StageX of 4th Telecom Failure "Shareholders Discussing Injunction and Compensation Lawsuit"

"Ministry of Science and ICT, Overly Strict Interpretation of Systems and Procedures"
"Plans to Continue Innovation in the Mobile Market"

StageX, whose bid to become the fourth mobile carrier was thwarted, is pursuing legal actions including a provisional injunction and damages claims against the Ministry of Science and ICT.

Seo Sang-won, CEO of Stage X
Photo by Yonhap News

On the 31st, immediately after the Ministry of Science and ICT announced the final cancellation of StageX's selection as the frequency allocation target company, StageX expressed deep regret in a statement over the notification of disqualification as a qualified fourth mobile carrier candidate.

Previously, StageX, which was allocated the 28 GHz band through a frequency auction, had been preparing to launch as the fourth mobile carrier under the banner of reducing communication fees and providing ultra-high-speed 5G services.

However, the Ministry of Science and ICT ultimately canceled StageX's selection as the frequency allocation target company, citing non-compliance with necessary requirements stipulated in the Radio Waves Act and related regulations, as well as violations of the pledge.

StageX stated, "Despite faithfully submitting additional explanatory and supporting documents and undergoing hearings for nearly three months at the ministry's request, sufficiently presenting the unfairness of the cancellation, this decision was made."

They added, "This selection of the fourth mobile carrier, attempted for the first time since the licensing system for telecommunications service providers changed to a registration system, could have yielded a different outcome," and said, "It is very regrettable that the Ministry of Science and ICT made a disappointing decision by excessively interpreting the current system and procedures."

Kang Do-hyun, the 2nd Vice Minister of the Ministry of Science and ICT, is briefing on June 14 at the Government Seoul Office in Jongno-gu, Seoul, regarding the scheduled cancellation of StageX's qualification as the 4th mobile carrier candidate.
[Image source=Yonhap News]

StageX also reported that it had made thorough preparations including ▲ a business agreement to provide innovative services based on the 28 GHz band ▲ strategic partnerships with CSPs and telecom operators to build cloud-based communication infrastructure and provide nationwide roaming services ▲ recruitment of experts and strategic alliances with overseas telecom operators.

They stated, "StageX will not stop here," and added, "We plan to continue sincere efforts to lead change and innovation in the domestic mobile communication market so that our efforts so far will not be in vain."

Finally, they said, "Company-level responses such as provisional injunction applications and damages claims against the Ministry of Science and ICT's regrettable decision will be pursued through in-depth discussions with related shareholders, including StageFive."