The total number of 5G subscriptions in Southeast Asia is expected to reach 227 million by then, the U.S firm said at an event in Hanoi Thursday. Cisco was citing figures from a report prepared by American global management consulting firm A.T. Kearney.

According to the report, Indonesia will take the lead in 5G subscriptions by 2025 with over 100 million subscribers, followed by Thailand, the Philippines, Malaysia, Myanmar, Vietnam, Singapore, Cambodia, Laos and Brunei.

By 2025, Vietnam will be placed sixth in Southeast Asia for
the number of 5G subscriptions. Graphics by A.T. Kearney.

Naveen Menon, President of Cisco in Southeast Asia, said Vietnamese telecommunication firms could raise their revenue by up to $300 million each year starting 2025, thanks to the 5G service. However, the country would have to invest $1.5-2.5 billion in infrastructure in the 2020-2025 period for launching and operating the 5G service, Menon said.In the ASEAN region, Singapore is expected to lead the way by launching 5G in 2020, followed by Vietnam, the Philippines, Malaysia and Thailand, the report said.

According to A.T. Kearney, 5G "is expected to be a step change from earlier generations."

With high throughput, ultra-low latency and low power connectivity, 5G promises speeds up to 50 times faster, 10 times more responsiveness, and much lower power connectivity than 4G, it said, adding that the time is right for developing 5G service as it arrives at a time when "consumers are using immense amounts of cellular data."

Luong Thi Le Thuy, General Director of Cisco Vietnam, said: "Vietnam so far has been attractive for low-cost labor, especially in key sectors like manufacturing and processing. But this will no longer a strong point in the age of Industry 4.0 and Vietnamese firms should be aware of this and make good use of new technologies, including applying the 5G service."

In Vietnam, telecom giant Viettel broadcast its first 5G network in September from its network of 5G base stations in the nation's economic hub Ho Chi Minh City.

The 10 stations will be used by Viettel, the nation’s largest telecom firm, to comprehensively check and assess its 5G service before launching it commercially next year.

Military-run Viettel installed the first 5G station in Hanoi early this year and made the first 5G phone call in May. It was the first firm in the country to receive permission to trial 5G services in January, followed by MobiFone.

Last November, Information and Communication Minister Nguyen Manh Hung said at a conference that Vietnam should test 5G in 2019 and ensure nationwide coverage by 2020.

"Vietnam should be one of the first countries to launch the network, at least in Hanoi and HCMC," he said. The country had been one of the last in Southeast Asia to roll out 4G services.

5G is said to offer speeds 100 times faster than 4G, primarily used for smartphones and other similar devices. 5G is also expected to support new applications like remote medical procedures and autonomous driving.