Telecom companies in Vietnam are engaging in a heated bidding competition for the rights to utilize the coveted 5G frequency bands. The official designation for one of these bands, known as B1, kicked off with a starting price of 3.9 trillion VND (approximately 158 million USD).
The event marked a significant milestone in the nation’s telecom sector and the journey towards commercializing 5G technology, according to Deputy Minister of Information and Communications Nguyen Huy Dung. Minister Nguyen Manh Hung emphasized the ministry’s commitment to an open 5G policy, allowing all eligible enterprises to participate in the auction, not just established mobile network providers offering new 5G services.
While the auction is technically open to any company, industry experts predict that the winners are likely to be existing mobile service providers due to the substantial investment required for new players to enter the 5G market. Estimates suggest that new entrants may need to invest up to 1 billion USD in network infrastructure to leverage 5G technologies effectively.
Telecom companies in Vietnam have faced declining profits in recent years due to intensified market competition, posing a challenge for potential newcomers. Minister Hung highlighted the significance of 5G technology by citing the success of China Mobile, which reported over 10% growth in annual revenue following substantial investments in 5G development and specialized applications.
As part of its national 5G rollout strategy, Vietnam aims to achieve 99% coverage with 5G technology by 2025, providing high-speed connectivity to the majority of the population. Industry representatives, such as Ericsson Vietnam, view 5G as a transformative digital infrastructure that could revolutionize connectivity between people, machines, and industrial processes.
Viettel Telecom’s Mobile Centre Director, Nguyen Van Son, noted the limited availability of 5G-compatible devices, urging strategic deployment in areas with high demand and ample 5G device penetration. The forthcoming 5G bands, C2 and C3, are set to go up for auction in March, further fueling the race to harness the potential of 5G technology in Vietnam.
