Vietnam’s Ministry of Information and Communications (MIC) has reportedly opened the long-awaited 5G spectrum auction to all participants, starting with the 2500-2600MHz band, with more bands expected to follow in the coming days.
The Ministry of Internal Affairs and Communications launched an auction on Thursday, offering 15-year 5G licenses in the 2,500-2,600MHz band for a starting price of VND3.9 trillion (US$158 million), according to Vietnam’s state news agency.
MIC also plans to offer spectrum in two other 5G mid-bands (3700-3800 MHz and 3800-3900 MHz) on March 14 and March 19, respectively. According to the report, the starting price for both bands is VND1.89 trillion.
Ministry of Internal Affairs and Communications Minister Nguyen Manh Hung said the auction was open to “all eligible companies” as well as existing mobile phone companies Viettel, Vinaphone, Vietambile and Mobifone.
However, the report added that other players are unlikely to take advantage of the auction to enter Vietnam’s mobile market as the market is saturated and competitive. Viettel, Vinaphone, Vietambile and Mobifone have all seen their profits shrink in recent years amid intense competition, with core voice and SMS revenues declining.
Between this and the cost of greenfield 5G network infrastructure, estimated to be at least US$1 billion, there is little business incentive for new players to enter the market.
Nguyen Van Son, director of mobile center at Viettel Telecom, told VNA that the business case for 5G is uncertain even for existing carriers as only 17% to 20% of devices in Vietnam support 5G connectivity. told. He also said Viettel plans to focus its 5G deployment in areas with high demand and a high concentration of 5G-enabled devices, such as “industrial zones, export processing zones, and innovation centers.”
According to VNMedia’s October 2023 report, auction winners in the 2,500-2,600 MHz band will be required to deploy at least 3,000 5G stations using the spectrum within two years of obtaining a license. It must also commit to launching commercial 5G services using this band within its first 12 months.
VNA reports that MIC has set a goal of providing 5G coverage to 99% of the population with a minimum data speed of 100 Mbps by 2025.
