Auction of 4G and 5G frequency usage rights failed

Đấu giá quyền sử dụng tần số 4G, 5G bất thành - Ảnh 1. — 5G network will contribute positively to digital transformation in Vietnam

Information on the results of the 4G and 5G spectrum auction was announced by the Ministry of Information and Communications at the Ministry of Information and Communications' regular June press conference held on the afternoon of June 5.

According to the Ministry of Information and Communications, on May 15, May 25 and June 2, this agency organized an auction of the 2,300 MHz band including 3 frequency blocks A1 (2,300 - 2,330 MHz), A2 (2,330 - 2,360 MHz), A3 (2,360 - 2,390 MHz).

However, by the deadline for submitting registration documents to participate in the auction of each block A1, A2, A3, no enterprise had submitted documents and paid the deposit to register to participate in the auction. Therefore, the auctions for the right to use frequencies for the A1, A2, A3 frequency bands were unsuccessful.

Previously, after the Ministry of Information and Communications issued and publicly announced the plan to organize an auction for the right to use the frequency band 2,300MHz at the end of February.

According to the Radio Frequency Law, network operators who want to have good frequency bands to provide services to customers will have to bid.

Enterprises participating in the 2,300 - 2,400 MHz frequency band auction can deploy telecommunications networks and services using IMT - Advanced (4G) or IMT-2020 (5G) technology, according to the principle of deploying which technology will apply the requirements for deploying telecommunications networks with the corresponding technology (IMT - Advanced, IMT - 2020).

After the announcement, four telecommunications enterprises submitted applications, namely VNPT, Viettel, MobiFone and Vietnamobile, and were granted certificates of eligibility to participate in the auction by the Ministry of Information and Communications.

According to the announcement of the Radio Frequency Department, the starting price for the auction of the 2,300 - 2,400 MHz frequency for the 3 frequency bands is 17,394 billion VND. Specifically, for the frequency bands A1 (2,300 - 2,330 Mhz), A2 (2,330 - 2,360 Mhz), A3 (2,360 - 2,390 Mhz), the starting price is 5,798 billion VND and the usage period is 15 years.

The minimum deposit is 5% and the maximum is 20%. Specifically, the deposit applied at the auction for 3 frequency blocks is 580 billion VND/block.

By the end of 2022, the Ministry of Information and Communications has licensed telecommunications businesses to test 5G in 40 provinces and cities.

However, spending a large amount of money to invest in 4G and 5G bands in the context of declining traditional telecommunications services is something that network operators must consider.

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