Vietnam to auction 3,700MHz band as part of 5G deployment

Deputy Minister of Information and Communications Nguyen Thanh Lam chaired the press conference on November 6

5G use is divided into three frequency radiowave bands (low, mid, and high). Each band has different capabilities with a variety of coverage and speeds.

Talking to VIR, Le Van Tuan, head of the MIC's Authority of Radio Frequency Management, said the 2,600MHz band will be auctioned in December 2023. Enterprises must provide services no later than 12 months after being licensed. After the 2,600MHz auction, the MIC will soon continue to auction the 3,700MHz band to promote 5G deployment,” he added.

On October 25, the MIC issued a notice to organize an auction of 2,600MHz band oriented for 5G. The general principle of state management is to promote sustainable development of the field. The band auction and licensing of 5G services to network operators also comply with this principle.

According to the plan to organize an auction to use radio frequencies for the 2,500-2,600MHz band for terrestrial mobile communication systems, the duration of the frequency band usage by winning enterprises is up to 15 years.

After two years from the date of being licensed to use the 2,500-2,600MHz band, businesses must commit to deploying at least 3,000 5G broadcasting stations; Commit to providing terrestrial mobile telecommunications services using the 2,500-2,600MHz band by no later than 12 months from the date of being licensed.

In addition, the quality of telecommunications services and roaming telecommunications services must also be guaranteed according to regulations.

The starting price for the auction of the 2,500-2,600MHz band for businesses is determined according to the provisions of Article 18 of Decree 63/2023/ND-CP. The starting price of the 2,500-2,600MHz band block for 15 years of use is over VND3.98 million ($167.93 million).

The deposit applied for the auction of the 2,500-2,600MHz band block is $8.44 million. The collection and handling of deposits is made in accordance with Article 39 of the Law on Asset Auction.

Le Van Tuan, head of the MIC's Authority of Radio Frequency Management

According to estimates, by 2030, mobile businesses in Vietnam will need a total of 1,700-2,200MHz in the 1-7GHz frequency band. After auctioning the 2,600MHz band, the MIC will soon launch the auction of the 3,700 MHz band.

The leader of the Authority of Radio Frequency Management added that deploying 5G was a long journey of 15 years of investment and service development. Good quality service that closely meets customers' needs is the key to retaining customers and preserving a business brand.

In April 2023, the MIC announced bidding documents of businesses for the A1 (2,300 - 2,330MHz), A2 (2,330 - 2,360MHz), A3 (2,360 - 2,390MHz) band blocks with a starting price of nearly $244 million and has usage of 15 years. However, the auctions were unsuccessful as no business submitted documents or paid a deposit.

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