[Asia Economy Reporter Seongpil Cho] The three mobile carriers that received cancellations or usage period reductions for their 5G 28GHz frequency allocations have reportedly conveyed to the government their request for leniency, considering the "continuity of public Wi-Fi services."
On the afternoon of the 5th, the Ministry of Science and ICT held a closed hearing at a hotel in Seoul with representatives from SK Telecom, KT, and LG Uplus to listen to the official positions, explanations, and future implementation plans of the three companies regarding the cancellation or reduction of the 5G 28GHz frequency. Previously, the Ministry had canceled the allocation for KT and LG Uplus, who failed to meet the required number of 5G 28GHz base stations as per the original frequency allocation conditions, while SK Telecom, which barely exceeded the score, was given a 10% (6 months) reduction in usage period.
According to industry sources, the three carriers requested reconsideration of the decision at the hearing, emphasizing the continuity of public service projects using the 28GHz frequency. In particular, they appealed to continue consumer-beneficial subway Wi-Fi services and pledged to sincerely discuss and review new uses for the 28GHz band with the government.
Regarding the reasons for the cancellation or reduction decision last month, the Ministry explained that when allocating the frequency to the three carriers in 2018, a condition was set to build 15,000 devices by the third year. However, inspections revealed that the carriers' implementation levels were only in the 10% range of the originally promised volume. It is reported that the government hearing procedure to hear the carriers' opinions was effectively concluded on that day. Accordingly, the Ministry plans to finalize its position and announce a conclusion within this month based on the hearing content and the opinion report prepared by the hearing chairperson.
Currently, the government is actively considering awarding one of the frequency bands to a new operator if the cancellation for the two carriers is finalized. As a follow-up measure, the first meeting of the "28GHz New Operator Support TF" was held on the 24th of last month, and the basic direction to promote new operator entry will be established within the year.
However, the industry views that it will be difficult for a fourth domestic operator to enter the market due to the scale of investment required for telecommunications infrastructure. The 28GHz frequency band demands massive capital investment in facilities. While there is a possibility of foreign operators entering the market, the consensus is that it is unlikely to be the satellite operator "Starlink."
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