Science and ICT Committee Member Lee Hae-min Raises Suspicion
"Not Qualified for Existing Network Sharing"
"Contradictory and Inconsistent Policy"
Scene from the full meeting of the Science, Technology, Information and Broadcasting Committee at the National Assembly in Yeouido, Seoul on the 2nd. From the left, Lee Jong-ho, Minister of Science and ICT; Choi Soo-yeon, CEO of Naver; Seo Sang-won, CEO of Stage Five. [Photo by Yonhap News]
StageX has claimed that the Ministry of Science and ICT forcibly proceeded with the launch of the 4th mobile carrier despite the legal impossibility of roaming (shared use) on existing telecom operators' networks.
On the 4th, Lee Haemin, a member of the Innovation Party for Justice, raised suspicions that the Ministry of Science and ICT's cancellation of the 4th carrier candidate qualification was not a measure based on legal advisory interpretation that 'mandatory roaming is not allowed.'
He pointed out, "The government hastily pushed for the introduction of a new operator, but when the legal advisory stated that mandatory roaming is not allowed, they announced the cancellation of the candidate qualification to cover up the situation."
In July last year, the Ministry of Science and ICT announced through the 'Telecommunication Market Competition Promotion Plan' that new operators would be allowed to share (roam) other companies' networks such as base stations and core networks in areas where they have not built their own networks.
Regarding this, on the 2nd, Seo Sangwon, CEO of StageX, said at the National Assembly's Science, ICT, Broadcasting and Communications Committee, "The 28 GHz frequency band requires significant technological investment focused on customer experience rather than business feasibility," adding, "By roaming nationwide and providing services based on technological innovation and investment, we can secure competitiveness."
Given the enormous costs involved in infrastructure construction due to the characteristics of the new 28 GHz band, the plan is to leverage the nationwide networks built by the existing three telecom companies in the 3.5 GHz band to establish service competitiveness.
However, as a result of legal advice, the Ministry of Science and ICT confirmed that nationwide roaming by StageX is not possible.
According to materials submitted by the Ministry of Science and ICT to Lee's office, legal experts interpreted, "Roaming can only be established when providing the same service, but it is impossible to consider Company A (StageX) as a nationwide operator, so this corresponds to a wholesale provision rather than roaming."
They also stated, "For the Minister of Science and ICT to designate Company A as a roaming service provider, it must be limited to 'cases where Company A provides data services to users with 28 GHz service-capable devices' to be recognized as a roaming service provider."
Legal experts also expressed concerns, saying, "There is expected to be much controversy over whether granting Company A, which lacks the conditions to induce competition in the mobile communication market, the qualification to demand roaming for nationwide mobile communication services is truly for promoting competition in the mobile communication market."
Lee criticized, "Currently, there is not a single device in Korea that supports 28 GHz," adding, "The government hastily pushed for the introduction of a new operator without proper preparation, and when the legal advisory stated that mandatory roaming is not allowed, they announced the cancellation of the candidate qualification to cover up the situation."
He continued, "Despite this situation, StageX still harbors the unrealistic dream of roaming on existing operators' networks to save on duplicate investment costs and lower charges for the public," calling it "a completely contradictory and inconsistent policy."
He emphasized, "Trying to catch two rabbits?investment in 28 GHz facilities and fee reduction?has now put even the MVNOs at risk of losing three rabbits," urging, "The Ministry of Science and ICT must conduct a full review of the 4th carrier introduction policy that disrupts the order of the telecommunications market."
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