Commitment to 5G

Last weekend, the first auction of frequencies for 5G networks took place in Hanoi . Three auctions will be held for the three frequency bands designated for 5G in this round.

Viettel 's 5G was tested in late 2020 in Thu Duc City. Photo: TAN BA

According to regulations, only three businesses will receive 5G service frequency band licenses through three auctions. Currently, four businesses have submitted applications to participate in the auction for the three 5G frequency bands. In mid-January 2024, Minister of Information and Communications Nguyen Manh Hung approved the decision on the plan for organizing the auction of radio frequency usage rights for the three frequency bands for 5G. With the Ministry of Information and Communications' open frequency licensing policy, all eligible businesses can participate in the auction.

If a business wins the 5G frequency auction, it will then be licensed to provide mobile communication services. 2024 is the year the Ministry of Information and Communications will commercialize 5G nationwide, and 5G represents a crucial new development space for network operators. After three years of testing, businesses now have sufficient grounds to evaluate the quality of the network infrastructure, its effectiveness, and their business plan.

The Vietnamese mobile market currently has five networks with infrastructure: Viettel, VNPT, MobiFone , Vietnamobile, and Gtel Mobile, but the market share is almost entirely dominated by Viettel, VNPT, and MobiFone. Theoretically, these three major carriers have the most advantages and the highest determination in the race to win 5G frequency licenses.

Currently, considering market factors and investment development, the commercialization of 5G in Vietnam has begun to show effectiveness. Therefore, VNPT hopes to accelerate the commercialization of 5G. A representative from MobiFone also affirmed that they will deploy services as quickly as possible if they receive a 5G license. Meanwhile, Viettel has proposed that the Ministry of Information and Communications expedite the auction of 5G frequencies as soon as possible, as this will promote the digital society, digital economy, and digital government.

During a recent meeting with the Prime Minister, Chairman and CEO of Viettel Group, Tao Duc Thang, stated that Viettel will deploy 5G coverage nationwide in 2024; Viettel will also invest nearly 30,000 billion VND to expand frequency coverage, including connecting to remote and rural areas.

Studies and global deployments by Ericsson and Huawei indicate that 5G networks will almost completely replace physical infrastructure in building the foundation and connectivity of future societies. This digital infrastructure creates connections not only between people but also between people and machines, and between machines themselves. Studies also predict that by 2030, 5G is expected to generate $1.5 billion in revenue for Vietnamese operators.

In Vietnam, mobile operators have so far tested 5G in 55 provinces and cities. Through these trials, customers have expressed a strong desire for commercial 5G networks to be available soon. Recently, Vietnamese businesses, notably Viettel, have been promoting research and production of 5G-enabled devices; they will also be piloting 5G in high-tech zones, universities, and research institutes. These factors are driving businesses' determination to realize commercial 5G networks in 2024, starting with the successful auction of 5G frequency bands during this period.

TRAN LUU

Source: https://www.sggp.org.vn/quyet-tam-voi-mang-5g-post730188.html