2015 Is Proper Time for 4G Technology Deployment

This information was announced at the First 4G LTE International Conference 2015 with the theme "Overall planning for technology optimisation and service diversification towards consistent 4G LTE technology in Greater Mekong Sub-region" in Hanoi. The event was organised by the Vietnam Internet Association in collaboration with IDG ASEAN Group.

 

According to the Department of Telecommunications, since 2009, Vietnam has invested in development of 3G (third generation) technology. After five years of implementation, the number of 3G subscribers increased from 7 million in 2009 to nearly 29 million in January 2015, accounting for nearly one-third of the total population. The number of subscribers continues to increase dramatically. Currently, the 3G technology covers all 63 provinces in the country, even islands and remote areas. The quality of 3G services has also improved significantly, reaching 42 Mbps. Charges for 3G services have been reduced. However, since 2012, 4G technology has boomed and gradually replaced 3G technology. By late 2014, the world had more than 300 telecom firms in more than 100 countries providing 4G services. There were 61 providers in 25 countries in Asia.

 

According to the Global mobile Suppliers Association (GSA), the number of 4G LTE subscriptions touched 497 million in 2014, an annual increase of 140 percent. GSA said LTE subscription net additions outpaced 3G subscriptions in the last six months of 2014. GSA forecasts there will be at least 450 commercially launched LTE networks globally by the end of 2015 against 364 that had entered service by the end of last year. With outstanding advantages in high-speed service availability and terminal popularity, 4G LTE networking will be the global key telecom trend in the upcoming time.

 

In Southeast Asia, 4G LTE service has been successfully implemented in Singapore, Malaysia, Indonesia and Brunei, while it is in the testing phase in countries of the Mekong sub-region. The US-based semiconductor company Qualcomm forecasts that some 25 billion electronic devices will be connected to the Internet by 2020. Thus, without doubt, 4G technology in Southeast Asia in particular and Asia in general has huge potential for development.

 

At the meeting, Mr Le Nam Thang, Deputy Minister of Information and Communications, affirmed that 4G LTE technology has multiple-time faster data transmission than 3G technology, thus enabling the supply of many new services and applications. Seeing this apparent trend, the Ministry of Information and Communications picked 2015 for 4G technology deployment in Vietnam. Vietnam is expected to license 4G deployment in 2016.

 

Explaining the timing for 4G technology deployment in Vietnam in 2015, Deputy Minister Thang said 4G LTE is developing very fast in the world. This is an important prerequisite for Vietnam to launch 4G. In addition, the 3G technology in Vietnam, though quite popular, still has existing limitations in quality and speed. If Vietnam wants to develop e-commerce and e-government on mobile platforms, it must need the speed and security of 4G. With very good 3G infrastructure, the growing number of users and the bandwidth development in both speed and quality will be favourable conditions for 4G LTE network deployment this year.

 

Thieu Phuong Nam, General Director of Qualcomm Indochina (Laos, Cambodia and Vietnam), stressed this is a “golden time” for Vietnam to launch 4G. He noted that Vietnam should not delay 4G any longer because carriers will miss a lot of business opportunities that the new technology brings in like healthcare, transportation and education. 4G will open up many new opportunities and business models and only 4G is a sufficient technology for these new services.

 

At the conference, participants said that although Vietnam is in an extremely favourable position to deploy 4G, it needs more detailed study for certain success. Currently, telecommunication infrastructure in Vietnam is still using 2G and 3G technologies in parallel. Therefore, 4G LTE technology investment needs roadmaps to grasp new technologies and utilise existing facilities. Authorities need a proper bandwidth strategy for the launch: Once all over the country or gradual coverage expansion. Deputy Minister Thang said, to deploy 4G effectively and sustainably, Vietnam needs careful studies and analyses before licensing 4G technology in 2016.