VietNamNet Bridge – Telecom companies have kicked off their plan to apply 4G/LTE technology right after they get the license from the Ministry of Information and Communication MIC. However, they have been warned that a lot of things still need to be done to commercialise the service.

In September 2010, MIC granted the license to apply 4G LTE modern technology on the trial basis to five enterprises, namely VNPT, Viettel, FPT Telecom, CMC and VTC. The trial basis will last one year, after which enterprises will have to join bids to obtain the licenses.

VNPT has pioneered the new technology application when it teams up with a Russian company to try LTE in Hanoi in November 2010. Prior to that, in October, VDC, a member of VNPT, completed the installation of the first LTE stations in Hanoi.

To date, two out of the five enterprises which have got licenses to apply LTE technology, which is considered as equivalent to 4G technology, have officially launched the service on the trial basis in Hanoi.

According to the military telecom company Viettel, the mobile service provider has finished installing 40 4G/LTE base transceiver stations to provide services in Hanoi. The company hopes that the services will be available for customers to try in the first quarter of 2011.

Meanwhile, VTC and CMC, the two other telecom groups, have reached an agreement to cooperate in trying the new technology in 2011. Explaining the cooperation, Nguyen Trung Chinh, General Director of CMC Group, said that in order to provide the service, it is necessary to have content services, while VTC has been very keen on this field.

However, insiders believe that VTC and CMC began their cooperation also because of another reason. Together they have higher chances of obtaining a license for 4G application.

As such, Vietnamese companies have begun trying 4G/LTE technology, but they have been warned that a tough road is still ahead. “It is now too early to talk about the success of LTE technology, because the prices of terminal equipments for this technology remain very high, while the popularity remains low,” Chinh said.

Therefore, doubts have been raised whether it is the right time for Vietnamese companies to apply the technology. Should Vietnam allow 4G LTE services at this moment, when 3G network still has not developed?

However, experts believe that it is not too early to grant licenses at this moment, and that the trial period is needed to find out if the technology fits enterprises and the market.

Chinh from CMC said that the company has learned the lesson from the launching of mobile telecom services, and that CMC should not be later than the rivals.

While VNPT and Viettel are holding 90 percent of the telecom service market share, it would be very difficult for other enterprises to join the maket. “I think that the post-3G technology would be successfully commercialised only in 3-5 years. However, in order to be successful, we need to begin preparations right now,” he said.

Sharing the same view, Abdallah Harati, General Director of Nokia Siemens Networks in Vietnam, said that an early start will bring certain advantages. He also said that many rural areas in Vietnam still cannot enjoy telecom services, and that in these areas, the application of wired technologies will be less effective than wireless technologies.

C.V