VietNamNet Bridge – Though LTE is believed to be the “technology of the future,” the Ministry of Information and Communication (MIC) has stated that it does not intend to encourage the application of 4G technology in Vietnam right now, in order to ensure the investment efficiency of mobile network operators and ensure the harmonization with the economic development level.

Vietnam a big broadband market

Speaking at Mobile Vietnam 2012, Doan Quang Hoan, Director of the Radio Frequency Department under MIC cited a World Bank’s report as saying, that the broadband development has great impacts on the economic development in every country.

In developed economies, every 10 percent of population have broadband access would bring the 1.21 percent GDP growth rate. Meanwhile, the proportion is 1.38 percent for developing countries.

It is expected that more than 70 percent of broadband subscribers would be wireless broadband subscribers by 2015.

Also according to Hoan, Vietnam is really a special market where most of the wireless technologies of the world are brought there for trial.

Wireless broadband was available in Vietnam very early. In 1993, Vietnam had narrowband provided through GSM 900 MHz. In 2003, the CDMA technology was brought to Vietnam.

As such, broadband radio appeared in Vietnam some 10 years ago, utilized by S-Fone network. In 2005, when Hanoi Telecom used CDMA 2000 1X EVDO, Vietnam had broadband ratio at a higher level.

The Vietnamese telecommunication market has been developing very strongly. However, the market has been controlled by the three biggest ones. The market with 117 million subscribers brings the annual turnover of 5.5 billion dollars.

Wireless information services now make up over five percent of Vietnam’s GDP; a relatively high percentage which is rarely seen in average developed countries.

A report of the Radio Frequency Department has found out the gradual decrease in the number of 2G subscribers since 2011 and the increase of 3G subscribers. There are now 10 3G subscribers for every 100 people.

Vietnam still has the data flow at a low level, about 20 Terabyte, or 20,000 Gigabyte a year, while the global figure is 3.8 Exabyte, equivalent to 3.8 million 1 Terabyte USBs. With the current growth, Vietnam would have 400 Terabyte a year by 2016.

If considering the Vietnamese population, one would see that the 3G data flow in Vietnam remains limited. However, a newly released report by ITU showed that in terms of the ICT Index, Vietnam ranks the 81st in the world, a five grade increase in comparison with the 2010’s ranking.

“I believe that the upgrading has been given to Vietnam by ITU thanks to the development of 3G radio broadband subscribers,” Hoan said.

4G waveband will not be allocated soon

Hoan has predicted that with the market development and technology, the demand for frequencies for broadband services in Vietnam would be very big.

MIC plans to allocated 2.3 GHz and 2.6 GHz for radio broadband, while it would submit to the Prime Minister the plan to invite bids for the frequencies after 2015.

He has affirmed that MIC would not accelerate the licensing of 4G services, in order to ensure the effective investment for enterprises and ensure the harmonization of broadband service development with the economic development.

Vietnam has got ready in terms of the broadband frequency resources to meet the market demand. It is one of the few countries which has the high readiness in potential frequencies for broadband mobile. However, the biggest problem now for mobile network operators is the low average income per subscriber. Meanwhile, experts cannot see high possibility of raising the index because of the limited purchasing demand.

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