Telecom operators are expected to compete less on network coverage and more on service quality and customer experience. — Photo Bnews

HÀ NỘI — The telecommunications industry is entering a new phase as infrastructure sharing shifts competition from network expansion towards service quality.

The transition gained fresh momentum after VNPT and MobiFone signed a Memorandum of Understanding to share 4G and 5G infrastructure nationwide.

The agreement comes as government regulators actively promote infrastructure sharing among telecom operators to optimise investment costs and reduce overlapping network deployment.

For many years, Việt Nam's mobile telecommunications sector has been marked by duplicated network infrastructure. In many major cities, it is common to find three or four base transceiver stations (BTS) owned by different operators within the same area.

With each operator investing in its own transmission systems, base station sites and radio equipment, industry-wide capital expenditure has run into billions of US dollars, while the proliferation of telecom towers has also added pressure to urban planning and city landscapes.

As Việt Nam enters the 5G era, deployment costs and infrastructure requirements are becoming even more demanding. Because 5G relies on higher-frequency spectrum to deliver faster data speeds, its coverage area is significantly smaller than that of 4G and 3G. To achieve comparable network coverage, the number of 5G base stations may need to increase by three to five times compared with previous generations.

If telecom operators continue to build separate infrastructure, total capital expenditure would rise sharply, increasing financial pressure on companies, slowing the commercialisation of 5G services and potentially driving up service costs.

Against this backdrop, the infrastructure-sharing agreement between VNPT and MobiFone is seen as a practical solution to improve investment efficiency. Sharing 4G and 5G infrastructure nationwide would allow both operators to expand network coverage without proportionally increasing the number of newly built base stations, thereby optimising both capital expenditure (CAPEX) and operating expenditure (OPEX).

Commenting on the agreement, VNPT CEO Huỳnh Quang Liêm said infrastructure sharing aligned with global industry trends by optimising resources, minimising redundant investment, enhancing competitiveness and contributing to Việt Nam's national digital transformation.

Beyond cooperation between individual operators, the Ministry of Science and Technology (MoST) is also encouraging major infrastructure owners such as Viettel and VNPT to share network infrastructure with smaller telecom operators, including mobile virtual network operators (MVNOs).

Treating telecommunications infrastructure as a shared national resource is expected to help preserve urban landscapes, improve land-use efficiency and create a more level playing field in the telecommunications market. For smaller operators and new market entrants, infrastructure sharing could significantly reduce initial network deployment costs.

On MobiFone's side, Trần Đức Thành, acting CEO of the corporation, said the agreement would improve network investment and operational efficiency, strengthen cooperation between the two companies, modernise telecommunications infrastructure and support sustainable development.

Competition shifts beyond network coverage

As infrastructure sharing becomes more widespread, network coverage is expected to become less of a competitive differentiator. Instead, operators are likely to compete increasingly on service quality and customer experience.

Consumers are no longer expected to judge mobile operators simply by whether coverage is available, but rather by the actual quality, stability and reliability of their network connections.

Beyond connectivity, digital service ecosystems are emerging as another key competitive advantage. Operators that provide a broader range of digital services, such as Mobile Money, e-wallets, solutions for small- and medium-sized enterprises (SMEs), digital government platforms and digital entertainment, are expected to be better positioned to compete.

At the same time, digital customer service capabilities are becoming increasingly important. The adoption of AI-powered virtual assistants, automated customer support and self-service mobile applications that allow subscribers to change service plans or register for new services with just a few taps is rapidly becoming an industry standard. — VNS