SK Telecom Proposes Counteroffer for Additional Frequency Allocation... Ministry of Science and ICT to Announce Position on 27th (Comprehensive)

Disputing "Unfairness" Over Additional 5G Frequency Allocation, SK Telecom Claims "40MHz in 3.7GHz Band Should Also Be Jointly Auctioned," Minister Lim Hyesook Explains at Press Briefing on the 27th

Minister Lim Hye-sook of the Ministry of Science and ICT met with reporters on the 25th at the "Next-Generation Network Development Strategy Establishment Promotion Direction Forum" and stated regarding SK Telecom's proposal for additional frequency allocation, "We need to review it," adding, "I will explain it during the press briefing."

[Asia Economy Reporter Cha Min-young] As the three major telecom companies continue their rivalry over the Ministry of Science and ICT's additional allocation of 5G frequencies, SK Telecom has counter-proposed to the government for 'additional allocation.' They argue that, in addition to the 3.5 GHz band 20MHz frequency, which is unilaterally advantageous to LG Uplus, a total of 60MHz including up to 40MHz in the 3.7GHz and above band should be auctioned simultaneously.

SKT Submits Official Letter to Government

SK Telecom announced on the 25th that it submitted an official letter to the government proposing that other telecom companies, besides LG Uplus, secure 5G frequencies under the same conditions before proceeding with the auction.

In the letter, SK Telecom suggested that, in addition to the 20MHz bandwidth in the 3.5GHz band requested by LG Uplus, the 40MHz frequency (two 20MHz bands) in the 3.7GHz and above band should also be put up for auction together. This stance aligns best with the government's originally stated objectives for frequency allocation: 'customer benefits' and 'investment promotion.'

Previously, the three major telecom companies showed differing opinions regarding the government's additional allocation of 5G frequencies. Among them, LG Uplus is the only one using an 80MHz bandwidth in the 3.5GHz band and requested the government to allocate an additional 20MHz bandwidth, which no longer has interference concerns. Since continuous frequencies are advantageous, rapid utilization is possible without additional investment. SK Telecom and KT have strongly opposed this, arguing it is unfair because "LG Uplus is practically the only company that can participate in the additional frequency allocation."

SK Telecom stated that their proposal for an additional 40MHz allocation would allow all three companies to secure additional 5G frequencies, enabling fair competition and contributing to the benefits of all citizens. They explained that currently, there are no devices supporting carrier aggregation (CA) technology to enjoy these benefits. Samsung Electronics’ ‘Galaxy S22’ devices are expected to have this feature, but users will only be able to benefit from it starting in 2024 when adequate support is available.

An SK Telecom official said, “Allocating 5G frequencies that can equally enhance customer benefits is necessary to create a fair competitive environment. When only one operator receives the frequency that most significantly affects service quality, other operators cannot overcome fundamental quality differences for a certain period despite their efforts and investments. Therefore, we have urgently requested additional frequency allocation.”

Government Deliberates: "Will Explain at Press Briefing on the 27th"

The Ministry of Science and ICT plans to review SK Telecom’s proposal and announce its position at a press briefing on the 27th. Minister Lim Hye-sook met with reporters during the 'Next-Generation Network Development Strategy Establishment Direction Forum' in the afternoon and said regarding the additional frequency allocation proposal, “We need to review it,” adding, “We will explain it at the press briefing.” She also mentioned that more time is needed to consider whether to treat this separately from the 20MHz allocation requested by LG Uplus.

Some speculate that SK Telecom strategically made this proposal to intentionally delay the auction. The government, which had announced plans to hold the additional frequency allocation auction next month, now faces a dilemma. The government held several study sessions last year and conducted a public hearing this month to gather opinions from the three companies. To proceed with the auction as scheduled next month, it is widely expected that the announcement must be made by the end of this month before the Lunar New Year holiday.

Meanwhile, KT stated that it had not been informed of SK Telecom’s proposal in advance. A KT official said, “This was independently submitted by SK Telecom,” and added, “KT will continue to explore various ways to improve customer service.” LG Uplus has not commented on this matter.