Amid the rapid advancements in telecommunications technology, Vietnam’s approach to managing simultaneous investments in both 4G and 5G networks provides a thought-provoking scenario. This dual-focused strategy aims to balance current infrastructural needs and future innovations, ensuring customers receive optimal service while preparing for upcoming demands. Despite the ongoing rollout of 5G technology, 4G is expected to remain the dominant network at least until 2028, as it is essential to existing communication frameworks and user satisfaction. The Ministry of Information and Communications (MIC) has taken proactive steps by auctioning frequency bands designated for both 4G and 5G, with particular allocations in the 880-915 MHz and 925-960 MHz bands. These measures underscore the government’s commitment to fostering a versatile and robust telecom environment.
The Critical Role of 4G Infrastructure
Minister Nguyen Manh Hung’s indication that 5G will be commercially available nationwide by 2024 does not overshadow the substantial investments still required in 4G infrastructure. This approach underscores an acknowledgment that the next five years will see 4G continuing to play a vital role in Vietnam’s telecommunication landscape. Firms like Viettel have aggressively expanded their 4G coverage, reaching 95% of the population and setting ambitious goals to stretch this to 98% by 2025. With plans to build 7,000 new 4G base stations while enhancing existing ones, Viettel demonstrates a dual-investment approach that supports both the current and future needs of their network. Their commitment to 4G infrastructure is especially important after the shutdown of the 2G network, positioning 4G as the primary fallback and a crucial network pillar.
Similarly, VNPT has shown relentless dedication to improving both 4G and 5G technologies, with long-term aspirations to even venture into research on 6G. Their balanced strategy aims for comprehensive 4G and 5G coverage reaching 98% of the population by 2025. Targeting download speeds of 40 Mb/s for 4G and 100 Mb/s for 5G, VNPT highlights the caliber and competitiveness essential for future network infrastructure. The focus here is not just on high-speed connectivity but also on ensuring widespread coverage that enables extensive consumer access to digital services. Such broad 4G coverage is essential for maintaining customer satisfaction, particularly during the transition periods where emerging technologies like 5G are still in their nascent stages.
The Strategic Balance of 4G and 5G
Investments in 4G are not limited to major companies like Viettel and VNPT. MobiFone, another significant player in the industry, plans to build around 4,000 new 4G base stations to strengthen its network. Like its counterparts, MobiFone acknowledges the importance of investing in 4G, particularly with the ongoing phase-out of 2G. Providing strong 4G services is essential to avoid customer dissatisfaction and prevent users from switching to other providers. This focus on 4G infrastructure addresses immediate consumer demands while preparing for seamless integration of upcoming technologies.
Nguyen Phong Nha, the Deputy Director of the MIC’s Authority of Telecommunications, underscores the significance of 4G for Vietnamese telecom providers. With the phase-out of 2G and 3G, substantial investments in 4G are necessary to maintain service quality and meet increasing consumer expectations. Continuous 4G infrastructure upgrades are indispensable for providers. Telecom companies face the dual challenge of maintaining and improving their 4G networks while also preparing their 5G infrastructure for future technological and customer needs.
In summary, while 5G promises unprecedented speed and connectivity, 4G will remain essential in Vietnam’s telecom sector for years. Telecom providers must balance the two, ensuring they meet current demands while planning for future innovations. This balanced approach shows a deep understanding of the telecom industry’s complexities and diverse consumer needs.