Domestic firms say not afraid of competing with SpaceX following latter's entry into Vietnam

Many Vietnamese Internet service providers told Tuoi Tre (Youth) newspaper that they were not afraid of competing directly with Space Exploration Technologies (SpaceX), founded by Elon Musk, as the latter has received permission to pilot its Starlink satellite Internet service for users in Vietnam.

Nguyen Ba Dung, deputy director of mobile virtual network development at FPT Retail, commented that SpaceX, through Starlink, offers satellite Internet with higher speeds and lower latency compared to traditional satellite services.

However, its primary customers may be in remote areas where terrestrial telecom infrastructure is either absent or weak, businesses and organizations that need stable connections in locations where fiber optic cables are hard to deploy, or individual customers who need high-speed connections independent of mobile networks or fiber optics.

"Meanwhile, FPT Retail's service focuses on traditional mobile customers. As the target customers are different, SpaceX does not affect our customers in the short term. But in the long term, if service costs significantly drop, they could compete in certain market segments," said Dung.

A leader of a major telecom network provider in Vietnam also told Tuoi Tre that local companies do not need to worry due to two factors. First, SpaceX's trial satellite Internet service is limited to 600,000 subscribers within five years. With over 100 million Internet users in Vietnam, this number is insignificant.

Second, satellite Internet services are unlikely to be as cheap as high-speed fiber optic or 5G Internet services in Vietnam.

A large number of Internet users in Vietnam, particularly tech enthusiasts, expressed their eagerness to experience satellite Internet services, especially from Elon Musk's Starlink system.

Satellite Internet could be a direct competitor to the 5G service already available in Vietnam. Domestic telecom service providers have already launched commercial 5G services, offering good speeds at acceptable prices.

Once 5G coverage expands, the advantages of satellite Internet may only remain for use on airplanes or at sea, said Thanh Long, an administrator of a technology-focused social network.

The Vietnamese government has approved a five-year pilot program allowing SpaceX to deploy its Starlink satellite Internet services across the country.

The pilot program will include both fixed and mobile satellite services. The fixed services will offer Internet access and leased lines for mobile base stations, while the mobile services will provide connectivity at sea and in aircraft.

Under the prime ministers decision, SpaceX will be permitted to roll out low Earth orbit satellite telecommunications services in Vietnam.

SpaceX and its Vietnam-based subsidiary must comply with all requirements and conditions throughout the pilot program, including service types, deployment scope, subscriber limits, and frequency use, while adhering to Vietnam's national defense and security regulations.

The company is also responsible for honoring commitments outlined in its investment proposal, such as supporting essential connectivity programs, partnering with Vietnamese businesses to distribute hardware and services, and investing in the supply chain and terrestrial infrastructure.

The number of subscribers during the trial period is capped at 600,000, including the total number of telecom subscribers from SpaceX's subsidiary in Vietnam and those from telecom companies reselling the service.

According to research from multiple sources and countries with existing Starlink satellite Internet services, users and businesses incur substantial costs.

For instance, individual users may pay a subscription fee of around US$110 per month, plus a $599 equipment cost. Corporate customers will pay a service fee of about $500 per month with a $2,500 equipment cost.

By the end of 2024, the Starlink Mini package, with equipment priced at $599 and monthly rates ranging from $50 to $165, was introduced. The compact device can be carried in a backpack and allows for a 30-day trial without requiring a contract.

Starlink is a satellite Internet project developed and deployed by SpaceX since 2019. SpaceX has launched about 30,000 satellites into low Earth orbit, creating a network that covers the globe.

Starlink satellites are designed to broadcast broadband Internet from space to Earth. Currently, Starlink services are available in 116 countries and territories, with over four million subscribers globally.

To comply with national defense and security regulations, SpaceX is required to establish a ground gateway station within Vietnam, ensuring that all data traffic from Vietnamese users passes through this domestic gateway and integrates into the national telecommunications network.

The pilot program will run for five years from the date the company established by SpaceX receives its operating license and must conclude before January 1, 2031.

During a meeting with Vietnamese Prime Minister Pham Minh Chinh in September 2024, Tim Hughes, senior vice-president for global business and government affairs at SpaceX, said SpaceX was ready to invest and provide Starlink satellite Internet services in Vietnam, specifically in education, training, and disaster prevention.

SpaceX suggested Vietnam prepare the necessary infrastructure and conditions to ensure the projects success and contribute to achieving 100 percent internet coverage for the population.

Thanh Ha - Duc Thien - Cong Khai / Tuoi Tre News

(2025/04/01-17:55)