Vietnam Raises Over VND 3 Trillion in 900 MHz Band Auction

Vietnam's three mobile network operators, VNPT, Viettel, and Vietnamobile, have successfully bid for frequency bands in the 900 MHz spectrum, collectively spending over VND 3 trillion (approximately USD 120 million). On the afternoon of September 9, the National Auction Company No. 5 organized the auction for the right to use three pairs of frequency blocks in the 900 MHz band. The starting price for each pair was VND 1,056,943,950,000. All three participating network operators were successful in their bids. VNPT secured the C3-C3' block (900-905 MHz and 945-950 MHz) for nearly VND 1.079 trillion. Viettel won the C4-C4' block (905-910 MHz and 950-955 MHz), while Vietnamobile acquired the C5-C5' block (910-915 MHz and 955-960 MHz), both at prices close to VND 1.077 trillion. According to the Ministry of Science and Technology, the 900 MHz band is a traditional frequency for mobile communication and possesses "four special characteristics." This auction took place just before Vietnam's planned shutdown of 2G services on September 15, with the 900 MHz band having been previously utilized for 2G mobile infrastructure. This is also the first time Vietnam has auctioned a frequency band that has been in use for many years. Previous auctions involved the 2.6 GHz and 3.7 GHz bands, which had never been licensed for mobile communication, and the 700 MHz band, which was freed up from terrestrial analog television broadcasting. The auction also adopted a new method, simultaneously auctioning all three pairs of frequency blocks. The process involved two phases: determining the quantity and position of the auctioned frequency blocks. This "advanced auction" approach allows businesses to participate proactively, aligning with their needs and the auction's dynamics. Ultimately, the auction of the 900 MHz band supplements frequency resources for IMT, the general term for mobile communication systems such as 4G and 5G. This is expected to enhance the quality of telecommunication networks, expand coverage, popularize services, and promote digital transformation. In practice, Vietnam's total IMT frequency allocation for mobile communication has doubled from 340 MHz in 2020 to 680 MHz by 2025. 5G coverage has also increased from less than 1% of the population two years ago to over 91.9%. Concurrently, Vietnam's mobile broadband download speed reached 205.6 Mbps in July, a fourfold increase from 50.9 Mbps in April 2024. These results indicate that Vietnam's digital infrastructure deployment capabilities are "developing strongly," placing the country among the top 10 nations with the highest mobile internet speeds globally.