MobiFone's staff install 5G equipment. — Photo courtesy of MobiFone

HÀ NỘI — The Ministry of Information and Communications (MIC) has just issued a Decision approving the plan to organise an auction of rights to use radio frequencies for the 2500 - 2600 MHz band for land mobile communication systems.

This is the frequency band used to develop 5G networks towards commercialisation.

According to the plan for organising an auction of the right to use radio frequencies for the 2500 - 2600 MHz band for terrestrial mobile communication systems, the duration of the band's use by the winning enterprises is up to 15 years.

The plan also clearly states the conditions for using frequency bands for businesses. Enterprises must commit to deploy a telecommunications network to auction the 2500 - 2600MHz band.

After two years from the date of being licensed to use the 2500 - 2600MHz band, businesses must commit to deploying at least 3,000 5G broadcasting stations using the 2500 - 2600 MHz band; officially commits to provide terrestrial mobile telecommunications services using the 2500 - 2600 MHz band no later than 12 months from the date of license to use the 2500 - 2600 MHz band.

In addition, the quality of telecommunications services and roaming telecommunications services must also be guaranteed according to regulations.

The starting price for the auction of the 2500 - 2600 MHz band for businesses is determined according to the provisions of Article 18 of Decree 63/2023/NĐ-CP.

Specifically, the starting price of the 2500 - 2600 MHz band block for 15 years of use is nearly VNĐ4 trillion (US$166.7 million). The deposit is VNĐ200 billion.

Within three working days from the date the MIC approves the winning auction results, the MIC’s Authority of Radio Frequency Management will notify the winning organisation the fee for granting the right to use radio frequencies, fees and charges for using radio frequencies, telecommunications license fees, telecommunications right fees which must be paid to be granted a telecommunications service business license and a license to use frequency bands according to prescribed in Clause 1, Article 23 of Decree 63/2023/NĐ-CP. — VNS