Spectrum licensing and spectrum auction in case study of Vietnam

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1 Spectrum licensing and spectrum auction in case study of Vietnam Mr. Nguyen Phi LONG Official of Frequency Assignment and Licensing Division ARFM - MIC Ha Noi, 11/2016

2 Outline 1. Introduction about Vietnam 2. Organization of National Spectrum Management structure in Vietnam 3. Summary of ICT market in Vietnam 4. Issues handled - Case study of Vietnam 2

3 The Socialist Republic of Vietnam Territory: 330,951.1 sq. km Population: ~ 92, mil. Capital: Ha Noi Climate: Viet Nam lies in the tropics and monsoon Topography: Three quarters of Viet Nam's territory consist of mountains and hills Administrative Units: Viet Nam is divided into 63 provinces and cities. 3

4 ARFM s RESPONSIBILITIES Spectrum planning (approved by MIC Minister, National Allocation Table by PM) Frequency assigning & licensing Preparing legal documents ARFM Monitoring International freq coordination & cooperation Technical Support Settlement and Inspection 4

5 ARFM structure AUTHORITY OF RADIO FREQUENCY MANAGEMENT MANAGEMENT BOARD RF Policy & Planning Div Int. Cooperation and Freq. Coordination Div RF Assignment & Licensing Div ARFM s Office Planning & Investment Div Finance and Account Div Inspector Div RF Monitoring Div Organization and Personnel Div Technical Center 3m EMC lab Regional RF Center No I - VIII 5

6 3G subs (mil) Summary ICT market in Vietnam Mobile market share 3G subscribers (mil) 3G market share

7 Number of 2G subs. decreases but still plays a crucial role 126,99 mil mobile Total subscribers (July 2016) 2G mobile subscribers account for 68% 3G mobile subscribers account for 32 % 2G services will be still launched in paralell with 3G (4G) services The number of 2G/3G subscribers July

8 Frequency assignment and Licensing Simplify procedures of licensing and assignments license transfer for some specific cases; Online- licensing: microwave, satellite, private networks Update on licensing exempt regulations ARFM 8

9 Frequency assignment and Licensing Granting and renewing > licenses in 2015 Radio frequency use licenses for all radiocommunication services e.g telecommunications, broadcasting, aeronautical and maritime services. Including around 21,280 electronic licenses

10 Licenced Frequency Bands 850/900 MHz Band CDMA/ GSM (2G) 3G/4G (WCDMA, LTE, LTE- Adv) 1,800 MHz Band 1710 MHz VNPT VMS Viettel Gtel VNPT VMS Viettel Gtel (GSM) 2G 4G (LTE/LTE-Adv) (2016) ,100 MHz Band IMT-2000 TDD VMS Viettel EVN HTC IMT- VNPT MSS 2000 VMS Viettel TDD MHz EVN HTC (WCDMA) 3G 4G (LTE/LTE-Adv) VNPT MSS 10

11 New spectrum for 4G/5G 2,300 MHz Band LTE/LTE-Adv 2,600 MHz Band LTE/LTE- Adv The 2.6 GHz band will be auctioned in

12 4G Licensing Roadmap Re-arrange frequency in 2.6 GHz band (from 3 to 4 FDD blocks) Auction 2.6GHz to 4G License in the bands 700MHz/850MHz (extend)/ 2100MHz (extend) / 2300 MHz License 4G in 1800MHz band Trial 4G in the bands 2100MHz and 900MHz License 4G in the bands 2100MHz and 900MHz Frequency arrangements in the bands 700MHz/ 850MHz (extend)/ 2100MHz (extend) 12

13 SPECTRUM AUCTION Decision No. 16/2012/QD-TTg of the Prime Minister regulating the spectrum auction and transfer of spectrum usage rights 1. Initial price of the candidate frequency band(s) 2. Public notification: form, registration, preliminary evaluations 3. Spectrum auction: multi-round, parallel for multi frequency bands 4. Withdrawal, abrogation, final result announcement 5. Re-auction 6. Auction fee, deposit (1~15% of initial price) & final payment 7. Spectrum license, communications license grant / revoke 8. Winners responsibilities 13

14 Band 2,600 MHz in the year options for auction: SPECTRUM AUCTION - Seal-bid auction: operators propose price for each MHz of each band in sealed envelopes - Simultaneous Multiple Round Auction (SMRA) with Switching: operators can switch and propose price for any band at each round SRMA with switching is preferred in case of Vietnam with only 4 bands 14

15 TRANSFER OF SPECTRUM USAGE RIGHTS License from spectrum auction can be transferred (>3 years after the license has been granted) Procedure for/responsibility of the transferor(s) Procedure for/responsibility of the receiver(s) MIC will verify the transaction within 45 days 15

16 SPECTRUM AUCTION Decision No. 835/2014/QD-TTg dated 03 June 2014 Frequency bands: 2,300 2,400 MHz, 2,500 2,570 MHz and 2,620 2,690 MHz Auction time: To be decided by MIC based on Plan, Market requirement, Technology, Services 16

17 Thank you! 17

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