According to Nguyen Anh Cuong, Deputy Director General of the Telecommunications Authority, Starlink Services Vietnam has been granted two licenses to pilot satellite-based telecommunications services using low Earth orbit technology. The trial phase will be limited to a maximum of 600,000 subscribers - equivalent to just around 2.5 percent of Vietnam’s current fixed broadband user base.

This limited scale alone suggests that Starlink is not positioned to disrupt the broader market, where domestic providers already dominate.

More importantly, once licensed, Starlink must comply fully with Vietnam’s regulations on pricing and competition, just like any other telecom operator. Authorities have emphasized that pricing practices must remain transparent and fair, with close monitoring to prevent any signs of anti-competitive behavior.

A costly service in a low-cost market

One of the biggest challenges facing Starlink in Vietnam is pricing.

The service is expected to cost around US$85 per month (VND2.2 million), alongside an initial equipment fee of about US$350. In the first year, total expenses could reach roughly US$1,370 (VND34-35 million), with annual costs thereafter remaining at around US$1,020.

These figures stand in stark contrast to Vietnam’s existing internet pricing, which is among the lowest globally.

Typical fiber-optic packages range from VND180,000 to VND500,000 per month (US$7 to US$20), offering speeds from 150 Mbps to 1 Gbps. In direct comparison, Starlink’s monthly fee is about seven to ten times higher than standard fiber services.

This pricing gap significantly limits its appeal to mainstream consumers.

Strong domestic infrastructure limits disruption

Vietnam’s telecom landscape is shaped by extensive infrastructure investments from major players such as Viettel, VNPT and FPT Telecom.

Fiber-optic networks have already reached most urban and many rural areas, while 4G coverage is nearly nationwide and 5G is expanding across major cities.

Mobile data is also widely accessible and affordable, allowing users to stay connected almost anywhere without relying on alternative technologies.

In such an environment, Starlink is unlikely to compete effectively in urban or densely populated areas, where users already enjoy fast, reliable and low-cost connectivity.

A role in underserved and specialized markets

Despite these limitations, Starlink still offers distinct advantages.

Unlike traditional internet services, which depend on ground-based infrastructure, satellite internet transmits data directly from orbiting satellites to user terminals. This makes it particularly useful in locations where deploying fiber networks is impractical or prohibitively expensive.

Remote mountainous regions, sparsely populated areas, offshore operations and maritime environments are among the key use cases where Starlink could prove valuable.

Additionally, the service may serve as a backup solution for businesses. Vietnam has experienced disruptions in international connectivity in the past due to incidents involving undersea cables such as the Asia-America Gateway submarine cable and the Asia Pacific Gateway submarine cable.

In such situations, satellite internet can provide an alternative route to maintain connectivity.

A complementary, not competitive, solution

Ultimately, while Starlink represents a significant technological advancement, its role in Vietnam is likely to remain complementary rather than competitive.

Its higher costs and limited scale make it better suited for niche applications rather than mass-market adoption.

In a country where affordable, high-speed internet is already widely available, satellite services may fill specific gaps - but are unlikely to reshape the broader telecommunications landscape.

Thai Khang