4 thoughts on “Deputy PM: 5G Crucial to Vietnam’s Development; Viettel installs Vietnam’s first 5G base stations in Hanoi”

1. July 19, 2019 NY Times: Is Huawei a Security Threat? Vietnam Isn’t Taking Any Chances
   As the world splits along U.S.-China fault lines, telecom companies in Vietnam appear to be quietly avoiding the Chinese tech giant in their 5G plans.

   Viettel (owned by Vietnam government) has been developing its own software and equipment for many years, Mr. Thang told the NY Times (url below), and employs 300 engineers in research and development. It has designed and produced its own base stations, which exchange radio signals with cellphones, and its own computer systems for billing customers’ accounts, he said.

   Most mobile carriers simply buy these things from outside vendors such as Ericsson or Huawei. Mr. Thang said Viettel had deployed around 1,000 self-produced 4G base stations across Vietnam, Cambodia and other countries.

   But when asked whether Viettel’s aim in developing its own equipment was to help keep its networks secure, Mr. Thang first consulted in Vietnamese with a company communications officer, Le Duc Anh Tuan, who then answered in English.

   The most important reason for Viettel to develop its own software, Mr. Tuan said, is so it can respond more nimbly to customers’ changing needs. Security is not the main factor, he said.

   Asked why Viettel didn’t use Huawei in Vietnam but did use Chinese suppliers elsewhere, Mr. Tuan said equipment makers gave the company different deals in each country. “We have many partners,” he said, and Viettel considered each of them on its merits.

   https://www.nytimes.com/2019/07/18/technology/huawei-ban-vietnam.html

2. Vietnam Makes Big Bet on Homegrown 5G, Iain Morris, International Editor, Light Reading

   Vietnam’s largest phone company was evidently not kidding last year when it announced plans to build its own 5G network. In an update last Friday, Viettel has reportedly promised to launch a 5G service in June based on its own equipment and software. It has already carried out trials, including a 5G video call last week.

   Viettel’s announcement is potentially a big deal. Telecom operators do not typically build the mobile networks they use to provide services. Usually, that job goes to a diminishing number of manufacturing giants, of which the very largest are China’s Huawei, Sweden’s Ericsson and Finland’s Nokia. There is little precedent for what the Vietnamese service provider is attempting.

   Its motivation seems partly geopolitical. International concern surrounds Huawei, the world’s biggest mobile infrastructure vendor. Critics see it as a Chinese government stooge and threat to national security, as well as a trade cheat. The Vietnamese may need little persuading: Tension between China and Vietnam has been mounting over territorial claims in the South China Sea. The two countries nearly came to nautical blows last year when Chinese authorities sent ships into Vietnamese waters. A Chinese 5G vendor is unlikely to be a popular choice in Vietnam.

   Huawei avoidance is not the only explanation, though. Much like India, Vietnam is becoming newly assertive on the global technology stage as its economy continues to grow. Thanks largely to its abundance of cheap labor, it has already emerged as a tech manufacturing hub in Asia. Samsung, the South Korean electronics giant, makes about one third of its mobile phones in Vietnamese factories. Vietnamese government attention is now turning to homegrown expertise. Widely touted as an essential pillar of the future digital economy, 5G has risen swiftly up the agenda.

   That Viettel should take the 5G lead is not altogether surprising. Founded in 1989, it is wholly owned by the Vietnamese state and appears to have close links to the military. Its activities have not been confined to operating telecom networks, either. Indeed, Viettel appears to have started out in construction and today boasts expertise in fields including hi-tech research and manufacturing.

   It is also a bigger organization than outsiders might assume. According to its own website, it made about $10.1 billion in revenues in 2018 and now serves more than 110 million customers worldwide, following expansion into several markets in Asia, Africa and the Americas. Its workforce in 2018 included more than 70,000 employees, it says.

   Even so, this makes Viettel a lot smaller than Ericsson alone. With its 5G focus, the Swedish equipment vendor had sales of $22.1 billion in 2018 and finished last September with around 96,000 employees. Each year it pumps about $4 billion into research and development. To match that, Viettel would have to commit about 40% of its total revenues to R&D, a sum that no existing vendor could manage. Struggling to remain competitive, ZTE, a smaller Chinese supplier, injected about 15% of its revenues into R&D during the first nine months of 2018. Last week it announced a share offering worth about $1.7 billion to fund additional 5G efforts.

   The difference is that Viettel is not necessarily trying to compete on the global 5G stage — at least, not in the first instance. Its statements, as reported by mainstream press outlets, suggest its initial focus is on 5G development for its own service provider business. Sales to other companies are not yet an obvious consideration.

   As regards internal R&D, Viettel’s interest might also lie primarily in the “core,” a sensitive, software-based part of the network responsible for traffic routing and other important functions. This would not be such a leap into the unknown because Viettel — unusually for a telco — already sells billing software to other service providers and demonstrated an internally developed 4G core product at last year’s Mobile World Congress. In August 2019, it reportedly said its aim was to produce 80% of its core network infrastructure this year. If Viettel has few worries about the more hardware-based radio access network (RAN), it could strike a 5G deal with Ericsson, Nokia or Samsung for this gear.

   This will not silence the skeptics. The lack of alternatives to the big three vendors shows that designing sophisticated network systems is no cakewalk. Elsewhere, operators equally worried about reliance on a few giant kit vendors are backing more open interfaces and software tools as an alternative. Rather than develop these technologies themselves, they are turning to an emerging ecosystem of network startups and software specialists.

   To what extent these tools figure in Viettel’s plans is currently unknown. Building traditional gear would be difficult and possibly counterintuitive, given the widespread telco interest in more open networks. With its financial clout and customer base, Viettel could certainly provide some impetus for technologies such as open RAN, which promises to reduce 5G costs and make kit more interoperable. Yet open RAN is still not ready for mass-market deployment in the most demanding conditions. Even its most enthusiastic telco supporters see it as a complement to the mainstream suppliers in specific circumstances — not a substitute for them.

   If nothing else, Viettel’s plan is a sign of the 5G-fueled backlash against years of vendor consolidation. Countries and companies do not want to be dependent on two or three foreign players for such a critical technology. A domestic alternative would provide a kind of network security akin to the energy security that has been so important since the Arab oil embargo of the 1970s. That explains why countries such as India, Russia, the US and now Vietnam are trying to foster homegrown champions. Expect others to follow.

   https://www.lightreading.com/asia-pacific/vietnam-makes-big-bet-on-homegrown-5g/d/d-id/756939?

3. Enjoyed reading that Vietnam government official thinks 5G is crucial to the country’s development. Very good stuff, thanks!

4. Vietnamese network operators now manufacturing cameras

   Experts say that camera service is like a telecom service as it requires transmission connections and storage in the cloud. Foreign companies do not have the same connections with Vietnamese mobile network operators as domestic camera manufacturers do.

   At a seminar held by VietNamNet this week, Khuong Duy, director of Camera Center of Viettel High Tech, said that network operators with a high number of customers have advantages in introducing camera products to the market. The firm has joined the camera market, aiming to build diverse products and services for household clients using FTTH.

   Viettel High Tech targets providing products that ensure security and safety for clients with Make in Vietnam standards, using Viettel products: a management and storage system at Viettel, smart features researched and developed, and owned by Vietnamese.

   The participation of network operators in the production of Camera Ai will bring benefits to users, making them feel secure about personal information security. They can use the services in association with other telecom services.

   The firm is not focusing on the competition in price. The value it brings not only lies in the product of the camera, but the entire solution, platform and ecosystem which aim at bringing big added value to users.

   The enterprises attach much importance to ensuring safety for personal users and security in smart transport and smart cities, and serving national defense and national security tasks.

   In order to do so, Viettel High Tech focuses on algorithms, Ai applications. Viettel network has clients covering the entire country – an easily accessible market. It is expected that in 2023, Viettel High Tech will provide camera products to household clients and high-end AI cameras that provide solutions to smart cities, national defense and security, the government and public administration.

   Hoang Quoc Huy, deputy CEO of MobiFone Global, said the value is 2 cameras per 100 people. The figure is still low if compared with other countries, including the US and China (15 cameras per 100 people).

   With digital transformation, demand for cameras will rise. Individual clients will need cameras to supervise older people and children, and prevent burglars. IZs would use cameras for internal supervision, while cities would keep watch over transport and security.

   https://vietnamnet.vn/en/vietnamese-network-operators-now-manufacturing-cameras-2087285.html

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