KT Boils Over at Proposal for Additional 5G Frequency Allocation

SKT Submits Additional Auction Official Letter to Government

The three major mobile carriers

[Asia Economy Reporter Cha Min-young] SK Telecom, which had virtually formed an alliance with KT and opposed LG Uplus's demand for additional 5G frequency allocation, has taken an independent path. Following LG Uplus, SK Telecom also demanded an additional 40 MHz bandwidth allocation, causing KT's stance to become conflicted.

On the 25th, SK Telecom announced that it submitted an official letter to the government proposing that, besides LG Uplus, other telecom companies should secure 5G frequencies under the same conditions before proceeding with the auction. SK Telecom argues that, in addition to the 20 MHz frequency in the 3.5 GHz band, which is unilaterally favorable to LG Uplus, a total of 60 MHz including 40 MHz (two 20 MHz bands) in the 3.7 GHz and above bands should be auctioned simultaneously. They added that this plan is the most appropriate to fulfill the government's originally stated purposes for frequency allocation: 'customer benefits' and 'investment promotion.'

Previously, the three major telecom companies showed differing opinions regarding the government's additional 5G frequency allocation. LG Uplus, the only one among the three using an 80 MHz bandwidth in the 3.5 GHz band, requested the government to allocate an additional 20 MHz bandwidth where interference concerns have been resolved. SK Telecom and KT strongly opposed this, arguing it was unfair since LG Uplus was practically the only participant eligible for additional frequency allocation. Currently, 5G frequencies use the 3.5 GHz to 3.7 GHz bands. The frequency bands were distributed in the order of LG Uplus, KT, and SK Telecom. Therefore, with SK Telecom also requesting adjacent band frequency allocation following LG Uplus, KT's position has become difficult. Regarding SK Telecom's recent request, KT stated, "There was no prior discussion," and added, "We will consider various methods to improve customer service."

The Ministry of Science and ICT, the competent authority, 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 at the 'Next-Generation Network Development Strategy Establishment Promotion Direction Forum' in the afternoon and said regarding the additional frequency allocation proposal, "We need to review it," and "We will explain it at the press briefing."