In the context of rapidly developing telecommunications technology, telecommunications service use contracts have become an indispensable component of transactions involving the provision and utilization of such services. In the following article, NPLaw will analyze the necessity and governing legal framework of these contracts in detail. 

I. The necessity of telecommunications service use contracts 

Telecommunications service use contracts serve as an essential legal instrument ensuring the protection of rights and interests of the parties involved in the provision and use of telecommunications services.

Through such contracts, the terms relating to service provision, service use, and other relevant obligations are clearly defined, thereby minimizing disputes and safeguarding the rights of all parties. To ensure legality and mitigate legal risks, it is crucial to have a sound understanding of the regulatory framework governing telecommunications service use contracts.   

II. Regulations governing telecommunications service use contracts 

1. What is a telecommunications service use contract? 

Pursuant to Article 13 of Decree No. 25/2011/ND-CP (as amended by Clause 4 Article 1 of Decree No. 81/2016/ND-CP), a telecommunications service use contract is understood as an agreement between a telecommunications enterprise and a user of telecommunications services regarding the provision and use of telecommunications services (such as telephone services, Internet services, television services, etc.). Such a contract may be concluded in oral or writing, or through specific conduct.  

2. Essential contents of telecommunications service use contracts 

Under Article 13 of Decree No. 25/2011/ND-CP (as amended by Clause 4 Article 1 of Decree No. 81/2016/ND-CP), for telecommunications services that are required to follow standard form contracts, the contracting parties must comply with the prescribed standard forms.    

According to Clause 2 Article 5 of Circular No. 39/2016/TT-BTTTT on general requirements for standard form contracts: A standard form contract for the provision and use of telecommunications services must include at least the contents stipulated in Appendix 1 attached to this Circular. Accordingly, the minimum mandatory contents of a standard form telecommunications service contract include:

  • Legal basis for forming the contract;
  • Information on the parties entering into the contract;
  • Description of the telecommunications service to be provided;
  • Rights and obligations of the parties.

Thus, the telecommunications service contract must contain, at minimum, the above mandatory elements. 

3. Requirements for drafting telecommunications service use contracts 

Under current regulations, the parties are entitled to agree on the contents of the contract; however, the drafting must comply with telecommunications regulations and consumer protection rules.

Particularly, when drafting telecommunications service use contracts, enterprises must pay attention to cases where standard form contracts are mandated. Such standard contracts must meet the general requirements set out in Clauses 1 and 2 Article 5 of Circular No. 39/2016/TT-BTTTT and Article 6 of Decree No. 55/2024/ND-CP. In addition, standard form contracts must include at least the contents specified in Appendix 1 to Circular No. 39/2016/TT-BTTTT.

III. Common questions regarding telecommunications service use agreements

1. Is notarization required for telecommunications service use agreements?

Under the law, notarization is not mandatory for telecommunications service use contracts unless otherwise agreed by the parties. Contracts may be concluded orally, in writing, or through specific conduct. However, if the parties deem it necessary to enhance legal certainty and minimize disputes, they may agree to have the contract notarized.

2. May the parties include sanction clauses in telecommunications service use contracts?

Parties may agree on any terms not prohibited by law, including sanction clauses for breach of contractual obligations. Sanction provisions must be clearly stated in the contract and must comply with civil and commercial laws, including statutory limits on sanction amounts.

3. What are the obligations of the telecommunications service provider?

According to Appendix 1 of Circular No. 39/2016/TT-BTTTT on minimum contents of standard form telecommunications service contracts (as amended by Circular No. 16/2018/TT-BTTTT), the obligations of a telecommunications service provider include:

  • Ensuring the quality of telecommunications services as publicly announced by the enterprise;
  • Ensuring the confidentiality of users’ information and only disclosing such information to third parties with the user’s consent, except as otherwise required by law;
  • Not refusing to enter into or unilaterally terminate contracts with users, except in cases specified in Article 26 of the Law on Telecommunications;
  • Notifying users at least 30 days prior to cessation of telecommunications services;
  • Complying with legal requirements on consumer protection;
  • Resolving users’ complaints within the statutory time limit.

Beyond these minimum obligations, the parties may agree on additional terms as permitted by law.

4. Which user information must be kept confidential by telecommunications enterprises? Should this be included in the contract? 

Under Clause 4 Article 6 of the Law on Telecommunications 2023 on information confidentiality: Telecommunications enterprises must not disclose users’ personal information, including subscriber information (name, address, subscriber number, and other personal details provided when entering into the contract) and information on service usage (sender and recipient subscriber numbers, device locations, time of communication, duration, and Internet addresses), except in specific cases provided by law.

Accordingly, such information must be kept confidential. Including confidentiality provisions in the contract is necessary to protect users’ privacy and establish a legal basis for handling violations.

5. What happens if the telecommunications service provider fails to provide services as agreed?

If a party fails to execute its contractual obligations, it may take the following legal consequences:

  • Liability for damages: if the service provider’s failure to provide services causes damages, it must compensate in accordance with the contract and the law;
  • Sanctions for breach: if the contract contains sanction clauses, the breaching party must pay the specified sanction;
  • The user may terminate the contract if the service provider commits a serious breach of contractual obligations.

6. When is the telecommunications service use contract invalid?

Under Article 407 of the Civil Code 2015, a contract is invalid in cases such as:

  • Violation of a legal prohibition or contravention of social morals;
  • Sham transactions;
  • Conclusion by minors, persons lacking legal capacity, or persons with impaired cognition or behavioral control;
  • Mistaken understanding;
  • Fraud, coercion, or duress;
  • Conclusion by a person incapable of understanding or controlling their conduct;
  • Non-compliance with mandatory form requirements;
  • Impossible performance.

These rules apply equally to telecommunications service use contracts. 

IV. Legal consulting services relating to telecommunications service use contracts 

The above article summarizes the current legal framework governing telecommunications service use contracts. With an experienced team of lawyers and legal specialists, NPLaw provides reputable and professional legal services to ensure the best protection of clients’ lawful rights and interests. Should you require legal assistance, please contact NPLaw for advice and support.