A government official has clarified the purpose of the LAK 3,000 (USD 0.14) monthly telecom “security fee” following public backlash sparked by a viral video of a National Assembly session, in which even the Minister of Finance admitted he was unaware of how the money was being used.
Palinya Phommaviseth, Acting Head of the Secretariat of the Telecommunications and Digital Transformation Development Fund under the Ministry of Technology and Communications, addressed the issue in an interview with Lao National Radio on 19 June.
He explained that the monthly deduction, applied to all mobile numbers beginning with the service codes 020 and 030, is a “security services fee” aimed at ensuring the safe and secure use of telecommunications and internet services across the country.
Palinya noted that the funds collected are used to develop, upgrade, and protect national telecom infrastructure.
He further emphasized that the fee is part of a broader government strategy to improve digital infrastructure, expand telecom access in rural areas, enhance cybersecurity, and support digital transformation across multiple sectors.
In addition to the monthly contributions from mobile users, the fund also receives support from the state budget, telecom service providers, donations, fines, and other legal sources of income related to telecommunications.
These combined resources are directed toward expanding infrastructure, supporting digital government projects, strengthening national cyber defense, and training skilled professionals in the digital field.
Parinya’s explanation followed a viral video on Facebook in which a National Assembly member questioned Minister of Finance Santiphab Phomvihane about the purpose of the fee.
In the clip, the minister openly admitted he had no idea where the money was going but promised to look into it and provide a formal update.
The minister’s admission triggered public outrage, with thousands questioning the government for months of unclear deductions.
Ongoing Scam Calls Raise Doubts Over Fee’s Effectiveness
Nevertheless, the fee was not the only issue concerning the public; frequent scam calls amidst the monthly fee were also a cause for concern.
In response to ongoing complaints about scam calls and telecom fraud despite the fee, Parinya acknowledged the issue, pointing out that such criminal activity is global, even affecting developed countries.
He added that Laos is working with the Ministry of Public Security and the National Internet Center to establish a cyber security alert center to better prevent telecom-related crimes.
Palinya also addressed concerns about value, citing 2023 data from Cable.co.uk. Laos ranks second in ASEAN and 14th globally for cheapest mobile internet, and 10th in ASEAN and 47th globally for affordable cable internet (FTTx) services.
While the government has clarified the purpose of the telecom fee, ongoing concerns over scam calls and transparency remain, prompting calls for more effective oversight and communication with the public.