Billionaire Elon Musk's Starlink satellite internet service is coming to Vietnam.

The government has just allowed Space Exploration Technologies Corporation (SpaceX), founded by billionaire Elon Musk, to pilot the Starlink satellite internet service for users in Vietnam.

Elon Musk's Space Exploration Technologies (SpaceX) corporation will pilot its Starlink satellite internet service for users in Vietnam - Photo: QUANG DINH

Two types of satellite telecommunications services are planned for pilot implementation: fixed satellite services (Internet access; leased lines for mobile base stations); and mobile satellite services (Internet access at sea and on airplanes).

Maximum 600,000 subscribers

According to a decision by the Prime Minister , SpaceX is authorized to conduct a controlled pilot program for investing in and operating telecommunications services with network infrastructure, specifically satellite telecommunications networks using low-orbit satellite technology in Vietnam.

SpaceX and the business established in Vietnam (to provide the service) must commit to ensuring compliance with the requirements and conditions for the pilot deployment, including requirements regarding: the type of telecommunications service deployed, the scope of deployment, the maximum number of subscribers, the frequency used, etc. The implementation must be based on the principle of ensuring Vietnam's national defense and security.

SpaceX is also responsible for implementing the proposed contents in the investment plan and providing Starlink satellite internet services in Vietnam, such as: supporting essential connectivity programs, cooperating with Vietnamese businesses to distribute hardware and provide services to users, investing in the supply chain and building ground infrastructure...

Notably, the regulations stipulate a maximum of 600,000 subscribers for the pilot program. This figure includes the total number of subscribers to the aforementioned telecommunications services of businesses established in Vietnam and those of telecommunications companies reselling the services.

Domestic businesses are not afraid.

Speaking to Tuổi Trẻ about the arrival of a leading global competitor in the Vietnamese market, many domestic internet service providers said they are not afraid of direct competition.

Mr. Nguyen Ba Dung, Deputy Director of Virtual Mobile Network Business Development atFPT Retail, commented that SpaceX – through its Starlink service – provides high-speed satellite internet with lower latency compared to traditional satellite services. However, their main target customers may be in remote areas where terrestrial telecommunications infrastructure is underdeveloped or weak; or businesses and organizations needing stable connections in locations where fiber optic cables are difficult to deploy; or individual customers needing high-speed connectivity without being dependent on mobile or fiber optic networks...

"Meanwhile, FPT Retail's services focus on customers using traditional mobile services. Because the customer base is different, SpaceX will not affect our customers in the short term. But in the long term, if service costs drop significantly, they could compete in certain segments," Mr. Dung said.

Speaking to Tuổi Trẻ newspaper, a leader of a major Vietnamese telecommunications company (who requested anonymity) stated that there are two factors that domestic businesses need not worry about. Firstly, the regulations for testing SpaceX's satellite internet service are limited to 600,000 subscribers over five years. "Compared to the total number of internet users in Vietnam, both mobile and fixed-line, which is over 100 million, that number is insignificant."

Secondly, the cost of satellite internet services is unlikely to be as affordable as high-speed fiber optic internet or 5G services currently available in Vietnam. This also means that the target customer base will be quite specific, such as users on airplanes, at sea, in special locations, or requiring specialized connectivity.

The cost of using Starlink services is not cheap.

Speaking to Tuoi Tre newspaper, a large number of Internet users in Vietnam, especially technology enthusiasts, expressed their desire to soon experience satellite Internet services, particularly from billionaire Elon Musk's Starlink satellite system.

"Satellite internet services could be a direct competitor to the 5G services already available in Vietnam. Currently, all domestic network operators are providing commercial 5G services, with very good speeds in areas with good signal coverage, and at acceptable prices."

"Later, when 5G coverage expands, the advantage of satellite internet services may only remain on airplanes or at sea..." - commented Thanh Long, administrator of a technology-related social network.

According to research from various sources and countries that offer Starlink satellite internet services, users and businesses incur significant costs. For example, individual users may have to pay a subscription fee of around $110 per month, plus a receiver equipment cost of $599. Business customers may pay around $500 per month for the service and approximately $2,500 for equipment.

In late 2024, the service added the Starlink Mini package, with a device price of $599 and monthly subscription fees ranging from $50 to $165. The device is compact, can be carried in a backpack, and allows for a 30-day free trial without a contract...

Ground gateway stations must be located within Vietnamese territory.

Starlink is a satellite internet project developed and deployed since 2019 by SpaceX, a company founded by billionaire Elon Musk. SpaceX has launched approximately 30,000 satellites into low Earth orbit, forming a network that covers the globe.

Starlink satellites are designed to broadcast broadband internet from space to Earth. Currently, Starlink service is available in 116 countries and territories, with over 4 million subscribers worldwide.

According to a decision by the Prime Minister, SpaceX will have to place a ground gateway station in Vietnam to ensure that all traffic from subscribers in Vietnam passes through this gateway station and connects to the public telecommunications network in Vietnam.

The pilot program will be implemented for 5 years from the date the SpaceX-established enterprise in Vietnam is granted a telecommunications service business license and must end before January 1, 2031.

During a meeting with Prime Minister Pham Minh Chinh in September 2024, Tim Hughes, Senior Vice President of SpaceX, expressed: "SpaceX wishes to invest in and provide Starlink satellite internet services in Vietnam, including Starlink services for education, training, and disaster prevention... We request that Vietnam prepare the necessary infrastructure and other conditions for the project to be highly effective, contributing to Vietnam's efforts to achieve 100% internet coverage for its population."

Malaysia and Indonesia are piloting Starlink.

In Malaysia and Indonesia, Starlink is being piloted specifically in remote areas to improve internet connectivity for the local population.

Billionaire Elon Musk (right) holds up the agreement to launch Starlink service in Indonesia on May 19, 2024 - Photo: AFP

According to Astro Awani, in Malaysia, the government granted Starlink a 10-year license in July 2023, allowing the company to operate without restrictions on foreign capital. Initially, Malaysia focused on deploying Starlink in the education sector, with 40 sets of equipment distributed to schools and higher education institutions in remote areas.

Meanwhile in Indonesia, Starlink officially launched its service in May 2024, aiming to expand internet connectivity in underserved areas. One of Starlink's notable applications in Indonesia is its support for healthcare and education. This service not only helps improve healthcare but also provides students in the region with better learning opportunities.

The launch of Starlink in these Southeast Asian countries marks a significant step in bridging the digital divide, providing access to high-speed internet for millions of people in rural and island areas.

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Source: https://tuoitre.vn/dich-vu-internet-ve-tinh-starlink-cua-ti-phu-elon-musk-sap-vao-viet-nam-20250330231622.htm