Vinasat

Vietnam has become a promising destination for investors in the Information and Communication Technology (ICT) industries. Vietnam is putting considerable effort into modernizing and expanding its telecommunications systems, although its performance continues to lag behind that of its neighbors in the region. The telecommunications industry continues to be among the top priorities for development by the Government of Vietnam.

Annual growth in the telecommunications sector is running approximately 25%. In the period 2005-2006, Vietnam's ICT growth rate has been double the average in the Asia region and triple the world average expansion rate. In the first 9 months of 2006 alone, the number of new phone subscribers in Vietnam was double the total number of subscribers for the period 1975-2000.

In Vietnam's "Strategy for Development of ICT Industries to 2010 with Orientation to 2020", it is predicted that by 2010 Vietnam's ICT industries will achieve an annual growth rate of 20-25% and annual revenue of $6-7 billion, and new telecom entrants (non-VNPT - the dominant stated-owned provider) will achieve a 40-50% market share.

In the past, Vietnam's telecommunications industry was partially opened to foreign telecommunication companies, but mainly as suppliers of equipment and finance in the building of network infrastructure for transfer to Vietnamese local operators. However, with Vietnam's accession to the WTO, limitations on foreign companies providing telecommunications services will be relaxed, resulting in increased competition.

As of 2005 there were six telecommunications infrastructure operators in Vietnam, of which two are regional with geographical restrictions on their operations and another with only the ability to provide maritime communication services. Almost all Vietnamese telecommunication companies are state-owned enterprises with minor private investment, and there is cross ownership among carriers. Vietnam Post and Telecommunications (VNPT) is a major SOE operating in almost all telecommunications fields except for maritime telecommunications, and holds approximately 94% of the market. Viettel is under the Ministry of Defense, and provides fixed line, long distance and IP-based telecommunications services as well as lease lines, and mobile communications. EVN Telecom, wholly owned by the State-run Electricity of Vietnam Group, also provides fixed line, long distance and IP-based telecommunications services, lease lines, and mobile communications. Vishipel is a 100% owned subsidiary of Vietnam Maritime Corporation that provides marine communications services. SPT is the first enterprise to be equitized with a number of large shareholders including VNPT, which holds 18% of the total shares. Hanoi Telecom is the first telecom carrier with private investment, and this company provides services for fixed lines limited to Hanoi areas only and long distance and IP-based telecommunications, lease lines, and mobile communications. Among the licensed telecom operators, VNPT is still the dominant player accounting for 94% of fixed telephone market share and 72% of cell phone market share.

In early 2006 three satellite giants -- Alcatel's Alenia Space, Lockheed Martin Commercial Space Systems and Sumitomo -- submitted bids for building Vietnam's first satellite, worth about $200m.

In May 2006, US-based Lockheed Martin and Vietnam Post and Telematics (VNPT) held a signing ceremony to award the U.S. firm a $168 million contract to supply Vietnam's first communications satellite. Including ground facilities, the total project was expected to cost $230 million. The satellite will be manufactured in Lockheed's Pennsylvania facility and will be launched in two years, providing roughly 15 years of service. Vinasat will be a geostationary satellite, employing eight C-band channels and 12 Ku-band channels to provide broadcast and telecommunications service (video, data, voice) to the Asia-Pacific region. With the launch of its first telecom satellite scheduled for 2008, Vietnam expected to save tens of millions of dollars each year paid by Vietnamese state-owned firms to foreign satellite operators for use of international channels.

VINASAT-1 is based on Lockheed Martin's A2100A spacecraft platform and represents the first satellite system ever procured by the nation of Vietnam. VINASAT-1 features 12 operating Ku Band transponders providing coverage over Vietnam, Laos, Cambodia, Thailand and part of Myanmar. The spacecraft also features 8 C-Band primary transponders providing coverage over Vietnam, Cambodia, Laos, Southeast Asia, India, Japan and Australia. VINASAT-1 is designed for a minimum service life of 15 years and will be located at orbital slot 132 degrees east.

The turnkey satellite system is expected to improve telecommunications in Vietnam by transmitting radio, television and telephone communications to all corners of the country. The spacecraft will enable state-of-the-art communications, providing the Vietnamese people the opportunity to use multiple new services such as mobile broadcasting, direct- to-home television, video conferencing and data transmission. In addition, VINASAT-1 will improve the nation's communication networks infrastructure by removing dependence on ground networks and allowing 100% of Vietnam's rural communities to be equipped with telephones and televisions.

In addition to VNPT, Lockheed Martin has delivered 18 spacecraft to Asian customers, including eight A2100 satellites. The Lockheed Martin A2100 geosynchronous spacecraft series is designed to meet a wide variety of telecommunications needs including Ka-band broadband and broadcast services, fixed satellite services in C-band and Ku-band, high-power direct broadcast services using the Ku-band frequency spectrum and mobile satellite services using UHF, L-band, and S-band payloads. The A2100's modular design features a reduction in parts, simplified construction, increased on-orbit reliability and reduced weight and cost.

The A2100 spacecraft's design accommodates a large range of communication payloads. This design modularity also enables the A2100 spacecraft to be configured for missions other than communication. The A2100 design is currently being adapted for geostationary earth orbit (GEO)-based earth observing missions and is currently the baselined platform for Lockheed Martin's Geostationary Operational Environmental Satellite Series-R (GOES-R) proposal. The A2100 also serves as the platform for critical government communications programs including Advanced Extremely High Frequency and Mobile User Objective System and is the foundation for Lockheed Martin's Transformational Satellite Communications System (TSAT) offering for the U.S. Government.

VINASAT-1, weighing 2,600 kg at launch, was built by LMCSS in Newton, Pennsylvania, using an A2100A platform. It will be positioned in geostationary orbit at 132 degrees East, and offers a design life exceeding 15 years. Fitted with 12 Ku-band and 8 C-band transponders, VINASAT-1 is designed to provide radio, television and telephone transmission services throughout Vietnam and Asia countries.

After well over a decade of preparations, Vietnam's first satellite, Vinasat-1, was launched successfully at 6:17 p.m. Eastern Daylight Time Friday, April 18, 2008 (5:17 a.m. Vietnamese time Saturday April 19, or 2017 GMT Friday). Vinasat-1 was launched by Arianespace from the Guiana Space Center (Centre Spatial Guyanais, CSG), near Kourou in French Guiana, with the use of a heavy-lift Ariane-5 ECA launch vehicle. By May 2009 businesses and governmental agencies had registered to use 70 percent of Vinasat-1's capacity and by 2010 some expect the entire capacity of Vinasat-1 to be leased out.

VNPT is talking with other companies about launching a Vinasat-2. Infrastructure that would be needed for a Vinasat-2, things such as the satellite control station and surveillance equipment, is expected to be less costly.