Investing in 3G network in Vietnam is costly?

Published: 14/11/2008 05:00

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VietNamNet Bridge – In the current economic slowdown, should we be investing billions of US dollars to develop the third generation (3G) network in Vietnam? Are 3G-based services urgent needs?

Deputy Minister Le Nam Thang

VietNamNet Bridge – In the current economic slowdown, should we be investing billions of US dollars to develop the third generation (3G) network in Vietnam? Are 3G-based services urgent needs?

Deputy Minister of Information and Communications (MIC) Le Nam Thang spoke to the press about this topic, several days after the MIC delivered 3G exam documents.

Do you think that it is necessary to build 3G in Vietnam now, at this difficult period, when this project requires billions of US dollars?

3G technology was developed in the world in late 1999 and early 2000. Hundreds of operators and users in the world are using this technology.

At this moment, many developed countries are researching and using 3.5G and 4G technology. Around 8 years ago, equipment for 3G networks was quite expensive but now the prices for 3G equipment are nearly the same as equipment for 2G network.

So investing in 3G networks is not more costly compared to investment in 2G networks while 3G technology’s values are great.

Investment in 3G network is huge, but this is the total investment for 15 years and this is the job of operators.

Why has the MIC only granted 3G licences to four companies?

This is an issue of resources of frequency. A 1.900 – 2.200 MHz frequency band is sufficient for four companies. If the frequency band is divided in bigger or smaller parts it would be ineffective. Most other countries in the world have also split this frequency into four parts.

3G technology has four standards. The one that we will use is WCMA; so in the future, other businesses can develop other frequency bands and other technologies. The opportunity with 3G is still huge.

Did the MIC research the need for 3G services in Vietnam before it delivered the exam documents? Does the ministry have any policy to develop both the 3G network and digital content services?

We surveyed the need for 3G services in Vietnam and referred to international experts’ opinions. This is a suitable moment for the development of 3G.

Besides developing 3G infrastructure, the MIC will manage the development of digital content services. The Ministry has set up the Television Broadcasting and Electronic Information Agency and the new agency is about to issue regulations to manage blogs, computer games, etc.

(Source: Tien Phong)

Update from: http://english.vietnamnet.vn//tech/2008/11/813673/

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