Page 133 - SAMENA Trends - Jan-Mar 2024

REGULATORY & POLICY UPDATES SAMENA TRENDS

Viettel Group announced it has officially won the must also commit to launching commercial 5G services
Ministry of Information and Communications’ auction using the band within the first 12 months. VNA reports
for the 2500-2600 MHz band for 5G usage in Vietnam. that the MIC has set a target to provide 5G coverage
Under the new spectrum license, Viettel will have rights to 99% of the population by 2025, with minimum data
Vietnam to the 2500-2600 MHz band for the next 15 years, and speeds of 100 Mbps. (March 18, 2024) www.developingtelecoms.com
can use the band for both 4G and 5G services. No
financial details were disclosed, although earlier media The Ministry of Information and Communications
reports have said the starting price for the 2500-2600 has reportedly urged the country’s telcos to find new
MHz band was VND3.9 trillion (US$158 million). The growth opportunities in digital as the sector’s growth
MIC kicked off an auction for the 3700-3800 MHz band continued to slow down in 2023. According to the
on Thursday, and is expected to hold a third auction for Vietnam Economic Times, Minister of Information
the 3800-3900 MHz on March 19. The starting price and Communications Nguyen Mạnh Hung said in an
for both of those bands is VND1.89 trillion. According interview that the growth of telecoms operators has
to VNEconomy, each bidder is only allowed to win one not kept pace overall with the country’s GDP growth.
band. Viettel said the 2500-2600 MHz band would While Vietnam’s GDP growth in 2023 was just over
give it an advantage over the other two bands, as it 5% – missing government targets and down from 8%
offers slightly wider coverage. Viettel also said that the previous year – Hung said that Viettel’s domestic
5G devices it has researched and produced support telecoms business increased by 2-5% in the last few
the 2500-2600 MHz band. According to Viettel, only years, while VNPT has only seen 2-3% growth, and
17% to 20% of devices in Vietnam currently support 5G MobiFone 4-10%. Hung said that he expects telcos to
connectivity. Viettel said it plans to launch the national be growing their businesses between 5% and 10% per
5G network “in the shortest possible time.” Earlier, year. Hung claimed the sluggish growth was due to a
Nguyen Van Son, director of Viettel Telecom's Mobile saturated telecoms market with core voice and SMS
Centre, told the state Vietnam News Agency that Viettel revenues being cannibalized by OTT services, while
plans to focus its 5G deployments in locations where telcos have not yet found a suitable growth business
there is both high demand and a high concentration to replace those revenue streams. The minister urged
of 5G-compatible devices, such as “industrial zones, telcos and digital technology businesses to throw
export processing zones and innovation centers.” An their R&D efforts into developing digital applications
October 2023 report from VNMedia said that the 2500- for industries, which would also count under the
2600 MHz auction winner will be required to deploy at government’s “Make-in-Vietnam” policy.
least 3,000 5G broadcasting stations using the band (January 29, 2024) www.developingtelecoms.com
within two years after they receive the license. They

The Postal and Telecommunications Regulatory Starlink has not submitted its application for the
Authority of Zimbabwe (POTRAZ) says internet service license. We are waiting to hear from it and once it
provider Starlink has not applied for an operating submits Potraz will do what is required. A Chinese
license. Over the past several months, some individuals mining company operating in Mashonaland Central
Zimbabwe and companies have been advertising Starlink Internet Province, San He, was recently fined US$700 for using
services but POTRAZ warned that those caught
Starlink in Zimbabwe. According to the National
distributing and advertising Starlink Internet Services’ Prosecuting Authority of Zimbabwe (NPA), the San He
gadgets will be arrested. Many have already installed Mining company in Guruve was ordered to pay a
Starlink internet gadgets which provide cheap and US$700 fine by a Bindura Magistrate for contravening
fast-speed internet. POTRAZ deputy director of the Postal and Telecommunication Act. Zimbabweans
economic tariffs and competition Vengesai Magadzire are increasingly eager to ditch local internet service
said the nation should know that Starlink is yet to providers for Starlink due to their poor service and high
submit its application papers. Magadzire was cost of data packages. Developed by Elon Musk’s
addressing villagers in Chikomba West constituency space exploration company SpaceX, Starlink is a
during a consumer awareness campaign at the satellite internet network that provides high-speed
weekend. He said: As the regulator, POTRAZ is broadband internet services.
mandated to license operators in Zimbabwe but now (February 26, 2024) www.pindula.co.zw

133 JANUARY-MARCH 2024