Why 5G becomes a golden key for Vietnam to develop and what challenges will businesses like Viettel, MobiFone and Vinaphone face?

Last year, the Government issued Resolution 52 which outlined guidelines and policies to actively participate in the 4th industrial revolution.

The strategy also aims to provide affordable, nationwide 5G network coverage by 2030, according to the release.

To realize this vision, Vietnam has plans to test 5G mobile networks in major urban centers like Hanoi and Ho Chi Minh City. Ho Chi Minh.

Accordingly, the authorities issued the first license to test 5G for Viettel, Vietnam’s largest network with more than 60 million subscribers on a total population of nearly 100 million people. Viettel has tested 5G in Hanoi and Ho Chi Minh City. Ho Chi Minh City in May 2019, other tests will soon be completed.

In April 2019, Viettel said that it had tried to connect 5G stations in Hanoi with the connection speed ranging from 600 – 700 Mbps, equivalent to the speed provided to customers of 5G Verizon network (USA). ).

Other carriers including MobiFone and Vinaphone are also expected to launch their own 5G networks next year. MobiFone has received the license to become the second network operator to conduct 5G network testing.

Notably, Viettel has announced that it has developed its own core technology for 5G technology, including chipsets and devices. The group says the goal is to produce 80% of the core network infrastructure needed for 5G this year. The rest will come from outside vendors.

Many of the world’s leading technology corporations have expressed interest in working closely with governments, carriers and private businesses to help Vietnam comply with its plan and commercialize technology in the year. now on.

5G technology will bring a new economy, helping the country create a series of new products for smart cities, the Telecommunications Department (VNTA) of the Ministry of Information and Communications (MIC) said.

In the first phase of 5G technology, many Vietnamese businesses will focus resources on the production of 5G chipset processors. This is considered the heart of 5G technology.

Despite taking proactive steps in deploying 5G networks, analysts said the road ahead for Vietnamese carriers was challenging and opportunistic.

The number of 5G subscribers in Vietnam is expected to reach 6.3 million by 2025, according to the 5G development report published in October.

By deploying 5G services, Vietnamese telecom companies can increase revenue by up to US $ 300 million per year from 2025.

However, Vietnamese mobile service providers will have to invest about US $ 1.5-2.5 billion in infrastructure development from 2020 to 2025 to deploy and operate 5G services.

The report suggested that Vietnam and Southeast Asian countries need to address the release of slow frequency spectrum for 5G services while carriers need to introduce 5G services at an affordable price to encourage users to switch to 5G. use.

Viettel chairman said that when 5G technology starts to boom, Viettel will need its own 5G equipment. Therefore, the team must find a way to successfully develop 5G technology.

More importantly, all 5G hardware and software products will be researched and produced by Viettel in Vietnam to ensure information security.

Determining the production of 5G chipsets is extremely difficult and expensive, the Deputy Minister of Information and Communications said the ministry wants to establish a community of businesses and experts to share the experience of manufacturing 5G chipsets in Vietnam in the future. near the.

[ Æsir Tales ]
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