Ministry of Science and ICT Reviews SKT's Request for 5G Frequency Allocation... Competitors Face Complex Calculations

Exclusive Use of Frequency Advantageous for SKT
In Auction, Solo Bidding Likely Like LGU+ Case
Competitors Also Say "5G 28GHz Issue More Urgent"

[Asia Economy Reporter Cha Min-young] The Ministry of Science and ICT research team has requested the telecommunications industry to submit opinions regarding SK Telecom's request for an additional allocation of 20 MHz bandwidth in the 3.7 GHz band of 5G frequencies. Since SK Telecom is the only one among the three major telecom operators adjacent to this frequency band, concerns have grown among competitors that this could lead to a competition favoring a specific company.

According to the telecommunications industry on the 19th, the Ministry of Science and ICT research team has asked telecom companies to submit their opinions by the 27th of this month on the 20 MHz bandwidth from 3.7 GHz to 3.72 GHz requested by SK Telecom. This band is adjacent to the 3.6 GHz to 3.7 GHz band currently used by SK Telecom’s 5G network, and because continuous frequencies are advantageous, it can be utilized quickly without additional investment.

Some in the market speculate that the Ministry of Science and ICT has already decided to auction the 20 MHz bandwidth requested by SK Telecom. Although the ministry dismissed the rumors, stating, "The research team has been reviewing this since February this year and the review is not yet complete," competitors KT and LG Uplus are reacting sensitively.

There are also criticisms that the additional allocation of the 5G 3.7 GHz band is premature. A telecommunications industry official said, "We already submitted an opinion once earlier this year regarding SK Telecom’s request," adding, "There is still a consensus that the 3.5 GHz band is sufficient, and the 5G 28 GHz issue is more urgent." Another industry official said, "It is difficult to accept the plan to divide the frequency bands and allocate them separately," emphasizing, "A long-term government plan targeting the entire 300 MHz bandwidth of the 3.7 to 4.0 GHz band, which has not yet been allocated, is necessary."

Last July, LG Uplus, the only one among the three telecom companies using an 80 MHz bandwidth in the 3.5 GHz band, requested the government to allocate an additional 20 MHz bandwidth in the 3.40 to 3.42 GHz band, where interference concerns had been resolved. In response, SK Telecom countered by proposing to auction a total of 60 MHz, including 40 MHz (two 20 MHz bands) in the 3.7 GHz and above bands. However, the Ministry of Science and ICT did not accept this and proceeded only with the 5G frequency allocation application for the 20 MHz bandwidth in the 3.5 GHz band requested by LG Uplus last July. Due to the high equipment investment costs associated with non-adjacent bands, only LG Uplus bid alone, resulting in all three companies using 100 MHz each. LG Uplus will be able to use the additionally allocated frequencies starting November this year.

In the industry, frequency allocation issues are directly linked to 5G service quality. The more frequency bands serving as "highways" increase, the better the communication quality improves. According to government measurement results announced last December, SK Telecom generally achieved excellent performance. SK Telecom ranked first with a speed of 929.92 Mbps, followed by KT (762.50 Mbps) and LG Uplus (712.01 Mbps).

In terms of latency, SK Telecom recorded 17.09 ms, followed by LG Uplus (19.32 ms) and KT (19.41 ms). Regarding coverage, SK Telecom had the widest area at 22,118 km², while LG Uplus and KT covered 18,564 km² and 16,448 km², respectively. With LG Uplus securing additional frequencies this year, it will have equal frequencies to SK Telecom and KT, which could potentially change the quality rankings next year.