[2021 National Audit] Top 3 Mobile Carriers Say "Difficult to Achieve 28GHz Base Station Deployment Goal Within the Year"

[Image source=Yonhap News]

[Asia Economy Reporter Koo Eun-mo] Minister Lim Hye-sook of the Ministry of Science and ICT reaffirmed her stance not to postpone the mandatory deployment deadline for the so-called 'real 5G' 28GHz 5G base stations, while mobile carriers expressed that it is realistically difficult to achieve the deployment target within this year.

At the comprehensive audit of the Ministry of Science and ICT held on the 20th at the National Assembly's Science, Technology, Information and Communications Committee (STICC), Representative Park Sung-joong (People Power Party) asked the three mobile carriers whether they could meet the 28GHz base station deployment target allocated for this year. Kang Jong-ryeol, Head of SK Telecom ICT Infrastructure Center, responded, "It is difficult," and Kwon Jun-hyuk, Head of LG Uplus Network Division, also said, "It is realistically difficult."

According to the Ministry of Science and ICT's mandatory 5G network deployment policy, the three carriers must build 45,000 28GHz band 5G base stations by the end of this year. However, as of the end of August, the number of 28GHz band 5G base stations deployed by the three carriers was only 161, resulting in a compliance rate of 0.3% for the mandatory deployment.

The 28GHz band has a short radio wave reach, requiring many base stations to be installed. Due to low concrete penetration, 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. While carriers argue for B2B uses such as smart factories and smart farms within industrial complexes instead of nationwide deployment, the B2B business models are still understood to be in an immature stage.

On the same day, Representative Yang Jeong-sook (Independent) asked about the plan and measures to achieve the target within the year, stating, "If the 28GHz base station deployment is not fulfilled within the period, 620 billion KRW will not be refunded according to the Radio Waves Act, and if such investment funds are confiscated, it could constitute criminal liability for breach of duty to shareholders."

In response, Kang Jong-ryeol, Head of SK Telecom ICT Infrastructure Center, said, "We are forming a dedicated internal team to expand usage through business-to-business (B2B) transactions related to the 28GHz base station deployment by the end of the year," adding, "Realistically, we will additionally expand B2B sites along with the government-led subway Wi-Fi backhaul enhancement and ongoing efforts." He also added, "We will do our best to meet the mandatory requirements set by the government."

Kwon Jun-hyuk, Head of LG Uplus Network Division, said, "Regarding the 5G 28GHz base station deployment, the three carriers are likely in similar situations," and added, "We will try our best to find business models in the B2B sector and refer to government ideas." Lee Cheol-gyu, Head of KT Network Division, also responded, "I have a similar view."