Vietnam’s telecommunications sector is undergoing a transformative phase, driven by a strategic spectrum acquisition that promises to reshape the nation’s digital landscape. Viettel, a dominant state-owned military telecommunications enterprise, has secured a critical block of the 700 MHz frequency band through a competitive auction administered by Vietnam’s Ministry of Information and Communications. This milestone acquisition, valued at approximately VND 1.95 to 2 trillion (roughly $75 to $78 million USD), is a calculated move to enhance Viettel’s 4G and 5G network footprint across the country’s varied geographic terrain and densely populated urban centers. With a 15-year license period, this spectrum position aligns Viettel’s ambitions with global mobile standards, setting the stage for expanded connectivity and improved service performance.
The significance of obtaining the 700 MHz spectrum extends beyond a mere expansion of frequencies. It represents a strategic leap forward in Viettel’s mission to provide near-universal coverage of advanced mobile technologies by the year 2030. This acquisition will enable the operator to deliver superior network efficiency and user experience at reduced infrastructure costs, fueling Vietnam’s broader digital evolution and setting up new platforms for industry innovation.
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The exceptional propagation qualities of the 700 MHz band have earned it the reputation of a “diamond” frequency block within global telecommunications circles. Compared to higher-frequency bands, lower frequencies like 700 MHz travel greater distances and penetrate physical obstructions such as buildings far more effectively. Technical analyses reveal that the 700 MHz band’s coverage radius is roughly 1.8 times larger than that of the 1800 MHz band, offering Viettel a significant advantage in reaching both rural expanses and urban environments with fewer base stations. This means cost savings in cell tower deployment can amount to billions of Vietnamese dong, a major financial benefit when considering the scale of nationwide network rollout.
Vietnam’s challenging topography—characterized by mountainous regions and densely packed cities—has historically complicated network coverage efforts. The 700 MHz band provides a vital tool in tackling these obstacles, enabling Viettel to extend its 4G and 5G signals into areas that were previously underserved or unreachable. This will bridge connectivity disparities, facilitating digital inclusion across the socioeconomic spectrum and supporting aspirations for an inclusive digital society by 2030.
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From a strategic standpoint, Viettel’s successful bid amid fierce competition—particularly from rival state enterprise Vietnam Posts and Telecommunications Group (VNPT)—cements its market leadership and underscores its commitment to infrastructure development. The auction process was competitive, spanning several rounds, reflecting the high commercial and technological value of this frequency spectrum. Major General Tao Duc Thang, Viettel’s CEO, noted that the expenditure aligns with global benchmarks for prime radio frequencies, demonstrating a shrewd commercial appraisal and the spectrum’s pivotal role in the company’s growth strategy.
Controlling the 700 MHz band not only broadens geographic reach but enhances Viettel’s capacity to deliver reliable, high-quality standalone 5G services. This complements their existing rights over higher frequencies in the 2,500–2,600 MHz range, together allowing multifaceted network architecture that balances large-area coverage with indoor penetration. The spectrum acquisition thus accelerates the deployment of next-generation mobile networks, placing Viettel at the forefront of Vietnam’s digital infrastructure.
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Beyond individual corporate gains, this spectrum acquisition dovetails with broader national ambitions for digital transformation. Viettel is well-positioned to offer competitive and fast mobile broadband nationwide, catalyzing developments in smart cities, Industry 4.0 technologies, healthcare innovations, and educational platforms. The government’s policy environment actively supports the state-owned telecom leader’s expansion, viewing the sector’s modernization as a lever for social progress and economic development.
On the economic front, Viettel’s growth fueled by enhanced spectrum assets contributes substantially to Vietnam’s fiscal landscape. The company has experienced remarkable financial results, with quarterly net revenue increasing by over 27% year-on-year and profits reaching hundreds of billions of VND. Its corporate social responsibility footprint is likewise substantial; in 2024, Viettel backed social programs valued at more than 530 billion VND, spanning education, healthcare, poverty reduction, and disaster relief efforts. This blend of profitability and social engagement bolsters its reputation as a key national asset.
Moreover, Viettel’s ongoing modernization, driven by spectrum acquisitions like the 700 MHz license, catalyzes job creation and nurtures emerging digital business ecosystems reliant on robust mobile connectivity. The company’s tax contributions exceed 42 trillion VND annually, underlining its role in underpinning state revenues and funding public expenditures.
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In essence, Viettel’s acquisition of the 700 MHz frequency band is more than an expansion—it is a transformational inflection point for Vietnam’s telecommunications landscape. The superior propagation properties of this spectrum will enable Viettel to maximize its 4G and 5G coverage, reducing deployment costs and breaking down barriers to connectivity across diverse urban and rural landscapes. Strategically, the win reinforces Viettel’s dominant market presence while aligning with national objectives to accelerate digital integration and economic modernization.
As Viettel powers towards nearly complete mobile coverage by 2030 and continues to develop cutting-edge network solutions, Vietnam stands on the cusp of a new digital era—one where connectivity fuels innovation, inclusion, and sustainable growth throughout society. The 700 MHz acquisition is the key evidence that Viettel is not just chasing coverage but crafting a future where technology genuinely transforms lives. Case closed, folks.
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