Internet distributor of Phu My Hung area caught red handed

May 19, 2020 | 12:15
New Life Service Trading Co., Ltd., the internet distributor in Phu My Hung urban area, has allegedly been grossly overcharging internet fees for residents.
internet distributor of phu my hung area caught red handed
Business related to Internet in Phu My Hung urban area to be inspected

Entering his customer ID customer into the New Life app, Tran Thuan, a resident living in Hung Phuc area of Phu My Hung district in Ho Chi Minh City’s District 7, was surprised to see he was charged several times the amount he was supposed to be.

He subscribed to an internet package from Viettel through the distribution network of New Life and pays VND605,000 ($26.30) a month. After receiving a lot of complaints from residents regarding the quality and speed of internet, New Life reduced the charge to VND300,000 ($13) from April.

Thuan said that he used to transfer money to New Life every month, however, when he wanted to pay through an application this month, he was surprised to see that the charge tied to his customer ID was only VND110,000 ($4.8).

Following this, numerous residents checked the charge on the app to find that the actual fees are several times lower than what they usually pay for New Life.

"I usually paid VND649,000 ($28) to New Life but the fee is only VND154,000 ($6.7) per month. I know that New Life needs to make some profit on the internet fees but I was quite taken aback by the nearly VND500,000 a month they overcharge each household,” another resident in Phu My Hung said.

Responding to the issue, Viettel’s representative said that the company provides internet to New Life at the same fee it does to other distributors.

Meanwhile, a representative of New Life said that they had to go into some expenses, including constructing the infrastructure system at Phu My Hung, operation costs, registration fees.

Thus, the company has already cut operating costs and some other expenses to provide internet services to residents at a lower price than the previous provider.

However, this explanation did not satisfy the residents. “The cut prices are still double or triple, or even four times higher than the original price of Viettel. This is beyond reason,” Vinh Loi, a resident, said.

“In addition to Phu My Hung, other distributors usually spend similar amounts on infrastructure and operating costs, but the quality and price they provide to subscribers are much better," a resident in Green Valley area said.

As a result, Ho Chi Minh Department of Information and Communications is inspecting New Life Service Trading Co., Ltd. for exploiting its dominant position in the internet business in Phu My Hung urban area.

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