The Vietnamese government has approved plans to commence the process of introducing 4G technology this year, despite concerns over utilization of 3G and the cost of devices.
The government has approved a telecom development master plan involving starting to issue commercial 4G licenses next year, Vietnam Net Bridgereported.
Five operators – FPT Telecom, VNPT, Viettel, CMC and VTC – were licensed to pilot 4G services four years ago. The country's major operators, including incumbents Viettel, MobiFone and Vinaphone, are ready to launch 4G services following successful trials.
But the report notes that they still have misgivings about adopting the technology because 3G services and spectrum are yet to be fully utilized.
Only around 30 million Vietnamese consumers currently subscribe to 3G services, or 30% of the total number of mobile subscribers. This leaves large potential for growth in the market without needing to invest in 4G rollouts.
There are also concerns that the costs of 4G smartphones may be too high for a developing economy such as Vietnam.
The ministry nevertheless plans to begin issuing licenses from next year, starting with the major cities. The government estimates that 2017-18 will be a good time to launch 4G in earnest, as the 3G subscriber base is anticipated to be around 50-60% of the total market at that time.