[Preview of Science and ICT Committee Audit②] 5G '28GHz' Deployment Stalled... Criticism of Policy Failure

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[Asia Economy Reporter Seulgina Jo] The status of the deployment of 28GHz 5G base stations, commonly referred to as the 'real 5G,' is also expected to be a key agenda item in the IT and telecommunications sector at this year's National Assembly Science, Technology, Information and Broadcasting and Communications Committee (STIBC) audit.

As the three mobile carriers have effectively abandoned the base station deployment they promised at the time of frequency allocation, related questions are expected to intensify, accompanied by growing criticism labeling the policy as 'flawed.' It is being evaluated that it is time to discuss changes in government policy on 28GHz 5G, considering market realities.

According to the industry on the 21st, the total number of 28GHz 5G base stations that SK Telecom, KT, and LG Uplus are obligated to build by the end of the year is 45,125 units, but as of the end of June, only 125 units had been deployed. This falls far short of the number promised to the government at the time of frequency allocation. It effectively means the base station deployment plan has been abandoned.

The 28GHz band has a short radio wave reach, requiring many base stations to be installed, which is challenging. Due to low concrete penetration rates, its usability in urban areas is also limited. This is why the nationwide deployment of 28GHz, which the government previously promoted as '20 times faster than LTE,' is realistically considered difficult.

Instead of nationwide deployment, telecom companies argue for B2B applications such as smart factories and smart farms within industrial complexes, but the B2B business model is still understood to be in an immature stage. This is the background behind the responsibility debate accusing the government of failure in frequency policy regarding the commercialization of 28GHz 5G.

In the National Assembly, evaluations labeling the policy as flawed continue. Assemblyman Byeon Jae-il of the Democratic Party of Korea pointed out at the confirmation hearing of Science and ICT Minister nominee Im Hye-sook, "If we are forced to build a 28GHz 5G network when there are no devices that can utilize 28GHz, the cost of network construction will increase, which could lead to higher consumer fees." He emphasized the need to revise the policy, stating, "28GHz B2C 5G is not a target for activation but for re-examination."

Assemblyman Yoon Young-chan of the same party also questioned, "Isn't the government forcing this because of the promise to activate 28GHz services?" and asked, "Is it right to keep pushing for investment?" Earlier, Park Sung-joong, the STIBC floor leader of the People Power Party, said, "The reason telecom companies do not invest despite losses of thousands of billions of won is that it is like 'pouring water into a bottomless jar,'" adding, "Even if you twist the arms of telecom companies, it is difficult to procure 28GHz frequency equipment."

However, despite this situation, the 28GHz policy direction has not been revised. The Legislative Research Office reported, "The Ministry of Science and ICT announced plans to promote pilot projects for 28GHz activation and subway Wi-Fi demonstration projects," but added, "There is still no plan to revise the target of deploying 15,000 units by 2021."

Accordingly, it is expected that the upcoming audit next month will also highlight the need for detailed policy formulation that considers the frequency allocation process and technological levels. It is explained that feasible installation obligation standards must be established by reviewing the characteristics of the frequency band at the time of allocation, current technology levels, and installation feasibility.

However, criticism also arises that the policy should not become a hasty measure favoring operators. Some argue that since the base station deployment deadline has not yet passed, the three telecom companies need to actively invest in the ‘real 5G’ facilities, which have the largest frequency bandwidth, speed, and data processing capacity.

The Legislative Research Office emphasized, "Future policy directions, including the feasibility of nationwide 28GHz network installation and frequency utilization plans based on that feasibility, must be carefully reviewed and clearly established."

Additionally, this year's STIBC audit is expected to discuss major issues such as the recent platform monopoly concerns, the unprecedented broadcast suspension incident stemming from the conflict over paid broadcasting content fees between CJ ENM and telecom companies, measures to protect internet platform users, the concentrated market situation of MVNOs dominated by subsidiaries of the three telecom companies, and the establishment of AI ethics frameworks highlighted by the Iruda incident.