In June 1989, the Electronics and Information Equipment Corporation (Sigelco) – the predecessor of Viettel – was established with only ten soldiers working in a small house on Cat Linh Street in Hanoi.

Initially, the ambition to manufacture electronic equipment had to be set aside. The company's immediate priority was to survive. The soldiers-turned-entrepreneurs first found work installing cables and poles for the post office and television stations.

Every beginning was difficult, and opportunities were scarce. Projects involving high buildings, installing communication hubs, or constructing microwave lines that no other company would undertake due to their difficulty became Sigelco's opportunities. These high building projects in challenging terrains, on mountain peaks, or in dense forests established the company’s name in domestic telecommunications construction. This period also marked the birth of the dream to build their own telecommunications infrastructure, setting the foundation for many of Viettel's future goals and aspirations.

The legendary "1A backbone"

In 1995, Viettel was the only Vietnamese company licensed to provide all telecommunications services. However, the company had no business operations.

The turning point came in 1997 when Viettel boldly took on its first major project: designing and implementing the 1A optical cable backbone for the Communications Command. The construction of this backbone is based on 2 fiber optic cables on the 500 kV North-South power line granted by the government.

The challenge was that an optical backbone required four fibers: one for receiving, one for transmitting, and two for backup. This backbone, dedicated to the military, demanded high security and had to be built without foreign experts’ participation.

To succeed, Viettel had to develop a new technique to send and receive signals on the same fiber over more than 2,300 km. This problem was deemed unsolvable, as no company had ever done it. For a young, inexperienced company like Viettel, the difficulty was magnified.

Breaking the telecommunications monopoly in Vietnam

A year later, Mr. Mai Liem Truc, the General Director of the Post and Telecommunications General Department, signed a decision allowing Viettel to be the first in Vietnam to trial VoIP long-distance calling services. This marked a significant milestone in Viettel's development.

Recalling that moment, Mr. Mai Liem Truc said emotionally, "When I met Viettel's leaders at that time, I clearly saw the soldiers' ambition, dedication, and vision. This gave the General Department of Post and Telecommunications great confidence in relying on Viettel to innovate and transform Vietnam’s telecommunications industry. This is why we licensed Viettel to provide VoIP Internet phone services and granted GSM mobile frequencies for mobile services."

VoIP was a new type of telecommunications service, requiring low investment but offering affordable long-distance calling.

The biggest challenge was that the service had to rely on the partner's fixed-line network and their entire customer base. The difficulties didn’t stop there; after negotiating equipment purchases, Viettel's contract was canceled right before the planned launch. To avoid delays, Viettel borrowed old equipment from a Singaporean company.

Once again, the soldiers' self-reliance and determination enabled Viettel engineers to provide the service on schedule.

"I knew it would be a historic night. Few understood this at the time," Mai Liem Truc recalled.

Indeed, VoIP’s introduction revolutionized phone call pricing. The domestic telecommunications industry became competitive, moving away from a monopoly, giving the public more choices.

"VoIP 178 - Your savings code" quickly became popular as long-distance call rates dropped significantly, with domestic long-distance rates falling by over 2.65 times and international rates nearly sixfold.

Revenue from VoIP gave Viettel a $10 million capital (a substantial amount for Viettel at the time) to invest in mobile networks, becoming a springboard for Viettel’s miraculous leap forward. More importantly, Viettel’s progress inspired other companies, ushering in an era of affordable telecommunications in Vietnam, with other carriers also investing in new infrastructure and technology.

This event marked Viettel’s transition from a "contractor" to an "owner." "To get rich, you have to own, and from VoIP, Viettel officially owned, creating a miracle," said Mr. Phan Huu Vinh, former Chief of Office.

After achieving this milestone, Viettel didn’t rest on its laurels but quickly began popularizing mobile services for the Vietnamese public, then gradually built 3G, 4G, and 5G networks, keeping up with modern technology trends.

The unforgettable stories of the tough startup days, the 1A backbone, and VoIP services are like a hinge, opening the way for future Viettel generations who know how to progress through self-reliance and continuous innovation.