Telcos continue to invest heavily in 4G


Transition period: A shopkeeper uses a mobile phone in Hanoi. Vietnam began shutting down its 2G mobile communications systems this year. — AFP

HANOI: Telecommunications companies (telcos) in Vietnam are investing in 4G and 5G mobile phone connectivity infrastructure at the same time.

The Information and Communications Ministry (MIC) cited the Groupe Speciale Mobile Association and telecoms equipment maker Ericsson as predicting that 4G will remain the dominant technology with the majority of subscribers at 55% up to 2025.

It will retain this position until 2028, with 50%, and the proportion will gradually decrease when 5G starts to dominate.

Given this scenatio, after auctioning three frequency bands for telcos to deploy 4G and 5G networks, the ministry has continued to allocate the 880MHz to 915MHz and 925MHz to 960MHz frequency bands for the two newer technologies, while the 900Mhz band is licensed for four operators – Vietnamobile, VNPT, Viettel and MobiFone – to run 2G, 3G, and 4G networks.

Information and Communications Minister Nguyen Manh Hung said this year had seen 5G commercialisation nationwide, but operators still have to invest in 4G infrastructure, which will be important for at least the next five years.

Older 4G systems will still dominate from now to 2030, and it is not until at least 2029 that 5G could surpass 4G in terms of data traffic and subscribers, he said.

The 4G coverage of the Viettel Military Industry and Telecommunications Group (Viettel) now reaches more than 95% of the population.

Over the past year, the firm installed 6,000 new 4G base stations, upgraded bandwidth, and increased the capacity of 53,000 other 4G stations, ensuring access to the network for over four million people in remote areas as 2G was shut down.

At present, the number of Viettel’s 4G stations accounts for about 40% of such facilities across Vietnam.

Viettel is aiming to have its 4G coverage equivalent to that of 2G, at about 98% of the population, by 2025.

It plans to build an additional 7,000 new 4G stations in the near future while continuing to promote bandwidth and capacity of existing facilities to improve service quality as subscribers increase.

Nguyen Thi Tam, deputy general director of Viettel Networks Corp, a subsidiary of Viettel, said the firm is simultaneously working on 5G and 4G technologies. Previously, it reduced investment in 3G when developing 4G.

However, Viettel will spend big on 4G as it still has a crucial role to play to counteract network challenges posed by the 2G shutdown in rural areas.

Likewise, the Vietnam Posts and Telecommunications Group (VNPT) will keep investing in 4G alongside commercialising 5G and researching 6G technology.

It hopes to expand the 4G and 5G coverage to 98% of the population by 2025, with a download speed of 40Mbs for 4G and 100Mbs for 5G.

Do Manh Dung, acting director of the individual customers division at VinaPhone, a subsidiary of VNPT, said the group has been striving to expand the 4G network since wider coverage will enable customers to access digital services.

MobiFone Corp is also set to build about 4,000 more 4G base stations next year to enlarge the network.

Nguyen Dinh Dung, deputy head of MobiFone’s telecoms services division, noted the company identified investment in 4G as one of its goals because the 2G network had been shut down, and if customers are unable to access 4G services, they would file complaints or switch to other service providers.

Nguyen Phong Nha, deputy director of MIC’s Authority of Telecommunications, said that as 2G services end and 3G is about to follow the same roadmap, 4G is now the most important telecoms service network for providers. To ensure service quality and meet increasing consumer demand, they must continuously invest in 4G. — Viet Nam News/ANN

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