Starlink services to be available in Vietnam

Nguyen Anh Cuong, deputy director of the Authority of Telecommunications under the Ministry of Science and Technology (MST) made the statement at a media briefing in Hanoi on April 1.

He said that Vietnam was granted a licence for low-orbit satellite internet service to Starlink Services Vietnam, a company owned by billionaire Elon Musk's SpaceX, with a pilot programme accommodating up to 600,000 subscribers and four gateway stations located in Phu Tho, Danang, and Ho Chi Minh City.

Nguyen Anh Cuong, deputy director of the Authority of Telecommunications. Photo: MST

Starlink service for individual users in Vietnam are expected to cost $435 in the first month. This fee includes approximately $350 for the purchase of the terminal equipment and $85 for usage fees.

From the second month onwards, users pay approximately $85, equivalent to about VND2.2 million per month, to maintain their connection.

After Starlink's service was officially licensed by the MST to provide services in Vietnam, some concerns arose about the possibility of this provider lowering prices and directly competing with domestic telecommunications companies.

In response, Cuong said that Starlink Services Vietnam Co., Ltd. has been granted two licences by Vietnam’s Authority of Telecommunications to provide telecommunications services with network infrastructure for the pilot deployment of telecommunications services using low-orbit satellite technology in Vietnam.

According to the licences, Starlink is allowed to deploy in a pilot phase to 600,000 subscribers, equivalent to only about 2.5 per cent of the total number of existing fixed broadband subscribers in Vietnam.

He added that low-orbit satellite services were less likely to compete with the fixed-line, mobile broadband services that Vietnamese businesses were currently providing.

He explained that Starlink, after being licensed to provide telecommunications services in Vietnam, was responsible for fully complying with all legal regulations on price management and competition as with other telecommunications businesses in the market.

"In cases where businesses adjust prices, especially by lowering prices in a way that shows signs of unfair competition, state management agencies will strengthen supervision and apply legal regulations on pricing and competition to handle the situation, maintaining a fair competitive environment, and encouraging the healthy development of the market," Cuong said.

Starlink will be limited to a maximum of 600,000 subscribers during a five-year pilot phase, which must conclude before 2031. This number reflects both management considerations and the technical limitations of Starlink satellite internet.

Starlink commits to completing the system within one year. The setup is not overly complicated, as it mainly involves importing equipment from abroad to Vietnam, and then proceeding with construction and installation at ground station locations.

"If no problems emerge, the deployment time will only be two to three months. In an optimistic scenario, Starlink service could be available from mid-year," Cuong said.

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