On the morning of March 19th, a sign announcing the "Auction of Radio Frequency Usage Rights" was displayed at the Radio Frequency Department building. The auction for the right to use radio frequencies in the C2 band (3700-3800 MHz) is scheduled to take place at 2:00 PM on the same day.

The starting price of the 3700 MHz to 3800 MHz frequency band for 15 years of use is 1,956,892,500,000 VND (one thousand nine hundred and fifty-six billion, eight hundred and ninety-two million, five hundred thousand VND). Enterprises eligible to participate in this auction include: VNPT, MobiFone …

The company that wins the auction for the 3700-3800 MHz frequency band will have to deploy at least 30% of the committed number of radio base stations within the first two years.

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A sign announcing "Auction of Radio Frequency Usage Rights" is displayed at the Radio Frequency Department building. Photo: TK

Previously, on March 14, 2024, based on the results of receiving registration applications for participation in the auction and the results of collecting the deposit, the National Joint Auction Company No. 5 announced the list of enterprises that did not meet the eligibility requirements to participate in the auction due to not paying the deposit for the C3 frequency band (3800-3900 MHz). Therefore, the auction for the right to use radio frequencies for the 3800-3900 MHz band could not be held because of the lack of the minimum number of eligible enterprises as stipulated.

When there are not enough enterprises participating in the auction, National Joint Stock Auction Company No. 5 will return the money for purchasing documents and deposits, no later than 2 working days from the scheduled date of the auction, to the enterprises that have purchased documents and submitted valid registration documents to participate in the auction.

Previously, on March 8, 2024, the B1 2500-2600 MHz frequency band auction was held, marking a new historical milestone for Vietnam as it transitioned from allocation and competitive bidding to auctioning for frequency allocation.

After 24 rounds of auction, Viettel was the winning bidder for the right to use the 2500MHz - 2600MHz frequency band, paying up to VND 7,500 billion for this band. Having won the B1 2500 - 2600 MHz band, Viettel will no longer have the right to participate in the next auction.

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By 2030, 5G will bring Vietnamese operators revenue of 1.5 billion USD. Photo: VNP

Currently, 5G frequency bands worldwide are divided into four groups: low-band (below 1,000 MHz), mid-band 1 (1,000 - 2,600 MHz), mid-band 2 (3,500 - 7,000 MHz), and finally high-band (24,000 - 48,000 MHz). Each frequency band has different advantages and disadvantages for network operators in the process of investing in 5G technical systems and optimizing costs. Generally, the lower the frequency cost and investment cost, the more attractive the service price offered to customers by network operators.

According to the Massachusetts Institute of Technology (USA), higher frequency bands will have larger bandwidth, stronger speed, lower latency and higher capacity than lower frequency bands.

According to the 2023 statistics of the GSA (Global Mobile Supplies Association), the number of 5G terminals supporting mid-band 2 (from 3,700 MHz) is currently equivalent to the number of devices supporting mid-band 1 (below 2,600 MHz). The deployment of 5G at 3700-3900 MHz by network operators in Vietnam will bring more choices for customers in terms of phones/terminals.

The Global System for Mobile Communications Association (GSMA) 2023 report shows that currently, mid-range band 2 (including the 3,700-3,900 Mhz band) is being used by 152 carriers, 8.4 times higher than the number of carriers using mid-range band 1 (2,600 MHz) with 18 businesses. This shows the popularity, trend and advantages of the 3,700-3,900 Mhz band in developing to 5G network in the coming time.

Forecasts show that by 2030, 5G will bring Vietnamese operators $1.5 billion in revenue. By 2025, 5G is likely to contribute to Vietnam's GDP growth of 7.3 - 7.4%.

According to a representative from VNPT, winning the 5G spectrum auction is not enough to meet the needs of customers and the public. Over the past period, the company has meticulously and systematically prepared a strategy for developing an ecosystem of digital products and services to maximize the potential of 5G.

VNPT will provide 5G services related to Cloud, IoT, AI, Machine Learning and Data Analytics in the industrial sector, providing IoT applications and diverse digital services to people. Not only that, the network operator also especially promotes improving the quality of service to each customer thanks to new products and services with better and more competitive prices along with attractive incentive programs... helping people access new technology easily and conveniently.

This is also how VNPT has been promoting and strongly supporting the national digital transformation, turning Vietnam into a digital nation with a strong digital economy, where every citizen becomes a digital citizen, and integrating with global trends.

A representative from MobiFone also confirmed that they will soon deploy 5G services after the spectrum auction. Currently, Vietnamobile remains silent about the 5G race.