Competitive market helps Vietnamese telecommunications among the top in the world
At the press conference of the Ministry of Science and Technology on the morning of September 30, Deputy Director of Telecommunications Nguyen Anh Cuong said that Vietnam's telecommunications is currently in the top, with fixed Internet speed ranked 7th and mobile Internet 10th in the world, according to the latest statistics from Ookla. 4G network covers 99.8% of Vietnam's population, 5G covers more than 90% of the population, while fiber optic cable reaches 100% of communes. The fare is also among the "cheapest in the world".
According to Mr. Cuong, the main reason is that Vietnam has built a healthy, fair and transparent competitive market among telecommunications businesses. The next goal is to create a "more dynamic" competitive environment, optimize invested infrastructure and attract new businesses to participate.
He assessed that the emergence of "new players" - MVNO virtual networks, with new solutions and services, combined with existing telecommunications networks will create more value for users, promoting socio-economic development.
For businesses to participate equally, there must be a clear wholesale mechanism. This has been specified in the Telecommunications Law as well as guiding documents, decrees and circulars.
In fact, the Telecommunications Law 2023 stipulates that businesses with a dominant market position must wholesale, thereby opening up the infrastructure for other businesses to participate in the market. Another principle is "fairness, transparency and non-discrimination".
In 2024, the Ministry of Science and Technology issued Circular 08, providing specific regulations on wholesale activities, clarifying what is fair, transparent, and non-discriminatory in price, as well as related technical and connection standards.
"As a result, we have 7 MVNO enterprises participating in the market," Mr. Cuong said. Participation helps businesses have infrastructure that optimizes network efficiency and adds revenue. Users also have new services and options, promoting a competitive and developing market.
Vietnam currently has four mobile networks that own infrastructure and frequencies, including Viettel, VinaPhone, MobiFone and Vietnamobile. The market also has six virtual mobile networks providing services, including iTel with prefix 087, Wintel with 055, Local with 089, VNSKY with 077, FPT with 0775 and VietnamPost's Pottel. In addition, Galaxy Telecom's SkyFi has been licensed but has not officially operated yet.
Virtual carriers in Vietnam operate under many models. Some are licensed to set up part of the infrastructure, except for the radio network, while the rest do not invest in infrastructure but provide services on other businesses' networks.
Trong Dat