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Hanoi witnessed the inaugural bidding session for the rights to develop and exploit Vietnam’s 5G frequencies, marking a pivotal step in the nation’s technological advancement. With three such sessions slated for this round, four candidates eagerly stepped forward following Minister Nguyen Manh Hung’s approval of the bidding sessions’ organisation in January.
As per regulations, only three telecom companies – emerging victorious in the bidding sessions – will secure permits for the development and exploitation of the country’s three 5G frequency bands. This milestone grants telecom entities the coveted license to provide mobile communication services upon winning the rights to develop and exploit specific 5G frequency bands.
The year 2024 has been earmarked by the Ministry of Information and Communications for the nationwide commercialisation of 5G services. Following three years of piloting this cutting-edge technology, Vietnam’s leading telecom companies are poised to assess the current infrastructure’s efficacy and network performance, crucial for devising an apt business strategy.
Vietnam boasts five networks equipped with robust infrastructure, namely Viettel, VNPT, MobiFone, Vietnamobile, and Gtel Mobile. However, market dominance predominantly lies with the first three entities, positioning them as frontrunners in the race to secure 5G exploitation rights.
As the prospect of 5G service commercialisation in Vietnam promises lucrative returns, Viettel, VNPT, and MobiFone are keen to expedite the process, anticipating a rapid transition towards a digital society, economy, and governance structure.
During a recent working session with the Prime Minister, Tao Duc Thang, President cum General Director of Viettel Group, disclosed plans to achieve nationwide 5G network coverage by 2024. A substantial investment of nearly VND30 trillion (US$1.22 billion) has been earmarked to bolster connectivity in remote areas.
Insights from renowned telecom giants underscore 5G’s pivotal role as the cornerstone of future digital connectivity, bridging not just human-to-human but also human-to-machine interactions. Projections suggest that by 2030, Vietnam’s 5G service providers could amass revenues totalling US$1.5 billion. Following extensive piloting across 55 provinces and cities, widespread anticipation for the nationwide rollout of 5G services has been palpable among mobile users.
On the heels of the auction, Viettel announced its successful acquisition of the rights to utilise the 5G radio frequency on the 2500-2600 MHz band block for a 15-year term, following an auction held on the same day. Viettel has pledged to imminently roll out 5G services nationwide.
Consequently, Viettel has intensified efforts in researching and manufacturing 5G connection terminals, conducting pilots in high-tech parks, research centres, and universities, signalling a proactive stance towards ushering in the era of 5G connectivity nationwide.
A Viettel spokesperson emphasised the critical role of the 2500-2600 MHz waveband, citing its efficacy in deploying both 4G and 5G networks, thereby enhancing existing 4G services and enabling the official launch of 5G services. Notably, this waveband offers optimal coverage, boasting a radius 1.3 times larger than the C-band (3500 MHz).
Obtaining auction rights for 5G deployment is crucial for Viettel to stay aligned with global telecom trends, enabling the evolution from 4G to 5G technology and accelerating national infrastructure development, thereby enhancing the digital service ecosystem and stimulating economic growth.
Viettel’s 5G devices, tailored for operation on the 2500-2600 MHz waveband, are poised for deployment, reaffirming Viettel’s commitment to launching 5G services expeditiously.
Doan Quang Hoan, Deputy Chair of the Vietnam Radio Electronics Association, stressed the importance of Vietnam embracing 5G technology, underscoring its status as a global mobile communications trend.
Vu Thu Hien from the Ministry of Information and Communications (MIC) highlighted the significance of mid-range bands in 5G deployment, supporting 4G and alleviating network congestion. Following the auction of mid-range wavebands, MIC will reassess market demand and proceed with additional waveband auctions.
