The MIC sets the starting auction price for the 2500-2600 MHz frequency band at VND3.98 trillion (US$161.87 million).

The deposit at the auction for this frequency band block is VND200 billion ($8.13 million). The auction winner can use this block for 15 years.

In two years from the date to receive the use permit of the frequency band, the winning business must commit to launching at least 3,000 5G broadcasting stations exploiting the 2500-2600 MHz frequency bands.

It must also guarantee to offer terrestrial mobile telecommunications services using the 2500-2600 MHz frequency bands no later than 12 months from the date to receive the use permit of these bands.

In February 2023, the MIC publicized the plan to organize an auction for the right to use the 2300MHz band. Four telecom that carriers submitted dossiers, VNPT, Viettel, MobiFone and Vietnamobile, received MIC’s certificates to be eligible to attend the auction.

On May 15, 25 and June 2, 2023, MIC organized auctions for the 2300MHz frequency band, including three frequency band blocks A1 (2300-2330 MHz), A2 (2330-2360 MHz), A3 (2360-2390 MHz). 

However, no business submitted a dossier or deposit in advance to register to attend the auction. The auctions planned for A1, A2 and A3 blocks failed.

Previously, the frequency licensing was granted by state management agencies to telecom carriers. Later, the carriers had to attend exams to obtain frequencies. In other words, frequencies were granted for free to carriers, which only had to pay frequency fees annually per the regulation of the Ministry of Finance (MOF). 

Nevertheless, since the Law on Radio Frequency took effect and mobile network operators wanted to have good wavebands to provide high-quality services to clients, they have to obtain wavebands through auctions.

According to ARFM, the starting price for frequencies 2300-2400 MHz for three waveband blocks is VND17.394 trillion.

A1 (2300 – 2330 Mhz), A2 (2330 – 2360 Mhz), and A3 (2360 – 2390 Mhz) all have the starting price of VND5.798 trillion and usage duration of 15 years. So, in theory, telecom carriers would have to pay VND386 billion a year in fees, a relatively high figure for all mobile networks. To be able to provide services, they will have to spend more money for infrastructure and business models.

Vietnam has 126 mobile subscribers, and the market is getting saturated. A report shows that 800,000 new subscribers join the market every year. MIC has allowed telcos to try 5G in 40 cities or provinces.

Thai Khang