'Starlink' to Enter Korean Market Next Year... Will It Receive 28GHz Frequency Allocation?

Overseas Use of 28GHz and Capital Strength Cited for New Entrants
"Satellite Communication Differs from Mobile Communication... No Interest in 28GHz Allocation"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Oh Su-yeon] As SpaceX's low Earth orbit satellite communication service "Starlink" announced plans to enter the Korean market in the first quarter of next year, there is speculation that it will be allocated the 28 GHz frequency band, which was canceled from domestic mobile carriers. However, the consensus is that this is unlikely to happen.

According to the industry on the 26th, the Ministry of Science and ICT announced the results of the compliance check on the 28 GHz band 5G frequency allocation conditions on the 18th. The ministry stated that the efforts of telecom operators to activate the 28 GHz band were insufficient, shortening the usage period for SK Telecom and canceling the allocation for KT and LG Uplus. If KT and LG Uplus go through a hearing process next month and their allocations are finally canceled, the ministry plans to allocate one band to a new operator rather than an existing telecom company.

Recently, there has been speculation that Starlink, as a new operator, will receive the 28 GHz frequency from KT or LG Uplus. The 28 GHz frequency band has a shorter reach and weaker diffraction compared to the 3.5 GHz band used for nationwide 5G networks, requiring a denser deployment of base stations, which entails enormous costs. On the other hand, since differentiated content such as metaverse or autonomous driving using 28 GHz has not yet been commercialized, the business viability is low. Even seasoned telecom companies have given up, making it difficult for new operators to enter. However, Starlink has telecom know-how through its satellite communication business and possesses substantial capital, making investment possible.

Additionally, Starlink uses the 28 GHz band as an uplink frequency in most countries, and its service map reveals that the Korean service launch is scheduled for the first quarter of next year. With the Korean service imminent, it is speculated that Starlink will be allocated the 28 GHz frequency to conduct satellite communication business domestically.

However, the government and experts view this as unlikely. To operate satellite communication, it is sufficient to request frequency use at a single earth station, so allocating the 28 GHz frequency to build terrestrial mobile base stations at hotspots nationwide would be a waste of resources and differs from Starlink's existing business model. It is also not yet known whether Starlink will use the 28 GHz band as an uplink frequency in Korea.

A Ministry of Science and ICT official said, "The uplink frequency (used by Starlink) is not used nationwide but only at a single point, such as the Geumsan earth station," adding, "We understand that SpaceX is not interested in terrestrial base stations or the 28 GHz frequency subject to reallocation." Deputy Minister Park Yoon-kyu also stated, "The competitiveness of satellite service operators in the 28 GHz band is limited."

Experts also judge the likelihood as low. Professor Lee Moon-kyu of the Department of Electronic, Electrical, and Computer Engineering at the University of Seoul explained, "Government policies related to millimeter wave (mmWave) such as 28 GHz are aimed at installing terrestrial base station equipment, but Starlink does not operate on that concept, so there is no reason for it to take the 28 GHz frequency, and even if allocated, it would not be able to meet (government conditions). Starlink is not a mobile communication service, so its purpose is different, limited, and it uses frequencies with partial permits restricted to certain areas."

Meanwhile, Starlink is taking steps to start its service in Korea. SpaceX met with government officials in July to inquire about regulations related to the Korean business. According to government officials, SpaceX continued to review domestic regulatory matters through video conferences at the working level after July. However, no application documents for providing satellite communication services have been submitted yet. According to the telecom industry, SpaceX has hired a domestic law firm and is active, and has also met with telecom companies interested in satellite communication business. Furthermore, during a video meeting on the 23rd between President Yoon Suk-yeol and Elon Musk, CEO of Tesla and SpaceX, President Yoon reportedly mentioned Starlink and proposed cooperation related to communication networks.