite 13 14 television, mobile television Sales figures of typical paid television service providers in the period of 2011-2015 Currently, paid television has covered 63 provinces and cities of Vietnam with the strong development Paid television has better served and more choices for people Providers has invested in improved services, technology to serve the people Some of dominant providers Providers Saigontourist Ho Chi Minh radio and television station Vietnam center of cale television Digital satelite televison Company Ltd, Vietnam Vietnam Multimedia communication VNPT Viettel Hanoi cable televison joinstock company Global audition company Capital Beginning Service (million year brandname VND) 470.500 1992 SCTV 500.000 2003 HTVC 440.000 1999 VTVcab 420.000 2009 K+ 1.500.000 2000 VTC 72.237.000 2006 MyTV 100.000.000 2013 NextTV 98.000 2005 HCATV 1.800.000 2011 An Viên Unit Saigontourist Revenue 2011 2012 2013 2014 2015 1.689 1.989 2.384 3.142 3.600 HTVC 230 300 150 120 150 VTVCab 600 750 892 1.200 2.500 K+ VTC 120 160 190 320 550 5.450 5.177 3.800 3.200 3000 VNPT 120.000 130.390 119.000 101.055 Viettel 117.000 141.400 164.000 197.000 205.000 99.000 HACTV 80 95 98 90 80 An Vien 15 50 65 90 110 4.2 Organization of state management towards paid television in Viet Nam Vietnam Government Statistics of subscribers, television channels TT 1.1 1.2 1.3 3.1 3.2 3.3 4.1 4.2 4.3 4.4 Phân loại 2011 2012 2013 2014 2015 Paid television subscribers 5.000.000 6.025.000 6.679.646 7.120.000 7.300.120 Cable television subscribers 2.500.000 4.412.000 5.572.772 6.010.018 6.200.150 DVBT subscribers 2.000.000 640.000 120.000 105.000 110.000 Satelite television subscribers 500.000 973.000 986.874 1.004.982 989.970 Number of paid television 67 73 74 74 74 station Number of paid television 55 35 39 36 37 providers The number of cable television 47 27 33 30 30 provider The number of DVBT providers 5 3 The number of satelite 3 3 television providers The number of paid television 236 252 228 232 234 channel The number of free-to-air 93 99 104 107 106 television channel The number of free-to-air radio 70 73 75 76 75 channel The number of paid television 68 75 40 45 48 channel The number of radio channel on 5 11 10 paid television 15 Ministry of Information and Telecommunication Authorization of Broadcasting and electronic information Local department of Information and Telecommunication 4.2.1.Legislation base of state management towards paid television in Viet Nam Television in general and paid television in particular is a special kind of journalism which is controlled and guided by the State; individuals are not permitted to own journalism Television and journalism in Viet Nam has been regulated by Journalism Law promulgated in 1989 and Journalism Law Adjustment numbered 12/1999/QH10 promulgated on June 12, 1999 Adjustment Law on Journalism emphasized that only social political organizations, organization of the State could operate in the field of journalism However, these organizations could cooperate with individuals, foreign organizations to implement, execute journalism products including newspaper, radio, television and internet news Activities in developing paid television market are under the Law of Journalism 16 c) Assessing the permission for providing paid television 4.2 The reality of state management towards paid television in Vietnam Under the legislation, to make sure that television services and paid television services run smoothly and meet the demand information of people, the State has to build the legislation framework of state management towards paid television under the legal authority of management entities periodically The legislation content has to be defined and targeted at executing the policies and procedure of the State and the Party on paid television on one side and fighting plots and quackeries of manipulating freedom of speech by enemies 4.2.1 The reality of paid television delivering The reality of development planning for paid television market a) Development objectives In terms of content: Viet Nam thrive to provide 70 – 80 television channel serving politics tasks, transfer essential national information, region, locals on the broadcasting system geographically depending on technology abilities Besides, delivering 40 to 50 specialized television program for paid television and on-demand television Ensuring the suitable proportion and structure of foreign channel in the system of paid television periodically In terms of service providing: maintaining free-to-air radio, television service (analog and DVBT) and gradually changing to digital technology under the project promulgated by the Prime Minister Until 2020, Viet Nam will have 60-70% the number of household using paid television b) Development orientation Developing radio, television services basing on prioritizing political tasks of the State, propaganda, transferring official information timely and exactly to the people combining with providing abundant content of entertainment and information on paid television Support for developing free-to-air radio, television services and essence radio, television channel accompanying with establishing radio, television and paid services market with fair completion in the mechanism of the market, developing sustainably with modern technology oriented to change to digital radio, television in 2020 Varied content with well-density of national identity, high quality and reasonable price Developing harmony and suitably all kinds of radio, television in the principle of neutral technology Encouraging the applying of advanced technology fitting with the promulgated technology standard and the global trend to enlarge the provision size, enhancing quality reducing price for people in the mountainous, islands, borders area 17 Criteria The clearance level of information The clearacne level of administration procedure Abilities of manager The fairness in permission No (Mean) Standard Rate deviation 19 2,95 0,705 Medium 19 2,21 0,535 Not good 19 19 3,16 2,79 0,765 0,631 Medium Medium 4.2.2 The reality of content management on paid television Paid television service packages include: (i) Basic: low price free-to-air channels for political missions, essential publicity information (ii) Advance varied price depend on people demand Packages have to meet the demand of exact, straightforward, education and beauty of information Besides, paid television has to comply the regulation on interpreting: Movie channel: interpreting 100% content News channel: translate 100% content Science, education channel: interpreting 100% news program General, entertainment channel: interpreting 100% of news, documentary program Examining paid television quality Planned examination Unplanned examination Publicizing the television service quality Once time months, Authority of broadcasting and electronic information publicize information on service quality of paid television on website of Ministry of Information and Technology and Authority of Broadcasting and electronic information Permitted companies publicize information of their service quality on company’s website Publicized information includes The situation of publicizing paid television service quality and criteria of service quality that company published The situation of complying the procedure of report and standard criteria of company Results and examination of paid television quality of state management agencies Evaluating paid television service quality 18 To evaluate the paid television service quality, the dissertation use secondary data from servey of telecommunication companies Evaluation of paid television quality management of telecommunication companies Criteria No (Mean) Standard Rate deviation The suitability of regulations 19 3,68 0,671 Good The sutiablility of examining 19 television program quality 3,21 0,713 Medium The suitablilty of treating with breaking law on 19 television program quality 2,95 0,621 Medium There are four companies of providing paid television technology infrastructure for other companies Technology infrastructure provider in Viet Nam Name VTVCab VNPT Viettel Partner Saigontourist VSTV An Vien 23 joint venture organization in 64 provinces (using permission HaCTV of local television station) 4.2.3 The reality of cost, price, rates management of paid television Early 2014, there was a trend of reducing equipment, price between paid television providers In the satellite television, VTC, K+ and An Vien had the race of reducing price VTC reduced the price for HD equipment to 1.99 million of VND and the price for SD equipment to 990 thousand VND in 2013 VTC informed the price for lowest subscription of SD 720 thousand VND/12 months and HD 1.200 thousand VND/12 months (equivalent to 60 thousand VND/month and 100 thousand VND/month, respectively) VTC HD had provided 60 free-to-air domestic channel which customers did not to pay CHAPTER SOLUTIONS FOR COMPLETING STATE MANAGEMENT OF PAID TELEVISION 5.1 Estimating the potential of paid television development in Viet Nam to 2020 Viet Nam has been changing to the market economy and totally global integration in all fields, paid television market is one of these areas Paid television has to self-develop popular of cable television technology Cable television has the highest market share DVBT has the highest subscribers which share the market with other technology One fact which is a challenge and opportunity for the task of managing paid television in Viet Nam currently is that paid television develops in increasing demand in varied aspect of customers and reach the satisfaction on quality and technology However, providers have showed some obstacles and disparity on capabilities in capabilities which cause the fierce competition in the market Authority of Quality forecasted that paid television in Viet Nam would develop more vigorously in the future with the average increase of 20 to 25% annually Besides, country market will not be covered which brings big opportunities for new providers in the market The synergy between television-telecommunication-internet services will set the special power for new providers with bigger market, more businesses and more challenges 5.2 Opinions and orientation of completing state management of paid television in Viet Nam With the development in recent years of paid television service and development of technology in transferring, broadcasting, Viet Nam has many service of radio, television such as: broadcasting services, DVBT, Internet IPTV… New method of broadcasting has not been judged by Law In the future, opinions of state management of paid television in Viet Nam are: Firstly, paid television should be aware of a typical kind of service in the market which is controlled by the State Paid television is the supply-demand relationship as other goods or services but its characteristics are operated to meet the demand of television seeing like other political tasks of the State Secondly, paid television market management, maintain the fair competition to take advantage of social resources in executing political tasks, publicity, information and meeting the varied demand of beneficial entertainment of people Thirdly, strictly management of content providing and information service quality under the legislation of Law on journalism, infrastructure management, broadcast service management Fourthly, encouraging Association of Paid television operations to enhancing paid television service market under the State and Party undertakings, policies and laws and self-complete with the technology of: DVBT, IPTV, satellite, cable with the most 5.2.1 Directions for completing state management of paid television in Viet Nam Firstly, completing legislation framework on broadcasting service step by step to create the synchronization in legislation system and establish the mechanism of 19 20 content management under the Law on Journalism, technology infrastructure under only increasing providers but enlarging size, sphere of impact and enhancing the the specialized law fitting with the trend of paid television market Secondly, building legal documents on the price of paid television suitable with information quality as well as content serving for customers Enlarging paid television market size is essential The development of society, the increase of geographic area and quality of content Using national budget, company budget, individual money economically and effectively Regulating principles applying towards organizations, individual participating in broadcasting services; permitted content providers, permitted service providers, essential conditions in providing services, standards of service quality, rights and responsibilities of concerning parties knowledge and education cause the increase of communications The Society itself requires to enlarge size of paid television service provider as well as enhancing quality of content on television such as news, programs, reports However, enlarging market size should be fitted with strategy, plan of developing broadcasting in legal documents avoiding overlapping of functions and responsibilities in broadcasting services under the Law on journalism, Telecommunication and related legislation documents 5.3.2.1.2 Solutions of completing content management on paid television Viet Nam has used many basic transferring methods for paid television 5.3 Solutions on completing state management of paid television in Viet Nam 5.3.1 Group solutions on educating, nurturing state management knowledge on paid television for state agencies’ officers Party and State indicate that information telecommunication is a flag economic sector which is prioritized, encouraged, supported by the State in a form of developing information industry, enhancing the establishing and developing including: cable (analog, digital and IPTV), DVBT, DTH and mobile television Compared with other services, business in paid television services become one of fastest growth industry Ho Chi Minh City is a fastest increase market with more than million subscribers The capital city of Hanoi ranks second with 120 million subscribers, Da Nang city has 80 thousand subscribers and Hai Phong city has 70 thousand subscribers Especially, one of the newest technology is IPTV television which four companies are in the trial implementation including VNPT, Viettel, VTC and FPT Accompanied with free-to-air television, paid television system contribute in creating one more method of information transferring With varied content in specialized television channel, paid television has been a useful entertainment method serving for varied audience Developing paid television in recent years has motivated to increase the quality of broadcasting programs with regard to free-to-air information society With the core competence of information technology, Viet Nam will change the social economic structure to become a nation of advanced technology on economic knowledge and information contributing in successfully implementing the cause of modernization and industrialization Educating, nurturing should follow, update the content of state management Educating, nurturing should adapt with the object of specialization management Educating, nurturing should base on combination of foreign experience and domestic experience Educating, nurturing should base on combination between theoretical research and the practice of management in specialized industry Besides, legislation should regulate the standards of title system, professionalism fitting with the real conditions and ensure the professionalism career of each object People who work in this area have to equip journalism knowledge, information technology, legislation The State should have specified regulations on employing, arranging employers television channel and make fair competition environment among television stations in producing television channel 5.3.2 Solutions on completing paid television services 5.3.2.1.1 Building the suitable development plan for Vietnam paid television market The instruction of Vietnamese Party and the State towards the paid television market is that “development come with good management” This development is not With the development of broadcasting services, paid television has become technology-service involving with infrastructure and the trend of synergy in television, telecommunication onto one consistent infrastructure system Yet legislation framework on journalism has appeared to be outdated in judging the establishment of infrastructure for providing broadcasting services, especially standards of technology and service quality Policies on managing infrastructure, technology services are not uniformed with policies on information management Other shortcomings need to be repaired such as the limitation of editing foreign programs; permitting for signal receiving devices directly from the satelite, authorizing policies for paid television geographically, encouraging the development 21 22 of paid television under the market orientation … All shortcomings are need to be corrected and adapted with the future trend 5.3.2.1.3 Solutions on completing paid television service quality - Increasing the examinatin activities of companies in the field of paid television - Compelting the policies and investment suitable with paid television market - Increasing international cooperation in state management of paid television 5.3.2.1.4.Solutions on completing infrastructure management for providing paid television services When the Government officially promulgated regulation on paid television activities, services providers will coordinate and contract strategically in developing paid television all over the country This is the meaningful first step in executing the Government project on digitalizing broadcasting In the next stage, the State should encourage paid television service providers use the same infrastructure and exploit one content stock To provide paid television, the television station has to ask permission for establishing telecommunication infrastructure If companies have their own infrastructure, they are obviously permitted to provide services The management of content, services, television network and telecommunication networks is not uniformed 5.3.2.1.5 Solutions on completing paid television price management All paid television service providers agreed on regulations of the floor price for building and implementation common price President of Association of Vietnam paid television said that floor-price would be built basing on the production cost which help avoid dumping price and accepting the strategic losing in competition Applying floor-price to stabilizing the market in the developing period Without floor-price, there will be disorders in price competition, standards of technology, content and programs Association of Viet Nam paid television proposed state agencies to promulgate regulation on floor-price Secondly, building the system of criteria for assessing paid television service Fifthly, completing legislation document which clear defines production management, content providing, infrastructure management of signal transferring Sixthly, completing the system of document regulating linkage activities between program producers, service providers, advertising and other legal document for paid television market Seventhly, completing the legislation document on budget management towards paid television service provider to support their development and executing their responsibilities 5.4 Recommendations 5.4.1 General recomendations Firstly, the State should promulgate mechanism, policies to renew, improve the current mechanism of managing paid television under the legislation and the development of this industry in the market economy socialism oriented Policies for organizations, business in paid television market Socialized policies of paid television and international cooperation in television Secondly, building regulations on organization, standard of employees, relationship between departments, organizations, companies which business in paid television with ministries and international television organizations Thirdly, assigning VTV (Vietnam television station) cooperate with ministries, industries to completing system of legislation document on paid television, build national plan for paid television and plan project to 2020 5.4.2 Specific recommendations Firstly, in terms of mechanism for paid television: the State need to promulgate mechanism for organization, companies in paid television market, specialized state agencies need to promulgate guidance document in transferring self-control rights on executing responsibilities towards editing units to facilitate the consistent examination of television content on paid television Secondly, in terms of finance of paid television service providers following the organization of self-business: maintaining current regulations, no setting income limitation to ensure the salary for labours market working for political tasks and essential propaganda information Thirdly, completing regulations on business organizing, services in operations, policies on financing and taxing for paid television market Fourthly, renewing the mechanism, policies supporting building transferring infrastructure for service providers to reach island, mountainous, border area where ethnic minorities are residing and for Vietnamese foreigners 23 24 ... MANAGEMENT TOWARDS PAID TELEVISION IN VIET NAM 4.1 Overview on paid television in Viet Nam 4.1.1 The advent and development of paid television in Viet Nam Viet Nam has transformed from the central... The reality of Vietnam social economic development Vietnamese revolution has reached many achievements In addition to maintaining the high increase of economic development, Viet Nam has been one... for the fast and sustainable pace for paid television market in Vietnam 4.1.2 The reality of paid television in Vietnam Vietnam economic has eye-witnessed the impressive increase of paid television