Ericsson Technology Group believes that 5G technology will bring new revenue sources to network operators, with Internet of Things (IoT) applications and high-resolution video applications. The Vietnamese government is focusing on supporting other industries to apply digital transformation and digital economy . Therefore, with major network operators in Vietnam having been licensed for 5G bandwidth, the 5G commercialization process needs to be accelerated.
Carriers... hesitate
Ms. Rita Mokbel, Director of Ericsson Vietnam, said: “Ericsson products have been ready for 5G technology deployment since 2015, with more than 10 million 5G-ready broadcasting devices shipped. We will leverage our regional and global deployment experience as well as our strong technology to support a smooth, large-scale 5G deployment in Vietnam.” With 5G, high-speed internet access packages on the 5G platform, with connection speeds of hundreds of Mbps, may be the first services that end users can experience immediately. However, network operators said they are still planning and strategizing their business and will provide 5G services to the domestic market, expected in 2024.
A network operator representative shared: “We are considering many things, such as packages for individual users, packages for customers according to their needs... mainly focusing on large provinces and cities. We will have a 5G service exclusively for businesses to use for business network management applications, smart factories”. A MobiFone representative also said that 5G mobile data service will be divided into many packages according to speed and there will be many types of value-added services according to the number of 5G stations of the network operator. Meanwhile, another network operator said that initially, the number of packages and services on the 5G network will be quite modest because the 5G infrastructure is still limited and during the construction period, it will be difficult to deploy and provide in sparsely populated areas with low incomes.
This hesitant reality is far different from 2022, when network operators are racing to massively deploy 5G technology pilots across the country. This shows that they are very cautious in commercializing 5G, even "watching each other" because commercialization is entering a competitive race. "Investing in 5G requires large capital, related to the investment mechanism and business operations. Therefore, deploying 5G is not only a matter of whether the technology is ready or not, but also a matter of business and effective system management," said Mr. Mai Liem Truc, former Permanent Deputy Minister of the Ministry of Posts and Telecommunications (now the Ministry of Information and Communications).
Easily upgrade 4G to 5G
According to forecasts from technology corporations, the number of 5G subscribers worldwide is expected to reach nearly 5.6 billion by the end of 2029; global 5G coverage will increase from 40% in 2023 to 80% by the end of 2029. Currently, about 300 communications service providers (CSPs) worldwide have provided 5G services, of which about 50 CSPs have deployed 5G standalone (5G SA). 5G networks continue to grow strongly in all regions and will account for about 60% of total mobile subscribers by the end of 2029.
“5G subscriptions continue to grow strongly, with enhanced mobile broadband and fixed wireless access being the top use cases, demonstrating the potential for 5G to have a significant impact on service providers’ offerings,” said Fredrik Jejdling, Executive Vice President and Head of Networks at Ericsson.
Statistics show that in the first 3 months of 2024, there were about 160 million new 5G subscribers globally, bringing the total to more than 1.7 billion subscribers. It is expected that there will be a total of nearly 600 million new 5G subscribers in 2024. Mobile network data traffic increased by 25% year-on-year from the end of March 2023 to the end of March 2024, mainly due to the transition of users to new generations of networks and data-intensive services.
“In addition to gaining new customer segments and additional revenue, we also see significant benefits from 5G in reducing current operating costs for network operators. For example, with 5G technology, the network can handle 10 times more capacity, reducing energy consumption by 30%. As data traffic continues to grow rapidly in Vietnam, 5G will meet this demand and significantly reduce energy consumption costs,” said Ms. Rita Mokbel.
To accelerate 5G coverage and commercialization, telecommunications experts say that 4G base stations in Vietnam can be easily upgraded to 5G. In the first phase, 5G technology will allow domestic service providers to provide enhanced mobile broadband experiences to users, increase the capacity of network systems to manage increasing data traffic, and then there will be other services commensurate with the value of 5G.
By 2030, 5G network covers 99% of the population
The Prime Minister has approved Vietnam's information and communications infrastructure planning for the 2021-2030 period, with a vision to 2050, with the goal of achieving an average download speed of at least 100 Mbps for the 5G network by 2025 (the average speed of 4G is 30-40 Mbps), and by 2030, the 5G network will cover 99% of the population. To realize the above goals, 2024 is the right time to license the 5G commercialization band, and the Ministry of Information and Communications has also identified 2024 as the year of universalizing digital infrastructure, moving towards Vietnam's digital infrastructure having super-large capacity, super-wide bandwidth, universality, sustainability, etc.
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Source: https://www.sggp.org.vn/cham-thuong-mai-hoa-5g-post749836.html
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