Vietnam has tested 5G technology in 55 provinces and cities nationwide. Currently, two network operators, Viettel and VNPT-VinaPhone, have successfully bid for the right to operate 5G frequency bands. The commercialization and development of 5G is eagerly awaited by businesses and users alike.
Targeting concentrated areas
Since 2020, Vietnam has been one of the first countries in Southeast Asia to pilot the application of 5G. By 2022, many users had experienced 5G technology on their smartphones. However, the target of 5G is still primarily focused on concentrated areas.
A prime example is Viettel's successful testing of a private 5G mobile network (5G Private Mobile Network - 5G PMN) for the Pegatron factory in Hai Phong City, demonstrating the development direction of this technology. This is a smart, automated factory based on 5G mobile connectivity, offering the advantages of high speed and low latency. The 5G PMN connects applications such as augmented reality for video calls on the Public Cloud; assembly station applications; product testing management; and live production process monitoring… helping the Pegatron factory reduce costs, increase productivity, boost profits, and better control processes through real-time data collection.
Localized 5G applications have been widely adopted in tourist areas, industrial zones, and urban centers worldwide , creating the necessary infrastructure for Big Data and enabling the Internet of Things (IoT) connectivity across all entities. This simplifies management, allowing administrators to receive alerts from multiple points in real time. Experts believe that 5G PMN (Private Network Network) is a rapidly developing global trend, particularly effective for businesses with factories, warehouses, ports, airports, etc., which require secure and reliable connectivity.
In Vietnam, industrial parks, seaports, airports, and logistics centers are present in almost all provinces, cities, and economic zones nationwide. Therefore, the application of 5G PMN is expected to strongly boost the development of the economy in general. “For VNPT-VinaPhone, deploying 5G technology will be an opportunity to increase revenue and bring new products and services to the market, transforming the existing user experience. In the long term, 5G will open up business opportunities between enterprises (B2B),” shared Mr. Nguyen Quoc Khanh, Deputy Head of Technology Department, VNPT Group.
Individuals still have needs.
Information presented at the "5G Beyond Growth" conference in February 2024 revealed that over 20% of global 5G carriers have adopted a rate-based pricing model to develop individual 5G subscribers. In Thailand, the added benefit of 5G acceleration mode, allowing subscribers to choose different speed levels to best meet their needs, has helped carriers increase their ARPU (Average Revenue Per User) by approximately 23%.
By the end of 2023, more than 300 commercial 5G networks had been deployed worldwide. After five years of commercialization since 2019, over 1.5 billion people worldwide were using 5G, compared to nine years for 4G.
However, in Vietnam, to date, Viettel and VNPT-VinaPhone have not yet released any information regarding the development of 5G subscriptions for individual users, despite having tested the service with superior speeds.
Mr. Doan Quang Hoan, Vice President and Secretary General of the Vietnam Radio and Electronics Association, stated: “Compared to countries that have already commercially deployed 5G, Vietnam may be slightly behind. In Southeast Asia, some countries such as Thailand, Singapore, the Philippines, and Malaysia have already deployed 5G. Considering the application requirements, the cost of end-user equipment, and economic efficiency, Vietnam has many opportunities to promote 5G.” A telecommunications expert also commented: “The immediate opportunity is for network operators to focus on four key elements: high-quality networks, diversified business models, emerging services, and the creation of artificial intelligence to seize opportunities when developing 5G.”
While 2G, 3G, and 4G networks primarily served individual users (B2C model), 5G targets businesses (B2B model). Therefore, to grow individual subscribers, network operators need new products and services based on 5G technology to meet the diverse needs of society. This expands the potential and value of 5G through innovative and promising applications.
“5G will be a crucial infrastructure platform to accelerate Vietnam’s digital transformation. In the initial phase, 5G will enable service providers in Vietnam to offer enhanced mobile broadband experiences to users, as well as improve the capacity of network systems to manage increasing data traffic. Over time, 5G will be well-utilized for smart businesses,” emphasized Rita Mokbel, Director of Ericsson Vietnam.
KIM THANH
Source: https://www.sggp.org.vn/cho-thuong-mai-hoa-5g-post737984.html
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