[Asia Economy Reporter Hyungsoo Park] Mercury is showing strong performance. The news that the government will supply unlicensed 6GHz band frequencies enabling 5G-grade Wi-Fi, which is five times faster than existing Wi-Fi, appears to have influenced the stock price.
As of 10:11 AM on the 26th, Mercury is trading at 10,950 KRW, up 10.49% from the previous day.
The government expects related small and medium-sized enterprises to create new business opportunities in various fields such as 6GHz band Wi-Fi device terminals, content, and games by establishing the world's first technical standards connecting 6GHz band Wi-Fi and 5G. Smartphone manufacturers plan to maintain global technological competitiveness by proactively launching smartphones equipped with Wi-Fi 6E.
The Ministry of Science and ICT announced the day before that it has finalized plans to supply the 6GHz band as unlicensed frequency and will issue a public notice for the revision of related technical standards.
The Ministry explained, "We have established the world's first technical standards for device-to-device connection to create innovative services through the expansion of 5G communication, such as connections between 5G phones and augmented reality (AR) and virtual reality (VR) glasses devices. Since mobile carriers and broadcasters are already using the 6GHz band for internet supply in island areas and broadcasting content transmission, we plan to supply only the lower 500MHz bandwidth with output restrictions initially."
Researcher Sang-guk Lim of KB Securities said, "We expect Mercury to benefit from the robust growth of the home device market driven by the activation of network infrastructure such as 5G and 10-gigabit internet," adding, "Mercury is the first in Korea to obtain certification from the Wi-Fi Alliance (WFA) for next-generation Wi-Fi 6 routers for telecom carriers."
Mercury is the only company supplying wired and wireless routers to all three major telecom companies, holding a 65% market share as the top company. Mercury announced that it signed a supply contract for next-generation Wi-Fi 6 routers with KT on this day. Through this contract, Mercury will supply Wi-Fi 6 routers (802.11ax AP) worth 13.4 billion KRW. This is the first supply contract for entry-level home devices supplied to domestic telecom companies.
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