Proposal not to include data center and cloud computing in the Telecommunications Law

Minister of Information and Communications Nguyen Manh Hung reported on the reception and explanation of opinions discussed in the group on the draft revised Telecommunications Law for the discussion session in the hall this morning, June 22.

Not in line with international commitments

The report of the Minister of Information and Communications said that some opinions suggested reviewing, clarifying, distinguishing, and regulating the scope of the Telecommunications Law with the Law on Electronic Transactions, the Law on Information Technology, etc.

Minister of Information and Communications Nguyen Manh Hung presented the revised Telecommunications Law to the National Assembly on June 2.

Some opinions suggested carefully studying data center services, cloud computing and OTT telecommunications to have appropriate policies and management methods, ensuring strictness, feasibility and limiting the increase in compliance costs of businesses, affecting the benefits that services in the new field bring as well as being consistent with international commitments.

There is also a proposal to consider expanding the scope of the draft law to data center and cloud computing services.

Accordingly, National Assembly delegates said that the Telecommunications Law's regulations on the management of data center and cloud computing services are inconsistent with international commitments.

Because changing the classification of these two services from the group of information technology and information services to the group of telecommunications services will impose market access restrictions on foreign investors (restrictions on investment capital and market access conditions). This leads to violations of international commitments, especially the CPTPP Agreement.

At the same time, regulations like the draft create limitations on legal barriers, increase administrative procedures for this type of service and reduce Vietnam's competitiveness in attracting investment.

Currently, only a handful of countries in the world (such as China, Thailand and Egypt) regulate the classification of these services as telecommunications services. However, with the exception of China, no country imposes restrictions on investment capital.

Will regulate in the direction of light management

Explaining this issue, Minister Nguyen Manh Hung said that the Ministry of Information and Communications will report to the Government to adjust the provisions of the law in the direction of light-touch management of the above services.

Mr. Hung explained that the OTT telecommunications service market is highly competitive and self-regulating, so the level of state management should be just enough to not hinder businesses' participation in service provision.

As for data center services and cloud computing services, these are service infrastructures that perform data storage and processing.

According to international experience, the management of these services emphasizes the issue of data protection. Therefore, in terms of the management of these services in telecommunications law (management of market access, business conditions, quality, etc.), a light management approach can be considered to promote development.

Regarding the proposal not to include data center and cloud computing services in the revised Telecommunications Law this time, Mr. Hung said that the Investment Law has identified data center as a conditional business line, but there are no specialized regulations to clarify the business conditions and legal framework to regulate the provision and use of this service.

The Telecommunications Law regulates the business activities of data center and cloud computing services to create a clear and favorable legal environment, allowing businesses to invest with confidence.

Data center and cloud computing infrastructure are important components of the national digital infrastructure and the infrastructure of the economy. Protecting users' rights and ensuring network safety and security for data center and cloud computing services are major issues that need to be institutionalized.

Mr. Hung affirmed that many countries in the world have issued regulations at different levels to manage data center and cloud computing services. Therefore, the Telecommunications Law stipulates the rights and responsibilities of data center and cloud computing service providers in ensuring the rights of users and ensuring security.

In addition, Mr. Hung also explained that the demand for electricity for data center development is very large. Therefore, data center services are within the scope of the Telecommunications Law to be included in the National Telecommunications Development Plan.

The national telecommunications plan will plan areas that meet the power requirements for businesses investing in data centers, encouraging development.

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