Starlink to supplement, not replace, Internet networks in Vietnam: experts

"Starlink can offer value in Vietnam, but its role will be supplemental rather than replacing existing domestic connectivity services," Affandy Johan, an analyst at Ookla, the company behind Speedtest and Downdetector, told VnExpress.

Elon Musk’s SpaceX has received a license to trial Starlink in Vietnam, and is now wrapping up regulatory procedures. Once operational, Vietnam will become the fourth Southeast Asian country with Starlink access after the Philippines, Malaysia and Indonesia.

Johan pointed out that Vietnam has rapidly expanded its fiber-optic and mobile networks in recent years. Over 70 million people now have Internet access, and all three major carriers, Viettel, VNPT and MobiFone, have rolled out 5G.

According to Ookla’s latest Speedtest report, Vietnam ranks 35th globally in fixed broadband speed with 164.77 Mbps and 19th in mobile Internet with 144.5 Mbps.

Starlink satellite Internet receivers on display in Hanoi, October 2023. Photo by VnExpress/Luu Quy

Cost remains a key barrier for satellite Internet adoption.

"Although Starlink’s pricing is improving, it may still be out of reach for many rural households without subsidies," Johan said. "Meanwhile, domestic mobile providers offer competitive 4G and 5G plans, making them more attractive in well-connected areas."

The Ministry of Information and Communications reported last year that 4G coverage reached 99.8% of the population. The government’s digital infrastructure strategy targets 99% 5G coverage by 2030.

Doan Quang Hoan, vice chairman of the Radio and Electronics Association of Vietnam, said Starlink could offer major benefits by quickly covering coverage blackspots, areas of poor or no communication across the country.

But it would have no major impact since these areas are not many in number and are mostly located in mountainous regions or islands without access to the national power grid, he said.

In early April Minister of Science and Technology Nguyen Manh Hung tasked the Department of Telecommunications with promoting digital infrastructure development, including satellite Internet, to extend connectivity to remote regions.

Experts say this is where satellite services bring the most value, reaching underserved areas, while also providing backup during natural disasters when ground networks fail. The core value of Starlink in Vietnam and across Southeast Asia lies in its ability to overcome geographic limitations, Johan said.

"[It is] well suited to the country’s mountainous and coastal regions."

In Indonesia, satellite Internet has been crucial for remote islands and used in telemedicine, he said. In Japan, Starlink supports private 5G networks at construction sites in mountainous terrain.

"Satellite Internet like Starlink will not replace existing networks but provide an important layer of connectivity," Johan said.

"This layered approach helps Vietnam close the digital divide in a practical and scalable way."

On March 23 the government granted SpaceX approval to trial Starlink in Vietnam under controlled conditions.

The trial has to be completed before Jan. 1, 2031. A maximum of 600,000 subscribers can be signed up and the project has to comply with national defense and security requirements.

All traffic generated by satellite users in Vietnam must be routed through the local gateway and connected to the country’s domestic telecom network. User data must also be stored in Vietnam, and service providers must comply with cybersecurity requirements, including preventing the spread of malware and harmful content.