Vietnam’s telecommunications sector recently hit a significant milestone with Viettel, the dominant state-owned military telecom giant, successfully securing a prized segment of the 700 MHz spectrum band. This acquisition, obtained through a competitive auction overseen by the Ministry of Information and Communications, marks a major step forward in Viettel’s plan to broaden its 4G and 5G network footprint across the diverse Vietnamese landscape. Investing around VND 1.95 to 2 trillion (approximately $75 to $78 million USD), Viettel aims to harness the unique properties of this lower-frequency spectrum to maximize both coverage and network efficiency, with a license valid for 15 years. This move positions Viettel to align its infrastructure with global mobile technology standards and brings a promising future of enhanced digital connectivity to Vietnam.
The spectrum purchase goes beyond a typical frequency license—it exemplifies Viettel’s ambition to deliver nearly complete 4G and 5G network access countrywide by 2030, driving cost efficiencies and vastly better user experiences. Examining the multifaceted implications of this acquisition sheds light on Vietnam’s telecom evolution and underscores the extensive technological and socioeconomic effects anticipated for consumers and the industry alike.
Leveraging the Advantages of the 700 MHz Spectrum for Nationwide Network Expansion
The 700 MHz band is often dubbed a “golden” or “diamond” frequency due to its exceptional physical characteristics. Unlike higher-frequency bands, lower-frequency waves like those in the 700 MHz spectrum can travel much farther and penetrate buildings and obstacles more effectively. Technical studies showcase that 700 MHz coverage can reach approximately 1.8 times the radius of the comparable 1,800 MHz band, allowing for a broader area of reliable signal reception.
For a country like Vietnam—with its mix of mountainous regions, densely populated urban centers, and rural expanses—this capability is a game-changer. Implementing 700 MHz spectrum enables Viettel to extend its 4G and 5G networks into previously hard-to-cover or underserved areas with significantly fewer cell towers. This reduction in infrastructure promises substantial savings in deployment costs, measured in billions of Vietnamese dong, compared to relying solely on higher-frequency bands. As a result, the enhanced propagation qualities of the 700 MHz spectrum are pivotal to Viettel’s ambitious target of achieving 99% population coverage by 2030, a crucial step toward bridging digital divides and fostering inclusive connectivity across Vietnam.
Strategic Positioning and Industry Impact of Viettel’s Spectrum Acquisition
The fiercely contested auction for this spectrum block revealed its high strategic value, with Viettel facing strong competition from other state enterprises like the Vietnam Posts and Telecommunications Group (VNPT). Viettel’s eventual victory was not just a testament to its financial muscle but also its strategic focus on bolstering its network infrastructure to stay ahead in the fiercely competitive Vietnamese telecom market.
Major General Tao Duc Thang, Viettel’s CEO, highlighted that the final purchase price aligns with global averages for prime spectrum blocks, reflecting both its commercial value and technological utility. By controlling this spectrum, Viettel is now better equipped to provide premium 5G services, capitalizing on the band’s dual strengths in wide-area and indoor coverage. This complements previous spectrum acquisitions in higher frequency bands such as 2,500–2,600 MHz, where Viettel also secured rights to facilitate the rollout of standalone 5G networks—networks that do not rely on existing 4G infrastructure and offer much greater performance.
Beyond Viettel’s individual ambitions, this progress has sector-wide ramifications. Accelerating nationwide high-speed mobile broadband availability fosters innovation in critical sectors like smart cities, Industry 4.0, telehealth, and remote education. The spectrum acquisition aligns with the Vietnamese government’s policy to develop a robust, modern telecom foundation led by state actors balancing commercial success and social objectives. The 700 MHz license thus stands as a keystone in Vietnam’s fast-evolving digital transformation journey.
Economic and Social Consequences of Viettel’s Investment
Viettel’s spectrum acquisition is embedded in a broader narrative of being a key economic driver in Vietnam. The company reported a notable 27% year-on-year increase in quarterly net revenues, with profits scaling into hundreds of billions of VND. Its robust financial performance translates into significant fiscal contributions, including tax and fee payments exceeding 42 trillion VND annually, underlining its importance to the state’s revenue stream.
Beyond numbers, Viettel plays an active role in national welfare and social responsibility. In 2024 alone, the company allocated more than 530 billion VND toward programs spanning education, healthcare, poverty alleviation, and disaster relief, demonstrating a commitment to uplifting communities while expanding its business reach. The modernization afforded by the 700 MHz band acquisition is poised to invigorate Vietnam’s digital economy, create jobs, and enable new business models reliant on reliable, high-capacity mobile networks.
In summary, Viettel’s successful acquisition of the 700 MHz spectrum license represents a watershed moment both for the company’s evolution and Vietnam’s telecommunications sector as a whole. The distinct propagation characteristics of this frequency band empower Viettel to significantly enhance its coverage and network quality for 4G and 5G users nationwide. Strategically, this acquisition cements Viettel’s market leadership and aligns perfectly with government ambitions to accelerate digitalization and economic modernization. With an eye towards achieving near-universal mobile connectivity by 2030, Viettel’s investment heralds a new era of technological progress, economic growth, and digital inclusion across Vietnam.
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