5G has emerged as the new focus area for telecom operators and governments across Southeast Asia (SEA). While ministries and regulatory bodies are actively trying to make available the requisite spectrum for 5G services, operators are also making concerted efforts to make their networks future ready, and have been actively testing the technology. Some markets continue to be ahead of others in the game.
A look at the status of 5G development across the SEA region…
Singapore
Singapore has seen rapid advancement on the 5G front. In October 2020, Singtel announced the deployment of its 5G standalone trial network, which utilises 3500 MHz spectrum. A month prior to that, M1 had announced the switching on of its 5G non-stand-alone (NSA) network for existing and new users. Likewise, StarHub is carrying out its NSA 5G trial, which is expected to conclude in February 2021, using 2100 MHz spectrum. These recent trials have taken place on the back of the latest spectrum awards announced by the Infocomm Media Development Authority (IMDA) in June 2020. Earlier this year, the IMDA had assigned 100 MHz of 3.5 GHz spectrum, along with 800 MHz of millimetre wave (mmWave) spectrum each to Singtel and a consortium formed by StarHub and M1. TPG Telecom was awarded the remaining 26 GHz/28 GHz spectrum in the mmwave band to roll out 5G networks on a localised basis.
Thailand
In February 2020, the National Broadcasting and Telecommunications Commission (NBTC) concluded its 5G multiband spectrum auction, raising around $3.2 billion from the sale of 48 concessions for spectrum in the 700 MHz, 2600 MHz and 26 GHz bands. Various operators participated in the auction. They included Advanced Info Service, which secured 23 out of the 49 licences up for auction. True Corporation and its subsidiary True Move H Universal Communication secured 17 licences. TOT won four licences, followed by Total Access Communication and CAT, which won two licences each.
According to the NBTC, adopting 5G in 2020 could contribute 177 billion baht to the economy. This could potentially increase to 332 billion baht in 2021 and 476 billion baht in 2022, if 5G launches are carried out as planned. Further, industry analysts point out that given the immense opportunity presented by the technology, operators are carefully outlining their business strategies so as to extract maximum value from the commercialisation of the technology once an opportunity surfaces and 5G-linked use cases reach a substantial maturity level.
Vietnam
The Vietnamese government is planning to allocate the requisite spectrum for 5G to telecom operators. Several leading telecom players have already started mobilising their resources to launch 5G services by the end of 2020. Further, there is a strong buzz around the indigenous development of 5G chipsets in the country.
As far as spectrum allocation is concerned, the Ministry of Information and Communications (MIC) of Vietnam is reportedly planning to allocate the 700 MHz and 1800 MHz bands for 5G deployment. In addition, the MIC is reportedly considering auctioning the 24.25 GHz to 27.5 GHz frequency bands for 5G use in 2021. Earlier, the MIC had put the 2.6 GHz band, which is currently being used to provide 4G services, up for auction; it will eventually be used to launch 5G services. More recently, in August 2020, the MIC announced the official frequency planning, which has been regarded by many as a great leap in Vietnam’s 5G development road map.
Various telecom operators such as Viettel, FPT and Vingroup are working towards developing domestically produced 5G chipsets, which can be deployed across their networks. In fact, in July 2020, Viettel launched its domestically manufactured 5G base stations and announced that it was going to pilot its commercial 5G coverage by deploying these base transmission systems across the network. The telco has stated that by June 2021 it will deploy 5G microcells across its entire network.
While Viettel has made considerable progress in the 5G domain, other telecom operators are not far behind. For instance, MobiFone, which had received its 5G service deployment licence in April 2019, has been actively carrying out 5G trials across Hanoi, Da Nang, Hai Phong and Ho Chi Minh City in collaboration with various global vendors. Further, in March 2020, MobiFone announced that following the success of its 5G trials across various cities, it will soon initiate nationwide 5G coverage. In fact, MobiFone’s 5G test licence recently got extended to May 2021, following which the operator has now begun the second phase of its 5G network trials, which will focus on the modernisation of the operator’s existing infrastructure and the introduction of pilot services across its telecom circles. Going forward, MobiFone is planning to commercialise its 5G service once its official licence arrives, which is expected to be granted in early 2021.
In addition to Viettel and MobiFone, state-owned Vietnam Posts and Telecommunications Group (VNPT) has been vigorously pursuing its 5G ambitions. In April 2020, VNPT carried out successful 5G trials in Hanoi and Ho Chi Minh City.
Given the rapid progress that Vietnam is making on various fronts in the 5G domain, several analysts have predicted that the country may emerge as one of the first in the world to successfully roll out 5G services for commercial use.
Malaysia
Despite its strong ambitions, the Malaysian government has decided to drop its 5G spectrum allocation plan for the time being. This development coincided with the launch of the Jendela Plan in the country in August 2020, which is focused on expanding existing 4G coverage and increasing mobile broadband speeds. Consequently, the deployment of 5G technology in Malaysia has been shifted to early 2023.
The Jendela Plan is expected to remain operational from 2021 to 2025. The plan has three main goals – expansion of 4G mobile broadband coverage from 91.8 per cent to 96.9 per cent in populated areas, increase in fixed broadband speeds from 25 Mbps to 35 Mbps, and enablement of 7.5 million premises with gigabit fixed broadband access.
Under the first phase of the new plan, the government will focus on prioritising the upgradation of broadband and 4G, and the shutting down of 3G by the end of 2021. Following this, under the second phase, which is expected to start in 2022, the country will begin to transition to 5G.
Indonesia
Indonesia is lagging behind its SEA neighbours in the 5G race. While several other countries in the region have already initiated 5G launch procedures, roll-outs in Indonesia are still some way away. As per the Oxford Business Group, 5G is expected to debut in Indonesia only by 2022.
The unavailability of appropriate spectrum is a key reason for the delay in roll-out. As per industry and government estimates, there is a requirement of at least 2042 MHz of spectrum frequency by 2024 for 5G to become a reality in the country. In contrast, at present, Indonesia has only 737 MHz of spectrum available for mobile, around one-third of what is required. Thus, the government will have to soon make available around 1,310 MHz of spectrum in order to make networks 5G ready.
According to MTN Consulting, the ministry should vacate the 3.3-3.4 GHz band for 5G. Likewise, the GSMA is of the view that the Indonesian government should release 700 MHz spectrum and make it available to telcos for 5G. As per the research firm, doing so would support the government’s efforts to expand coverage across the country and help narrow the digital divide. Meanwhile, the Oxford Business Group believes that the government should provide spectrum between 80 MHz and 100 MHz continuously for each operator in the main band, and about 1 GHz for each operator in the mmWave band.
While the spectrum band to be made available for 5G is yet to be decided, the Ministry of Communication and IT is believed to be in favour of vacating the 3.5 GHz middle band that is currently reserved for satellites.
Future outlook
The SEA region is on the cusp of an enormous 5G opportunity. According to a recent study carried out by Kearney, 5G can potentially boost consumer revenue and enterprise revenue across the region by 6-9 per cent and 18-22 per cent respectively before 2025. This is because operators are expected to invest over $10 billion in infrastructure during this period.
As the region continues to push forward with its 5G ambitions, the leaders in this race will be determined largely by the country’s policy environment. Clearly, governments and policymakers need to adopt an approach that is investment and innovation friendly in order to make 5G a reality.
By Diksha Sharma
