5G infrastructure receiving push due to bespoke policies

Major network operators in Vietnam are gearing up development of 5G base transceiver stations to get the latest state financial support.

5G networks will account for about half of total mobile subscribers in Vietnam by the end of this decade, Photo: Shutterstock

Telecommunications businesses that rapidly deploy 5G network infrastructure and reach at least 20,000 5G broadcasting stations by the end of 2025 can get 15 per cent support of the average equipment cost for a broadcasting station. The support comes from the state budget. This is part of a number of special policies being piloted to create breakthroughs in science, technology, innovation, and also digital transformation.

An official of the Ministry of Science and Technology said, “This is a very special policy. The country needs to quickly create a nationwide telecommunications network, but businesses are somewhat cautious and have only developed about 5,000 stations each year. Therefore, if we want to ensure development of at least 20,000 5G stations to cover the whole country, the government will support them.”

The network operators are quickening their efforts in this regard. In late March, MobiFone officially began providing commercial 5G services in Vietnam, making it the third network operator in the country to do this after Viettel and VNPT.

In the first phase, the MobiFone 5G network is being deployed in central areas of major provinces and cities. Its network simultaneously deploys both standalone and non-standalone architecture platforms, helping it take advantage of current 4G infrastructure and be ready for standalone 5G in the future.

For business customers, MobiFone has announced and launched over 100 products, covering eight key areas of national digital transformation priority: industrial production, smart cities, energy, agriculture, healthcare, education, transportation, and also for smart tourism.

Meanwhile, Viettel currently has more than 6,500 5G base transceiver stations, covering all provinces as well as cities, industrial parks, tourist areas, seaports, airports, hospitals, and universities. Its 5G network can reach speeds of 700Mbps or 1Gb, 10 times faster than 4G, and has a latency of almost zero.

Meanwhile, Viettel’s 5G non-standalone network has a speed 20 times faster than traditional 4G, helping it provide services that require instant response such as self-driving cars, remote surgery, remote control in smart factories, VR classrooms, and others.

Viettel’s 5G subscriber numbers reached 5.5 million just five months after its launch, moving closer to the target of 10 million 5G subscribers by the end of the year.

VNPT also announced coverage to all provinces and all 705 administrative units at district and county levels, as well as industrial areas, airports, and political centres. At present, the group has about three million subscribers using 5G.

The local 5G market is enticing to major international players. In late 2024, Ericsson signed 5G deals with the three Vietnamese operators, and Nokia also inked a major new deal with Viettel to deploy 5G equipment for the first time nationwide.

Technology expert Tien Hoang explained, “The move, together with the government’s recent major strategies on technology development and digital transformation, is a driving force for the network operators. While the 15 per cent is decent support, 5G infrastructure investment will remain a massive challenge.”

According to a recent Ericsson study, 5G networks will account for about half of total mobile subscribers in Vietnam by 2030. Currently, more than one-quarter of national data traffic is transmitted via 5G, making this technology an important driving force for the digital economy.

As cited by the Global Telecommunication Association, 5G will bring more than $930 billion to the global economy by 2030. The benefits of 5G will focus on several key industries such as industrial production, public administration, services, ICT, and finance.

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