Local gateways required for satellite Internet services in Vietnam

In a draft for a decree regarding certain terms of the Law on Telecommunications 2023, the Ministry of Information and Communications said providers must reach commercial agreements with licensed telecommunications businesses in the country.

Vietnamese businesses then must have technical measures to ensure information security, including emergency service suspension upon authorities' request.

"There has to be measures for all data generated by end-devices within Vietnamese territory to go through a ground station (satellite gateway) on Vietnamese territory, and be connected with the public telecommunications network," the draft reads.

Other requirements include a minimum charter capital of VND30 billion ($1.2 million) for the establishment of a fixed or mobile satellite telecommunications network, and a minimum investment into the network of VND100 billion in the first three years.

The information ministry said satellite services can operate as a trans-border service, requiring no technical or commercial presence in the country it provides the services to. They present certain risks, including data leaks and data being illegally collected, leading to network and information security issues.

In Vietnam, VNPT is the only provider with a satellite network, utilizing Very Small Aperture Terminals and the Vinasat broadband satellite network. However, the service offers low connection speed at high costs.

The new telecommunication law is expected to come into effect from July.