The earliest 5G services are set to be commercialized in mid-2020
following trials conducted through 2019
According to analysts from
Fitch Solutions, 5G appears to be high on the Government’s priority list, with
the earliest services set to be commercialized in mid-2020 following trials
conducted through 2019.
“We believe the impact will
be greatest in the enterprise segment, particularly in Vietnam’s rapidly
growing manufacturing sector, with Government initiatives supporting industry
uptake. At the consumer level, we expect early launches to centre on larger,
higher-income cities, with operators likely to focus on both mobile and
fixed-wireless services,” the analysts said.
While fibre-based broadband
connections in Vietnam have grown significantly in recent quarters, Fitch
believed that fixed-wireless 5G could still serve as a complement to existing
fixed services and support the development and adoption of higher bandwidth
services, such as virtual reality (VR) video streaming and cloud gaming
applications.
The analysts said while these
short term moves could put investments into 5G networks on the backburner, the
Government could pressure the State-owned operators to focus on 5G deployment.
Licences and spectrum are yet to be allocated, although the Ministry of
Information and Communications (MIC) could convert 5G trial licences, allocated
in 2019, into commercial licences.
Through Resolution 52,
introduced in September 2019, the Government aims to actively involve itself in
the wider adoption of Industry 4.0 technologies to drive the country’s economic
growth.
“We expect the government to
lend support to the wider 5G ecosystem through the creation of test beds, or
through enterprise grants to adopt 5G technologies,” Fitch said.
The MIC is already looking at
licensing certain frequencies to domestic manufacturers of 5G products, and has
stated that it will support the development of 5G-capable chips, although
further details have not been disclosed.
According to Fitch analysts,
the wider availability of low-cost 5G devices in Vietnam will support uptake,
primarily among cost-conscious consumers.
“In terms of industry
applications, we expect to see strong use of 5G in the manufacturing sector.
Adoption of 5G-enabled sensors across the production line is a certainty,
although this will centre most largely on the use of private networks in the
short run, such as those developed by private players. Operators have made no
indication of their 5G plans for the enterprise and industrial sectors,
although we expect them to look at developing 5G networks in key economic zones
and industrial areas,” the analysts said. — VNS
Source: Vietnam News
About TMA: TMA Solutions was established in 1997 to provide quality software outsourcing services to leading companies worldwide. We are one of the largest software outsourcing companies in Vietnam with 2,500 engineers.
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