Waiting for 5G commercialization

Vietnam has tested 5G technology in 55 provinces and cities across the country. Currently, two network operators, Viettel and VNPT-VinaPhone, have successfully auctioned to exploit the 5G spectrum. Businesses and users are eagerly awaiting the commercialization and development of 5G.

Aim for concentrated areas

Since 2020, Vietnam has been one of the first countries in Southeast Asia to pilot 5G applications. By 2022, many users have experienced 5G technology on smartphones. However, the target of 5G is only concentrated areas.

Viettel has conducted many experiments to apply 5G technology in daily life. Photo: TAN BA

Typically, Viettel successfully tested the 5G Private Mobile Network (5G PMN) service for the Pegatron factory in Hai Phong City, showing the development direction of this technology. This is a smart factory, automated based on the connection of 5G mobile service with the advantage of high speed and low latency. 5G PMN connects applications such as augmented reality for video calls on Public Cloud (public cloud computing); applications for production lines (Assembly Station); product testing management; direct monitoring of the production process... helping the Pegatron factory reduce costs, increase productivity, increase profits, and control processes well thanks to real-time data collection.

5G applications in a concentrated area have been exploited by many tourist areas, industrial parks, and urban areas around the world, creating the necessary infrastructure for Big Data, allowing all objects to be connected to the Internet. From here, management is extremely easy and the management unit can receive alarms from many points in real time. Experts say that 5G PMN is a fast-growing trend in the world, especially effective for businesses with factories, warehouses, ports, airports, etc. that require secure and reliable connectivity.

In Vietnam, the system of industrial parks, seaports, airports, and logistics centers is present in most provinces and economic zones in the country, so the application of 5G PMN is expected to strongly promote the development of the economy in general. "For VNPT-VinaPhone, deploying 5G technology will be an opportunity to increase revenue and bring new products and services to the market to change the existing experience for users. In the long term, 5G will open up the business space between businesses and businesses (B2B)", Mr. Nguyen Quoc Khanh, Deputy Head of Technology Department, VNPT Group, shared.

Individuals still have needs

Information at the conference "5G Beyond Growth - Breakthrough growth with 5G" held in February 2024 showed that more than 20% of global 5G network operators have applied the Frequency-based Pricing model to develop individual 5G subscribers. In Thailand, with the additional utility for mobile users being the 5G acceleration mode, allowing subscribers to choose different speed levels to best meet their usage needs, helping network operators increase ARPU (Average Revenue Per User) by about 23%.

By the end of 2023, more than 300 commercial 5G networks have been deployed around the world. After 5 years of commercialization since 2019, there are more than 1.5 billion users using 5G worldwide, while it took 9 years for 4G to make this a reality.

However, in Vietnam, up to now, Viettel and VNPT-VinaPhone still have no information about developing 5G subscriptions for individual users, despite testing at outstanding speeds.

Mr. Doan Quang Hoan, Vice President and General Secretary of the Vietnam Radio and Electronics Association, said: “Compared to countries that have commercially deployed 5G, Vietnam may be a bit slow. In the Southeast Asian region, some countries such as Thailand, Singapore, the Philippines, Malaysia, etc. have deployed 5G. If compared to the requirements for applications, terminal equipment prices and economic efficiency, Vietnam has many opportunities to promote 5G”. A telecommunications expert also commented: “The immediate opportunity is that network operators should focus on 4 factors: high-quality networks, multi-dimensional business, emerging services and artificial intelligence to seize opportunities when developing 5G”.

If with 2G, 3G and 4G networks, customers are mainly individual users (B2C model), with 5G, customers are mainly businesses (B2B model). Therefore, to develop individual subscribers, network operators need to have new products and services based on 5G technology to meet the diverse needs of society. And thus, the value of exploiting 5G is expanded through creative and potential usage options.

“5G will be an important infrastructure platform to accelerate Vietnam’s digital transformation. In the initial phase, 5G will enable service providers in Vietnam to provide enhanced mobile broadband experiences to users as well as increase the capacity of network systems to manage increasing data traffic and over time, 5G will be well exploited for smart businesses,” Ms. Rita Mokbel, Director of Ericsson Vietnam, emphasized.

KIM THANH

Source: https://www.sggp.org.vn/cho-thuong-mai-hoa-5g-post737984.html