The total telecom services revenue in Vietnam is expected to increase at a compound annual growth rate (CAGR) of 2.6 per cent during 2024-2029, led by growth in mobile data and fixed broadband segments, reports GlobalData, the data and analytics company.

GlobalData’s Vietnam Telecom Operators Country Intelligence Report reveals that the mobile voice service revenue will decline during the forecast period, due to the free bundling of voice minutes by MNOs into their mobile plans, rising user preference for OTT/internet communication services and the subsequent decline in mobile voice ARPU levels.

Mobile data service revenue, on the other hand, will continue to increase at a robust CAGR of 9.7 per cent over the forecast period, driven by the rising mobile internet subscriptions, growing 4G subscriptions and projected increase in adoption of higher ARPU-yielding 5G services. The expansion of digital and video streaming services will encourage subscribers to sign up for premium data plans, which will in turn drive revenue growth.

Srikanth Vaidya, Telecom Analyst at GlobalData, commented: “4G services accounted for a majority share of the overall mobile subscriptions in 2024 in Vietnam and will remain the leading mobile technology through 2029 thanks to the continued expansion of 4G/LTE network in the country.”

However, 5G subscriptions will increase at a faster pace over the forecast period, driven by growing demand for high-speed connectivity services in the country and improving availability of 5G services thanks to the telcos’ 5G network rollout initiatives, and the government’s 5G coverage expansion plans. For instance, Vietnam’s digital infrastructure strategy aims to expand 5G network coverage to 99 per cent of the population by 2030.

In the fixed communication services segment, fixed voice service revenue will increase marginally at a CAGR of 0.7 per cent, mainly supported by the growth in VoIP subscriptions. Fixed broadband service revenue will grow at a CAGR of 1.8% over 2024-2029 period, driven by growth in the adoption of relatively higher ARPU-FTTH services.

Growing demand for higher-speed broadband connectivity and the expansion of fiber-optic network infrastructure by the government across the country will support fiber broadband subscriptions’ growth over the forecast period. Vietnam plans to expand fiber internet infrastructure to 80 per cent of households and 100 per cent of communities by the end of 2025.

Vaidya concluded: “Viettel led the mobile services segment, in terms of subscriptions in 2024 and will continue to hold the top position throughout the forecast period as the operator has been at the forefront of 5G deployment and even launched the World’s first open RAN (ORAN) 5G network in November 2024, utilising locally developed equipment and Qualcomm Technologies’ 5G RAN platforms.

“VNPT topped the fixed voice and fixed broadband segments. In the fixed broadband segment, VNPT will maintain its leadership through to 2029, driven by its strong presence in the FTTH sector, and multi-play bundling comprising fixed broadband, mobile, and TV services. For example, VNPT provides triple-play bundled offerings through its ‘GOI Home’ and ‘Home GIAI TRI’ plans to attract customers by offering more value and better services.”

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Categories: 5G, Articles, Broadband, FTTH, Markets, Research, Telco

Tags: 5G, FTTH, globaldata, Vietnam