INDUSTRIES

5G to be officially commercialised early next year

In addition to deploying 5G band licences, Việt Nam also produces 5G telecommunications equipment.

306419 thunghiem5ghnoi271120 | FDI Việt Nam
To be able to auction frequencies soon, MIC has removed legal problems. — Photo baotintuc.vn

HÀ NỘI — The Ministry of Information and Communications (MIC) will auction 5G frequencies in November and license 5G by the end of this year.

To deploy 5G commercialisation, MIC will have to conduct a frequency auction according to regulations, Phạm Đức Long, Deputy Minister of Information and Communications, told Tin tức (News) newspaper.

To be able to auction frequencies soon, MIC has resolved legal problems. “We have not been able to do that from 2019 until now, and had to wait for the revised Law on Radio Frequency to take effect 1 July this year”, said Long.

Following this, the ministry developed Decree 63 on organisation of frequency auctions. According to the roadmap, there would be a frequency auction in November this year, he added.

The auction must comply with the State’s procedures. It is expected that after the auction in November, the Ministry of Information and Communications will license 5G frequencies this year so that it can be launched next year.

In addition to deploying 5G band licences, Việt Nam also produces 5G telecommunications equipment.

Recently, the ministry signed a decision to organise the determination of fees for frequency bands to activate the auction process for granting frequency use rights for 4G and 5G.

Accordingly, the bands 700 MHz (703-733 MHz and 758-788 MHz), 2600 MHz (2500-2600 MHz), and 3700 MHz (3560-4000 MHz) will be auctioned.

The MIC’s Authority of Radio Frequency Management believes that this is the first step in activating the auction process to grant the right to use these frequency bands for 4G and 5G in the country.

To deploy 5G, network operators require resources to reinvest in the network.

However, the reality is that the resources of current network operators worldwide and in Việt Nam are increasingly limited. Traditional telecommunications services such as voice and text messaging (SMS) have seen a sharp decline due to the rise of OTT and new digital services.

Simultaneously, the country’s mobile telecommunications service prices are consistently decreasing and rank among the cheapest globally.

These fees are too low for network operators to have the necessary resources to reinvest in the network. If the network is not periodically reinvested in, there will eventually be a compromise in its quality, he warned.

In a context where all network operators are looking to invest in 5G, without adequate resources, it would prove very challenging, the deputy minister said.

Theo Vietnamnews