According to the Ministry of Science and Technology, telecommunications infrastructure, from its inception until recently, served as the basic communication infrastructure (calls, messaging). However, it has become the backbone of the economy. Without this infrastructure, it would be like lacking electricity or water.

“Following development trends, telecommunications infrastructure has evolved into digital infrastructure. The concept of digital infrastructure is much broader. There is telecommunications infrastructure on the Internet, and there is digital infrastructure on the internet. Beyond that, there is physical digital infrastructure and, above it, digital utilities," the Minister said.

Vietnam has opened its telecommunications sector for over 20 years, but it remains "stuck" on infrastructure competition, according to Hung. 

Operators compete to have the wider coverage and more stations, but now, instead of competing, it is time to share infrastructure and collaborate to reduce costs and focus on services. Large operators like VNPT and Viettel must be compelled to share infrastructure with smaller ones like MobiFone, he said.

The Minister emphasized the need to promote price competition for services. This has not been sufficiently encouraged, resulting in limited services. Promoting price competition is a strategic shift, with the ultimate goal of serving people. 

Additionally, virtual private networks must be developed. Wholesale capacity should be sold to smaller operators to enable innovation and create services for the public, fostering competition. 

Sharing infrastructure

Over a decade ago, the telecommunications market was bustling with operators racing to launch new services and programs. However, in the past five years, the mobile market has been likened to a calm lake with no ripples. Telecom companies seem to have settled with their existing market share.

Statistics show a growing decline in traditional telecommunications services, so this forces operators to explore "new lands".

5G service has been commercially launched, promising new opportunities for operators. However, it remains at the potential stage and is primarily being used to replace 4G Internet access services.

Currently, Viettel has the largest infrastructure, followed by VNPT, with MobiFone in third place. Currently, the competitiveness of network operators varies, with Viettel holding about 50 percent of the market share in the mobile segment. The remaining 50 percent is mainly divided between VNPT, MobiFone and a small percentage for Vietnamobile.

After numerous market disruptions, MobiFone has faced disadvantages, particularly in infrastructure. If infrastructure sharing occurs, MobiFone could focus on new services, and may introduce services unprecedented in Vietnam by other operators.

Thai Khang