People will have more choices of broadband Internet services.

The pilot policy of controlling the deployment of telecommunications services using low-orbit satellite technology stipulated in Decree 193 dated February 19, 2025 of the National Assembly has just been concretized by the Prime Minister through a decision allowing the 100% foreign-owned SpaceX corporation to deploy investment and provide Starlink satellite Internet service in Vietnam.

SpaceX's Starlink satellite internet service will soon be piloted in Vietnam SpaceX's Starlink satellite internet service will soon be piloted in Vietnam

The pilot telecommunications service business using SpaceX's low-orbit satellite technology will be carried out for 5 years, starting from the date the enterprise established by SpaceX in Vietnam is granted a telecommunications service business license and must end before January 1, 2031.

In addition to specifying the requirements and conditions for the pilot, the Prime Minister's decision also clearly guides: The pilot organization may only carry out telecommunications service business activities after completing investment procedures and procedures for granting telecommunications service business licenses and radio frequency use licenses according to the provisions of law; ensuring compliance with the provisions of the law on telecommunications, radio frequencies, relevant legal provisions and the contents, requirements and conditions for the pilot as prescribed.

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The pilot period for telecommunications services using SpaceX's low-orbit satellite technology in Vietnam will end before January 1, 2031. Photo of a standard Starlink product set: Trong Dat.

SpaceX is also responsible for implementing the proposed contents in the “Starlink Satellite Internet Service Investment and Provision Project in Vietnam” such as: Supporting essential connection programs; cooperating with Vietnamese enterprises to distribute hardware equipment and provide services to users; investing in the supply chain and building ground infrastructure.

Commenting on SpaceX being allowed to pilot low-altitude satellite Internet services in Vietnam, Mr. Vu The Binh, Vice President and General Secretary of the Vietnam Internet Association - VIA, said: "This is a good signal for Vietnam's Internet. From here, we have another broadband option to connect to the Internet, especially in areas without fiber optic cables, remote areas, and islands."

Analyzing more specifically the benefits when SpaceX's Starlink satellite Internet service is piloted in Vietnam, Mr. Vu The Binh said: Vietnam is one of the leading countries in the ASEAN region in terms of the rate of people accessing the Internet, the rate of fixed and mobile broadband.

However, up to now, Vietnam still has many areas without broadband connection, more or less creating a "digital gap" with the rest of the country. According to statistics from the Department of Telecommunications (Ministry of Science and Technology), Vietnam's mobile network has now covered 99.8% of the population; however, it only covers about 58% of the mainland area; 14.5% of the territory if including the sea area. Along with that, there are currently 17% of Vietnamese households that do not use fiber optic services, many of which are in remote areas.

“We believe that with the addition of broadband Internet options from SpaceX’s Starlink low-altitude satellite, the “digital divide” will continue to narrow, creating access to digital services for all areas of the country. People will have more broadband service options, especially in remote and disadvantaged areas that do not yet have fixed broadband services or 4G, 5G,” said Mr. Vu The Binh.

Motivation for domestic carriers to expand coverage

Regarding the story of the influence and impact of the controlled pilot policy of deploying telecommunications services using low-orbit satellite technology on the Vietnamese mobile and fiber optic market, the unit drafting Resolution 193 of the National Assembly assessed: Low-orbit satellite services have lower quality than fiber optic Internet services while having much higher prices, for example, Starlink Internet service currently costs about 6 times more than fiber optic Internet services.

In addition, due to capacity limitations, low-altitude satellite systems are also limited in the number of subscribers they can serve. Satellite services will also mainly target areas and subjects that do not have access to high-speed Internet access services such as remote areas, at sea, and in the air. Therefore, basically, low-altitude satellite services are less likely to compete with fixed and mobile telecommunications services currently provided in Vietnam.

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The presence of more foreign suppliers in the market is expected to create motivation for domestic telecommunications enterprises to continue expanding coverage and improving service quality. Illustration photo: MH

Talking to VietNamNet about this issue, VIA Vice President Vu The Binh commented: Of course, having more advanced service providers like SpaceX will give people more choices, and telecommunications businesses will have more competition.

“However, we all know that the Vietnamese telecommunications service market has been very competitive for decades, so we believe that this does not cause concern for domestic telecommunications service providers. This will probably also be a driving force for domestic telecommunications providers to continue expanding coverage and improving service quality.

In addition, Vietnam's telecommunications and Internet service prices are already very low, while Starlink service subscription prices will certainly be quite high, so we assess that the impact on urban areas is not high, while satellite broadband services will help narrow mobile signal depressions," Mr. Vu The Binh analyzed.

SpaceX's Starlink satellite internet service will soon be piloted in Vietnam. The Prime Minister has issued a decision allowing SpaceX's Starlink satellite internet service to be piloted in Vietnam soon.