Vietnam Launches New 700MHz Spectrum Auction

The Vietnamese Ministry of Science and Technology (MST) announced that it will once again auction off two “diamond spectra” within the 700MHz frequency band used for 4G and 5G mobile communication.

The auction frequency bands are 703-713MHz and 758-768MHz (B1-B1), as well as 723-733MHz and 778-788MHz (B3-B3). Last year’s first auction failed due to insufficient registration, and this is the second attempt.

The starting price is set at 1.955 trillion Vietnamese dong (approximately 76.8 million US dollars). The auction adopts on-site bidding method, with a minimum markup of 20 billion Vietnamese dong (approximately 764800 US dollars).

Interested bidders must submit qualification documents within 30 days and pay a deposit of 100 billion Vietnamese dong (approximately 39.3 million US dollars). Viettel, the Vietnamese telecommunications giant that won B2-B2 (713-723MHz and 768-778MHz) in the May auction, has been banned from participating in this round of bidding.

The spectrum usage period is 15 years.

According to the latest auction plan of MST, the winning bidder must officially launch mobile services using the B1-B1 and B3-B3 frequency bands within one year after obtaining the license.

Within two years from obtaining the license, operators must build and operate no less than 2000 mobile base stations, and 30% of them must be put into operation within 12 months after obtaining the license.

In addition, at least 650 base stations must cover the maritime and island areas of Vietnam; All national highways built before 2030 must also achieve full coverage.

The 700MHz frequency band was originally used for analog television broadcasting, but has now been reassigned to 4G and 5G mobile communications. The coverage radius of this frequency band is about 1.8 times that of the 1800MHz frequency band, which can help operators reduce infrastructure costs and improve network performance.