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Revolutionary Internet Access: The Impact of Low Earth Orbit Satellites in Vietnam

Wide Coverage Direction

In a world where digital connectivity is pivotal, Vietnam is taking significant strides in bridging the digital divide. According to the Radio Frequency Department of the Ministry of Science and Technology, the Low Earth Orbit (LEO) telecommunications satellite system operates at altitudes ranging from 160 to 2,000 kilometers. This low orbit yields advantages like low signal latency and high data transmission speeds—ranging from 50 to 500 Mbps. One of the most compelling features of the LEO systems is their capacity to provide expansive coverage without the need for extensive ground infrastructure. This makes them particularly suited for offering stable, high-speed internet services to remote areas, including rural and mountainous regions as well as islands.

Globally, notable LEO systems from the United States, such as SpaceX’s Starlink, and China are currently operational. Starlink, in particular, boasts a significant number of deployed satellites, positioning it as a leading player in the quest for universal internet access.

Current Telecommunications Landscape in Vietnam

In Vietnam, the existing terrestrial telecommunications infrastructure primarily relies on fiber optic networks and 4G and 5G base transceiver stations (BTS) operated by major providers like Viettel, VNPT/VinaPhone, and MobiFone. While urban areas enjoy widespread coverage and stable speeds, remote and isolated regions often face challenges. The high costs associated with construction and operation in complex terrains make it difficult to provide reliable connectivity.

The Vietnam Internet Association has highlighted the potential of low-orbit satellite systems as a complementary solution. These systems present an opportunity to enhance telecommunications services, especially in a country characterized by diverse geography and varying levels of service access.

The Arrival of Starlink in Vietnam

In a landmark decision made in early April, Deputy Prime Minister Ho Duc Phoc officially handed over a pilot project for Starlink satellite Internet service to representatives from SpaceX. This initiative, established under Decision No. 659/QD-TTg dated March 23, permits the pilot operation for a duration of 5 years, with a cap of 600,000 subscribers. It comes with stringent security and defense guidelines aimed at ensuring the responsible implementation of this groundbreaking technology.

This pilot is not merely about integrating advanced technology; it symbolizes Vietnam’s commitment to embracing innovation and enhancing its digital landscape. The goal is to facilitate the digital transformation necessary for comprehensive public services and digital economy growth. The introduction of Starlink could dramatically level the playing field, granting all citizens, irrespective of their geographical location, access to critical digital infrastructure.

Addressing Digital Connectivity Challenges

During the Covid-19 pandemic, Vietnam successfully extended internet connectivity to 2,500 villages previously suffering from low signal strength through special legislative measures. However, as of late 2024, there are still 751 areas with poor connectivity. The primary obstacles in extending coverage remain the lack of power lines, fiber optic networks, and high operational costs associated with broadcasting stations.

To tackle these challenges, experts within the Ministry of Information and Communications have advocated for utilizing low-altitude satellite services. Implementing such services could serve as an effective means to establish connectivity in underserved residential areas, eventually allowing for wider Wi-Fi access.

Economic Viability of Starlink

The initial costs associated with acquiring Starlink’s terminal equipment are estimated to be around $500 to $600, with monthly subscription fees ranging from $50 to $100. While this may seem steep for many households, it is considerably lower than the expenses tied to constructing a BTS. Thus, low-orbit satellite technology may present a financially viable alternative for expanding digital coverage.

However, it’s essential to note that LEO satellite services are susceptible to environmental factors. Adverse weather conditions, such as heavy rain or storms—common in Vietnam—can disrupt signals. Additionally, considerations related to information security will play a critical role in the successful deployment of these services.

Competitive Landscape and Future Implications

The introduction of the pilot low-orbit satellite service is positioned to impact the competitive landscape among domestic network operators. By leveraging technological innovations provided by LEO systems, these operators will inevitably have to adapt their offerings to stay relevant in a rapidly evolving market.

As Vietnam embarks on this journey towards enhanced connectivity, the advantages offered by low-orbit satellite services promise to transform not only access to the internet but also create opportunities for growth across sectors, fostering a more digitally inclusive society.

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