Starlink is difficult to create great competitive pressure in the early stages

HẠO THIÊN |

According to the Telecommunications Authority (Ministry of Science and Technology), low-altitude satellite service Starlink has little ability to compete with fixed services.

Dịch vụ Internet vệ tinh của Starlink được cấp phép thí điểm tại Việt Nam. Ảnh: Lưu Quý
Starlink's satellite Internet service is licensed for piloting in Vietnam. Photo: Luu Quy

Starlink service for individual users in Vietnam is expected to be priced at 435 USD in the first month. This fee includes about 350 USD to buy a terminal set and 85 USD in usage fees. From the second month, users pay about 85 USD, equivalent to about 2.2 million VND per month to maintain connection.

After Starlink service was licensed by the Ministry of Science and Technology to be piloted in Vietnam, the question is if Starlink businesses lower service prices, how will direct competition with domestic telecommunications businesses take place.

Answering this issue, Mr. Nguyen Anh Cuong - Deputy Director of the Telecommunications Authority (Ministry of Science and Technology) said that after being licensed, Starlink enterprises must comply with regulations on price management and competition like other telecommunications enterprises. Service pricing must ensure publicity, transparency and compliance with regulations on competition in the market.

Ông Nguyễn Anh Cương - Phó Cục trưởng Cục Viễn thông (Bộ Khoa học và Công nghệ) cho biết,
Mr. Nguyen Anh Cuong - Deputy Director of the Telecommunications Authority (Ministry of Science and Technology) said that after being licensed, Starlink enterprises must comply with regulations on price management and competition like other telecommunications enterprises. Photo: Hao Thien

The Deputy Director of the Telecommunications Authority also informed that Starlink Services Vietnam Co., Ltd. has been granted 2 telecommunications service provision licenses with network infrastructure to pilot services using low-altitude orbit satellite technology in Vietnam.

According to Mr. Cuong, the maximum number of subscribers in the pilot phase is 600,000 subscribers, equivalent to about 2.5% of the total number of existing fixed broadband subscribers. With this scale, low-altitude satellite services are less likely to directly compete with fixed and mobile broadband services that domestic businesses are providing.

Regarding concerns that if Starlink reduces prices for competition, management agencies emphasize that they will strengthen supervision in case businesses adjust prices, especially if price reductions show signs of unfair competition. At that time, legal regulations on prices and competition will be applied for timely handling.

The management agency ensures that businesses operate on the same legal basis, maintain a level playing field and promote the healthy development of the market," emphasized a representative of the Telecommunications Authority.

HẠO THIÊN
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