In March 2024, Vietnam successfully held its first frequency auction, a milestone supporting the nation’s ambitious goal of developing modern, ultra-broadband, widely covered, green, and secure digital infrastructure, with 5G expected to reach 99 percent coverage by 2030 and an average 5G speed of 100 Mbps by 2025.

The auction results saw Viettel securing the 2.5-2.6 GHz band, while VNPT and MobiFone obtained the 3.7-3.8 GHz and 3.8-3.9 GHz bands, respectively.

Responding to the Global Mobile Operators Association (GSMA), Le Van Tuan noted that spectrum costs directly impact the investment in network and, ultimately, service quality.

International studies indicate that when spectrum costs exceed 10 percent of an operator’s annual revenue, investment in the network will decrease, leading to reduced service quality.

Conversely, when spectrum costs are kept below 5 percent, operators continue to invest heavily, resulting in improved service quality.

In practice, the best-performing mobile networks are found in countries where spectrum costs are maintained below 5 percent of annual revenue.

Based on this research, Vietnam adjusted its policy on starting prices, significantly reducing them to ensure operators’ costs remain reasonable.

Following the auction, spectrum costs for Vietnamese operators now account for approximately 6 percent or less of their annual revenue.

Drawing on this experience, Vietnam proposed developing an APT report on spectrum costs to share lessons learned and encourage other countries to adopt a reasonable pricing model.

Asked whether the auction results have been translated into a competitive and rapidly growing 5G market, Tuan affirmed: “We auctioned both the 2.6 GHz and 3.8 GHz bands, rather than limiting to a single band. The unique value of these bands, especially 2.6 GHz, which supports both new 5G deployment and 4G enhancement, created strong competition among operators aiming to secure valuable 100 MHz blocks. Second, to qualify, operators had to commit to deployment obligations, including a specific number of gNodeB and eNodeB base stations (for 2.6 GHz) within the first two years.

These conditions ensure that winning operators are obligated to meet coverage and quality targets. 

Third, spectrum transfers are restricted for the first five years post-auction. This policy prevents speculative bidding and ensures operators genuinely invest in network deployment rather than treating spectrum as a tradable asset.

The auctions concluded with prices considered sustainable, capable of promoting network deployment and growth in the mobile sector.

In the year following 5G deployment, Vietnam significantly climbed Ookla’s mobile internet speed rankings.

Vietnam’s spectrum planning, pricing strategy, and targeted incentive policies offer valuable lessons for other countries seeking to accelerate digital infrastructure development.

This is a core issue at the heart of spectrum policy and management. For industry stakeholders, policymakers, and regulators, finding a reasonable balance in spectrum pricing is critical, as it directly impacts the quality and coverage of mobile networks, playing an essential role in consumer benefits.

Sharing Vietnam’s experience in 5G deployment, Tuan emphasized that achieving a high-speed, widely covered 5G network requires providing operators with access to both mid-band and low-band frequencies.

Operators need at least 100 MHz of mid-band spectrum to deliver high-quality 5G services. To achieve this, Vietnam has developed a clear spectrum roadmap and a plan to reorganize specific radio communication systems. In total, 660 MHz of mid-band spectrum has been made available (90 MHz at 2.3 GHz, 190 MHz at 2.6 GHz, and 380 MHz at 3.8 GHz). Achieving this was no simple task.

Vietnam initially allocated the 2.6 GHz band in an FDD configuration with small 2x20 MHz blocks, similar to most countries. However, with the appearance of 5G, after extensive discussions with stakeholders, Vietnam decided to switch to a TDD configuration with larger block sizes (90-100 MHz) to ensure readiness for 5G. 

Although Vietnam’s 5G commercialization started relatively late compared to other countries in the region and globally, significant progress has been made within just one year of deployment. According to Ookla’s August 2025 report, Vietnam’s average mobile download speed reached 152.17 Mbps, nearly triple the 56.95 Mbps recorded in August 2024. This leap propelled Vietnam to 16th place globally, up 26 ranks. Notably, Viettel ranks among the top three global operators for mobile internet speed, while VNPT holds second place worldwide for 5G download speeds.

Thai Khang