After the first six years focused on constructing antennas and TV towers—a pure construction job for revenue and maintaining teams—by 1995, Viettel faced a new opportunity when the government allowed full telecommunications business operations. At that time, Viettel was the only domestic enterprise granted a license. However, the company had no related business activities.
A turning point came two years later when Viettel undertook the historic project of the North-South military fiber optic cable backbone (1A project) for the Communications Command. Opportunities always come with challenges, and this challenge was extremely daunting: a young enterprise needed to solve a problem that even long-established, experienced companies had never attempted before.
Specifically, in Vietnam, at that time, there was only one postal fiber optic trunk with a speed of 34M/s. The 1A backbone had 10 optical fibers along the 500 KV power line from North to South: EVN had four cables but only used two, keeping the other two as backups, and VNPT also had four fibers using a similar approach. Seizing the opportunity, the Ministry of National Defence and the Signal Corps Command actively campaigned and obtained two redundant optical fibers, which were handed over to Viettel for implementation.
However, optical fibers don't mean they can transmit, as each fiber optic trunk requires an average of four fibers to effectively receive and transmit signals. Meanwhile, Viettel had only two fibers. Viettel had to take a risk with single fiber transmission technology, while at that time only the UK had applied it for a route of about 200 km, and no Asian country had deployed it.
"At that time, Viettel's technology engineers were all theoretical; no one had practical experience in building a fiber optic trunk line. Many foreign experts advised us: 'Don't do it yourselves, hire someone else, just stand and watch” Major General Le Dang Dung, former Acting Chairman and General Director of Viettel Group, who directly participated in the project recalled.
But Viettel did not give up so easily. The only option was to find a way to transform the impossible into the possible.
The company worked with many foreign partners to provide fiber optic technology to find a solution for a backbone with only two fibers and convinced the Ministry of National Defence's Scientific Council to accept this technology. To prove this, Viettel went to the UK to work with service providers to configure it in the laboratory.
As a military project, it was classified as a national secret, necessitating Viettel to independently design and redesign numerous times. Addressing challenges such as deploying solar panels or explosives in areas lacking electricity was just one example of the many hurdles that needed to be overcome."
In 1999, Viettel completed the 1A military fiber optic cable backbone. The clarity of a call from Ho Chi Minh City to Hanoi, where the signal was pristine, marked a breakthrough after enduring numerous challenges. Viettel achieved a historic milestone as the world's first company to successfully apply wavelength division multiplexing technology on a single fiber optic spanning over 2,300 km.
During the two-year period from 1997 to 1999, Viettel (then known as Sigelco) completed the North-South military fiber optic backbone 1A, utilizing SDH technology for transmission on the same fiber. This marked Vietnam's inaugural military information trunk employing fiber optics, showcasing the application of state-of-the-art and high-speed technology. Additionally, it represented the first trunk line entirely designed and constructed by Vietnamese engineers.
This was the first technological breakthrough in telecommunications that Viettel achieved in such a challenging environment. The 1A backbone was a historic event for Viettel, demonstrating its ability to conquer unprecedented challenges, which later helped Viettel build the largest mobile network system in Vietnam and become the world's only telecommunications provider to manufacture telecommunications equipment, pioneering 5G technology globally.
After the 1A backbone, Viettel achieved further success by providing VoIP long-distance telephone services 178, breaking the telecommunications monopoly that had lasted for decades in Vietnam. And just as this service was still generating huge revenue, Viettel's leadership set higher goals: Viettel had to provide mobile services.
Two decades ago, owning a mobile phone was considered a sign of wealth due to the high cost of purchase and use, beyond the reach of most people. Viettel's dream of "Every Vietnamese owning a mobile phone" seemed unrealistic, as Viettel faced financial and technological challenges.
But as with the lessons from 1A and VoIP, Viettel understood that within difficulties, opportunities lay.
Financially, due to the downturn in international telecommunications, partners agreed to allow Viettel to purchase 5,000 base stations, paying in installments over four years. Once the financial issues were settled, Viettel quickly addressed the technological challenge, urgently entering business operations to recover capital.
If following the sequential process as foreign experts designed would have not only been costly but would also have extended the time to develop the network of 5,000 base stations, leading to delays in market share acquisition and almost equating to failure. Responding to the call: "Accelerate, accelerate more! Innovate, innovate more!", Viettel understood that to succeed, it needed to find other breakthroughs.
Viettel standardized typical designs for various terrains such as the Mekong Delta, Red River Delta, mountains, and islands, reducing hundreds of stations across different locations to only 5-6 types.
They implemented principles of frequency hopping and grid-eyed station designs, placing stations every 800 meters, with a density of 400 meters where subscriber concentrations were high. Lieutenant General Hoang Anh Xuan, Viettel's former CEO, introduced the concept of "network standardization", including standardized antenna pole designs and installation standards for BTS Viettel.
With these grid and frequency hopping principles, Viettel streamlined the planning and design of mobile networks, enabling the deployment of thousands of stations in just one day instead of over many years. This approach not only saved costs but also facilitated technology mastery and ensured high-quality service.
"Because we developed everything internally, we were able to master the technology, instilling national pride and driving numerous initiatives for improving network design, construction, and operation" said Lieutenant General Hoang Anh Xuan.
On October 15, 2004, Viettel officially launched its mobile network with the prefix 098. Within less than a year, the subscriber base reached one million—a growth rate that previous networks took more than a decade to achieve. Within 12 months, Viettel rapidly gained market share, outpacing competitors.
On October 15, 2004, Viettel officially launched its mobile services with a wide coverage, strong signals, and affordable rates. Applying innovative solutions in technology and business, Viettel rose to become the leading telecom company in Vietnam within 4 years, contributing significantly to the widespread adoption of mobile services and increasing mobile phone penetration from 4% to 100% among the population.
Within just 2 years, Viettel deployed more stations than all other networks combined had in the previous decade, boosting Vietnam's mobile phone density from 4% in 2007 to the current 130%.
Mobile services, once considered a luxury, now became essential, serving social needs and the public. Behind this transformation was Viettel's complete independence in design, operation, exploitation, and the introduction of cutting-edge technologies.
Numerous factors contribute to Viettel's consecutive successes in Vietnam's telecommunications expansion phase. However, at its core lies agility, always moving forward, combined with determination and innovation that enabled a latecomer in the industry to surpass others in both technology and business.
As emphasized by Mr. Do Trung Ta, former Minister of Posts and Telecommunications: "Technology develops very quickly. What you consider a complete victory today may not necessarily be so next year. This demands visionary leadership. I believe flexibility and broad vision are crucial, and that is a triumph for Viettel".
Throughout its 35-year development journey, Viettel has achieved several milestones, yet its ambition to conquer new peaks and pioneer new technological breakthroughs remains unabated.
Following the expansion of mobile services, Viettel became the top telecom provider in Vietnam and expanded its presence in many international markets. Viettel continues to aim higher by mastering the technology for manufacturing telecommunications equipment and participating in high-value segments of the global technology supply chain.
"Viettel has never rested on its laurels, and its people have never been complacent with being number one. Every generation, every stage, we carve our own paths, and thus, we continue" - Major General Tao Duc Thang, Chairman and General Director of Viettel emphasized .
With its 4G infrastructure, Viettel has fully mastered the entire 4G telecommunications technology ecosystem across all three network layers (core network, transmission network, access network) with virtualization and distributed data storage technologies.
In the 5G network infrastructure, Viettel has also fully mastered the entire 5G technology ecosystem, including wireless access devices, transmission devices, and core network systems.
In the semiconductor sector, Viettel's 5-year strategy for the 2021-2025 period aims to research and engage in semiconductor chip development, targeting the mastery of semiconductor chip design by 2025.
Currently, most chip companies in Vietnam rely on existing designs created by other companies, but Viettel has chosen a different path. Viettel manufactures 5G chips aligned with its mission in telecommunications and information technology, with a rare advantage in researching 5G chips by conducting trials on its own network.
"The challenge is great, but it is also an opportunity because it represents the future, as well as an opportunity for Viettel and Vietnam. Overcoming challenges and achieving mastery will drive development.
In the future, Viettel will research and participate in building chip fabrication plants and subsequently develop surrounding service systems" Mr. Nguyen Dinh Chien, Deputy General Director of Viettel, who directly oversees and is responsible for Viettel’s scientific and technological activities, research and equipment production, intellectual property management, and innovation initiatives, shared.
Viettel has upgraded its chip design research unit to directly report to Viettel, setting directions and solutions for Viettel's participation in the semiconductor industry with two main focuses.
Firstly, Viettel focuses on developing chip lines based on Viettel's strengths such as telecommunications (5G, 6G), dual-use chips (civilian and defense).
The second focus is chip manufacturing, ensuring alignment with the national semiconductor industry development strategy.
As a result, Vietnam has entered the 5G era with a complete system of infrastructure devices bearing its own national identity. Furthermore, in 2023, Viettel's fully developed 5G Private network was exported to India, a country known for its rapid technological development and large population.
In October 2023, Viettel announced its complete mastery of the 5G DFE chip, capable of processing 1,000 trillion calculations per second.
These events open up opportunities to transform the telecommunications infrastructure equipment industry by reducing costs and eliminating dependence on exclusive equipment manufacturers worldwide.
From here, Viettel will continue to ascend to new heights in its journey towards technological autonomy, advancing further in national security and safety, and laying the groundwork for accelerating research and conquering new products such as chips for AI, IoT...
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