April 19 was the last day that AOT received registrations for the auction. 

According to the Authority of Radio Frequency Management, A1 (2300 – 2330 Mhz), A2 (2330 – 2360 Mhz) and A3 (2360 – 2390 Mhz) wavebands have a starting price of VND5.798 trillion and usage time of 15 years. 

Three companies will receive licenses to use wavebands for 4G and 5G.

Currently, Vietnam has five mobile networks with operational infrastructure, namely Viettel, VNPT, MobiFone, Gtel and Vietnamobile. As such, two network operators will not get licenses. 

Analysts say that in the race, the three largest network operators have advantages over the other two. However, the companies that will win the auction remain a secret.

Other telcos also have the right to attend the auction, if they can satisfy the requirements. As such, new players may appear in the market and join the 4G/5G battle.

However, analysts believe that with current conditions, the market will likely not see newcomers. This is not only the problem of Vietnam’s mobile telecommunication, but also network operators all over the globe.

The question is what mobile network operators will do when traditional services such as voice call and SMS shrink, and the new services cannot offset the decrease in traditional services.

Under the digital infrastructure development strategy, Vietnam targets being among the top 30 in the world prior to 2025. 

If so, businesses in Vietnam would have modern digital infrastructure to develop the digital economy. 

Also, Vietnam plans to have 100 percent of people using smartphones by 2023. The Ministry of Information and Communications (MIC) has decided that Vietnam needs to keep up with the rest of the world and take proactive steps in deploying 5G commercialization in Vietnam.

Denis Brunetti, president of Ericsson Vietnam, Myanmar, Cambodia and Laos, said 5G plays a fundamental role in the digital infrastructure in the digital economy. 

It supports the application of new technologies in many important business fields such as transport, energy, agriculture and healthcare.

Ericsson predicted that two thirds of multinationals would set up production bases in Asia Pacific by 2025, which would be a great opportunity for Vietnam. If Vietnam is ready with digital infrastructure based on 5G technology, it will have good conditions to attract foreign investment. This, plus membership in many free trade agreements (FTAs) will give Vietnam important advantages.

He said he can see the strong commitments by the Vietnamese government in deploying 5G by allowing three network operators to commercially try 5G.

Thai Khang