Vietnam’s Ministry of Science and Technology auctioned the rights to use spectrum in the 900-915 MHz and 945-960 MHz bands on September 9. This move is part of a strategy to use frequencies released by the discontinuation of 2G networks to enhance 4G and 5G services.
As stated to the Authority of Radio Frequency Management, the auction will allow mobile operators to access spectrum freed up by the end of 2G, supporting the development of their 4G and 5G networks. The auction will start with a minimum bid of over VND 1.056 trillion (around USD 40.2 million) for each spectrum block, and the licenses will be valid for 15 years.
The 900 MHz spectrum is divided into three paired blocks—C3-C3′, C4-C4′, and C5-C5’—each providing 2x5MHz bandwidth in the respective frequency ranges of 900-905/945-950 MHz, 905-910/950-955 MHz, and 910-915/955-960 MHz. Bidders can participate directly in the auction, which will follow an ascending-price format. Each company may bid for up to two paired spectrum blocks.
Bidding increments are set at VND 10 billion (approximately USD 380,000), and companies interested in bidding for a block must submit a deposit of VND 55 billion (USD 2.1 million). Mobile operators recognize that the 900 MHz spectrum became available because 2G networks were terminated. This low-frequency band is advantageous because its signals can travel longer distances and cover broader areas, making it ideal for enhancing 4G and 5G services.
According to a Prime Ministerial decision outlining Vietnam’s information and telecommunications infrastructure plan through 2050, the strategy includes upgrading telecommunications infrastructure and phasing out older mobile technologies like 2G and 3G. A related circular from the Ministry of Science and Technology, effective from June 24, 2024, established regulations for the 1,800 MHz and 900 MHz bands to support Vietnam’s public terrestrial International Mobile Telecommunications.
This roadmap mandates that, starting October 26, 2024, mobile services will not be available for devices that only support the GSM standard, except in certain specified cases. The 2G network can continue to operate until September 15, 2026, with some exceptions.
As part of the initial phase of the shutdown, Vietnamese mobile operators must stop providing service for new connections on non-compliant mobile phones that rely solely on 2G networks, while the complete discontinuation of 2G technology is scheduled for September 2026.
Vu Thu Hien, from the Authority of Radio Frequency Management, noted that businesses licensed to use the 900 MHz band will have their licenses extended for another two years beyond September 2024 to accommodate users of 3G and 4G devices that do not support VoLTE.
Many older 3G and 4G smartphones lack VoLTE capability, meaning users will still need to utilize 2G or 3G networks for voice calls until the full shutdown occurs in 2026. After 2G ends, Viettel will operate only 4G and 5G, since it has already discontinued 3G services. Conversely, VNPT and MobiFone will retire only their 2G networks and continue to provide 3G, 4G, and 5G services.
Consequently, basic “brick phones” that do not support 4G will no longer function on Viettel’s network, and devices lacking at least 3G capability will be inoperable on VinaPhone and MobiFone networks. After discontinuing 2G services, mobile operators must quickly expand 4G and 5G coverage to maintain service quality, especially in remote and underserved regions.
