Vietnam has granted a license for low-Earth orbit satellite Internet services to Starlink Services Vietnam, a unit of SpaceX, with a pilot scale of up to 600,000 subscribers. The company is allowed to deploy four gateway stations in Phu Tho, Da Nang, and HCMC, directly connecting satellites with terrestrial Internet infrastructure.

Entering Vietnam helps Starlink extend its presence in Southeast Asia, following launches in the Philippines, Malaysia, Indonesia, and Timor-Leste. However, competitive challenges are evident from the outset.

Sources told VietNamNet that the expected monthly fee for Starlink is very high, raising questions about competitiveness of Starlink’s services compared to fiber-optic Internet and mobile networks, which are highly affordable in Vietnam.

Starlink is a satellite Internet system developed by SpaceX, operating through a network of thousands of low-Earth orbit (LEO) satellites.

Unlike traditional Internet services that rely on fiber-optic cables or terrestrial network infrastructure, Starlink transmits signals directly from satellites to user terminals.

To use the service, customers need to purchase a hardware kit that includes a satellite dish, a Wi-Fi router, and a power supply unit. Based on expected pricing for the Vietnamese market, the equipment costs about $350, equivalent to roughly VND9 million.

In addition to the upfront hardware cost, users must pay a monthly fee of $85 (around VND2.2 million) to maintain the service.

In the first year, total costs include $350 for equipment and $1,020 in subscription fees. This brings the total to $1,370, or around VND34–35 million for the first year.

From the second year onward, users only need to pay the annual subscription fee of about $1,020 (around VND26 million).

In direct comparison, Starlink’s monthly fee of VND2.2 million is about 7 to 10 times higher than fiber-optic Internet services.

This pricing shows that satellite Internet remains relatively expensive compared to average income levels and telecom service costs in Vietnam.

Doan Quang Hoan, Vice President of the Radio and Electronics Association of Vietnam, noted that Vietnam has strong terrestrial telecom infrastructure in both coverage and quality, leaving almost no room for satellite Internet in the mass consumer segment.

According to the Authority of Telecommunications, by April 2025, the country had deployed over 318,000 BTS, covering 99.8 percent of the population with mobile broadband. 5G coverage alone reached 25.5 percent of the population after less than a year of commercialization.

In the fixed Internet segment, Vietnam has 24.4 million subscribers with an average speed of 176.68 Mbps, ranking 33rd out of 155 globally. Notably, 85.1 percent of households use fiber optics, with infrastructure reaching every commune and ward nationwide. In this context, Starlink lacks the advantages in cost and convenience  to compete with traditional services.

Starlink "filling the gaps" rather than replacing infrastructure

According to Hoan, the biggest disadvantage of satellite Internet lies not only in high monthly fees but also in terminal equipment costs and complex installation. Users must install satellite dishes and peripheral gear, making the total cost far exceed terrestrial services.

Consequently, Starlink is unlikely to become a mass broadband provider or exert competitive pressure on existing telcos. Instead, its role is viewed as a strategic supplement.

Firstly, the service is particularly useful in hard-to-reach areas such as remote regions and islands, where laying fiber-optic cables is expensive or economically unfeasible. This is the "gap" that traditional infrastructure cannot yet fill.

Secondly, Starlink serves as backup infrastructure for the cases of natural disasters or large-scale network failures. When terrestrial systems are disrupted, satellite connectivity ensures communication remains unbroken.

In terms of applications, Starlink suits specialized sectors such as search and rescue, defense and security, remote education, and maritime industries (shipping, offshore fishing, and oil and gas). Businesses in isolated areas, such as mining, forestry, small hydropower, and trans-mountain transport infrastructure, are potential customers.

Another segment capable of accepting Starlink's high pricing includes premium services like isolated resorts, yachts, or users requiring independent, stable international connectivity.

Overall, Starlink is not entering Vietnam to compete head-on with telecom operators, but to target niche markets where traditional infrastructure remains limited or inefficient.

While the scale may be modest, these areas are strategically important for infrastructure security, maritime economic development, and national connectivity.

In this landscape, Starlink may not trigger a market share battle, but it can still play a meaningful role as a complementary layer, helping build a more flexible and resilient telecom ecosystem.

Thai Khang