Mr. Pham Duc Long, Deputy Minister of Information and Communications, said that in order to commercialize 5G, the Ministry of Information and Communications will have to conduct frequency auctions according to regulations. “To be able to auction frequencies early, the Ministry of Information and Communications must remove legal obstacles. From 2019 to now, we have not been able to do so and have to wait for the revised Frequency Law to take effect from July 1, 2023. After that, the Ministry of Information and Communications has developed Decree 63 to organize and calculate the frequency auction level. According to the roadmap, the frequency auction will be in November 2023,” said Deputy Minister Pham Duc Long.
Vinaphone network officially tested commercial 5G in Hoan Kiem Lake area, Hanoi . Photo: TL
The auction must comply with the State's procedures. It is expected that after the auction in November 2023, the Ministry of Information and Communications will license 5G frequencies in 2023 so that 5G can be launched in 2024. In addition to implementing 5G frequency licensing, Vietnam also produces 5G telecommunications equipment. Recently, the Ministry of Information and Communications signed a decision on organizing the determination of collection levels for frequency bands to activate the auction process for granting frequency usage rights for 4G and 5G. Accordingly, the frequency bands 700 MHz (703-733 MHz and 758-788 MHz), 2600 MHz (2500-2600 MHz), 3700 MHz (3560-4000 MHz) will be auctioned. The Radio Frequency Department (Ministry of Information and Communications) said that this is the first step to activate the auction process to grant the right to use these frequency bands for 4G and 5G in Vietnam. To deploy 5G, network operators need resources to reinvest in the network. Meanwhile, the reality is that the resources of current network operators in the world and Vietnam are increasingly limited because traditional telecommunications services such as voice and text messaging (SMS) are being sharply narrowed due to the development of OTT services and new digital services.
At the same time, Vietnam's mobile telecommunications service prices are always decreasing and are among the cheapest in the world. Deputy Minister of Information and Communications Pham Duc Long said: "Vietnam's mobile prices are always decreasing and decreasing to the point where they cannot be reduced any further. Vietnam's mobile data rates are the cheapest. The world's average data rate is 0.36 USD, Vietnam's is 0.16 USD per Gigabyte (GB) of data. This rate is too low for network operators to have the resources to reinvest in the network, and at some point if the network is not reinvested, they will have to pay the price in terms of quality. In the context that network operators are all in need of investment in 5G, without resources, it will be very difficult."
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