To deploy 5G, telecom operators have to make significant investments. For ASEAN region, the investment may be about 11-18 billion USD, while in Vietnam this figure is about 1.5 to 2.5 billion USD in the period of 2020 - 2025. The above information has been stated by the chairman of Cisco Group of ASEAN region, at the press conference to launch the report "5G in Southeast Asia: Restarting growth in business and consumer markets".
The study was conducted by A.T. Kearney points out that compared to 4G, 5G offers 50 times faster speeds, responds 10 times faster and requires much lower power consumption for network connection. This will be driven by a combination of three special features - high throughput, extremely low latency, and low power consumption for each mobile connection.
Speed, low latency, and enhanced quality connections will help telecom operators provide super-fast Internet connections; enable high-definition video streaming, entertainment services offered on cloud computing; bring interactive/virtual reality (AR/VR) based content services to consumers.
These features also help to quickly commercialize new 5G service case and application models (5G use case) including applications for smart cities, industry 4.0, applications of the Internet of Things. (IoT) on a massive scale and more. Telecom operators are thus able to increase revenue from both retail consumers and corporate customers.
The general director of Cisco Vietnam, said that countries like Vietnam have long benefited from relatively low labor costs, especially in key areas such as manufacturing. However, thanks to the 4th industrial revolution, this will not be an advantage in the coming years. Vietnamese businesses are aware of this and are looking to take advantage of industry-related technologies 4.0 to improve performance and maintain their growth in the future.
"Deploying 5G services will play a key role in promoting digitalization of businesses and bring significant benefits to Vietnamese businesses" - the general director expressed, at the same time. said 5G is expected to create a big revolution in connectivity. This is a potential market for telecom operators.
The general director of Cisco's ASEAN Service Provider Division, added that the deployment of 5G services will require significant investment in technology to modernize telecommunication networks. In Southeast Asia, telecom operators will likely continue to invest in upgrading their 4G networks and bringing in the features of 5G technology in a carefully calculated step by step.
In addition, carriers will need to carefully build a list of services and prices for 5G when encouraging and transferring users to high-speed networks. Consumers will be excited about 5G and willing to pay for better quality, which is not possible with 3G or 4G. This work helps carriers avoid the disaster of participating in the price war just to attract more subscribers in the hope that customers will pay higher at a later stage, which is very dangerous. On the business side, carriers need to create new capabilities and combine advanced connections with solutions and applications to help customers understand, implement and expand value-added services. They will also have to confront a range of competitors that offer enterprise-specific networks.
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