Ministry of Science and ICT Pre-Notifies SKT of 5G 28GHz Band Allocation Cancellation

The Ministry of Science and ICT announced on the 12th that it conducted a compliance check on SK Telecom regarding the termination timing of the 5G 28 GHz frequency and issued a prior notice of allocation cancellation.

The Ministry of Science and ICT notified SKT, which failed to fulfill the conditions imposed when the 5G frequency was allocated in 2018, that the usage period for the 28 GHz frequency was shortened by 10% (from 5 years to 4 years and 6 months) at the end of last year, and if SKT fails to build 15,000 devices as originally required by May 31, when the usage period ends, the allocation will be canceled.

As the end of SKT's 28 GHz frequency usage period approached, the Ministry of Science and ICT received SKT's performance report and future plans earlier this month and conducted an inspection. As of the 4th, the number of network devices built by SKT in the 28 GHz band was 1,650. Confirming that there are no plans to build additional devices by the 31st, the Ministry issued a prior notice of allocation cancellation due to non-fulfillment of frequency allocation conditions.

In accordance with the Administrative Procedures Act, the Ministry of Science and ICT will hold a hearing to listen to SKT's opinions regarding this prior disposition. Based on the results, a final disposition is planned for the end of this month.

Choi Woo-hyuk, Director of the Radio Policy Bureau at the Ministry of Science and ICT, said, "Despite the government's active efforts so far, we regret that this final outcome has occurred," adding, "We will strive to induce new entrants in the 28 GHz band and revitalize competition in the telecommunications market so that the public can enjoy higher levels of 5G services."

In response, SKT explained, "Since the allocation of the 28 GHz frequency band, we have continuously worked to foster the ultra-high frequency ecosystem and discover business models," adding, "The overall environment, including business models, did not reach the level necessary for commercialization, and we regret that we could not continue investing." SKT plans to consult with the government regarding business directions and other matters.