Four mobile operators are participating in the auction for 4G and 5G frequencies.

VietNamNet•17/05/2023

Only three network operators will be licensed to use the 2300-2400 MHz frequency.

As predicted by VietNamNet , apart from the mobile network operators already providing services, other businesses did not participate in the 4G and 5G frequency auction, even though all businesses that met the criteria could have participated. Thus, the mobile market has not seen any new players entering the 4G and 5G technology market.

Representatives from the Department of Telecommunications ( Ministry of Information and Communications ) have confirmed that four network operators will participate in the auction for 4G and 5G frequencies: Viettel, VNPT, MobiFone, and Vietnamobile. These four operators have met the eligibility requirements to participate in the auction to receive licenses to provide telecommunications services.

After passing this initial application review, the network operators will officially participate in the auction to obtain 3 frequency licenses for providing 4G and 5G services. The A1 (2300 – 2330 MHz), A2 (2330 – 2360 MHz), and A3 (2360 – 2390 MHz) frequency bands have a starting price of 5.798 billion VND and a usage period of 15 years.

Within 15 days of receiving the auction minutes, the Minister of Information and Communications shall issue a decision approving the auction results and publicly announce them on the Ministry of Information and Communications' electronic portal.

Therefore, only three network operators will be licensed for the 2300-2400 MHz frequency. To date, the exact amount each operator will bid for the frequency remains confidential.

Considering the most pressing need, Vietnamobile urgently requires new frequency bands to provide services to customers, as they currently have the fewest available bandwidth resources. During the previous 3G frequency band bidding process, the network partnered with EVN Telecom to obtain the 3G band license. After EVN Telecom transferred its rights to Viettel , Vietnamobile was left with only half of the available bandwidth. Without 4G and 5G bandwidth, the network will have limited opportunities to compete in providing mobile broadband services to customers in the future.

However, having to spend at least nearly 400 billion VND annually to acquire spectrum, not to mention investing in expanding coverage and 4G and 5G equipment, presents a difficult dilemma for Hutchison. Their piecemeal investment from the time when the Vietnamese mobile market was still a fertile ground has put Hutchison in a dilemma, even though they are considered to have the best management and cost optimization systems.

For Viettel, VNPT, and MobiFone , this frequency band will be needed to improve service quality, especially 4G services. However, the starting price of 5,798 billion VND is also a significant investment for these network operators.

Previously, the Ministry of Information and Communications had licensed telecommunications companies to test 5G in 40 provinces and centrally-administered cities. In 2022, the Ministry encouraged businesses to continue testing 5G applications, assessing market demand and technical solutions to develop the most effective business plan once officially licensed.

According to international telecommunications equipment suppliers, 5G will be the digital infrastructure that will almost completely replace physical infrastructure in building the foundation and connectivity of future societies. This digital infrastructure creates connections not only between people but also between people and machines, and between machines themselves. These are the foundations for automation and transformation across industries.

However, international telecommunications experts believe that 4G remains important for Vietnam and will continue to exist for some time. Continued investment in 4G is also crucial, as it will remain the dominant network for the next few years. But 5G will be deployed in hotspots, industrial zones, and major cities, and could then develop rapidly from 2025. By 2030, 5G is expected to generate $1.5 billion in revenue for Vietnamese operators.

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