Vietnam is preparing to apply 4G (fourth-generation network) technology
from 2015. However, industry insiders said the country should be in no
rush to make the switch, as moving to 4G would involve significant
investment in infrastructure and require end users to buy new mobile
phones.
Huawei Vietnam’s General Director Yuan Song said that 3G
was only introduced in Vietnam in 2009 and was still in the fast growth
stage.
Thieu Phuong Nam, General Director of Qualcomm in Vietnam,
Laos and Cambodia, pointed out that while the world was converting to
4G, Vietnam’s 3G market share was still on the rise and therefore the
country should not be in a hurry to upgrade.
Vietnam had fewer 3G users than developed nations, where 70-80 percent of mobile phone owners used 3G, he said.
Pointing
out that Vietnam’s service fees were the lowest in the world and
quality was continuously improving, he suggested that 4G be considered
only after the 3.5G network was introduced.
Earlier this year,
the Ministry of Information and Communications reported that it had no
intention of encouraging the immediate application of 4G technology in
order to safeguard mobile network operators.
The ministry stated
that licensces for mobile operators to provide 4G services would be
delayed until at least 2015, after service providers had completed test
runs and an assessment of market demand for the new technology had been
made.
Five mobile operators have already been allowed to run
basic 4G trials since 2010. 4G promises much faster mobile and Internet
connections than 3G.
Another issue under consideration is which frequency band to use for 4G long-term evolution (LTE).
LTE,
marketed as 4G LTE, refers to the wireless communication of high-speed
data used by mobile phones and data terminals. According to the Radio
Frequency Department at the Ministry of Information and Communications,
the waveband for LTE 4G in Vietnam needs to be used and supported by
other countries. Even more importantly, it needs to be compatible with
RiPE technology, which is affordable for most Vietnamese users.
While
the Vietnamese telecommunications market has grown rapidly, it is still
controlled by three large network providers (Viettel, Mobifone and
Vinafone) which see total annual turnover of 5.5 billion USD.
Vietnam
has around 20 million 3G subscribers out of over 130 million mobile
phone users, according to the Ministry of Information and
Communications.-VNA