Mandatory 5G Infrastructure Investment in 3G/LTE Reallocation Deemed 'Legitimate'

Government Legal Advisory: "Appropriate Obligations Can Be Imposed at Discretion"
Lee Haemin: "Mandatory 5G Investment Needed in Underserved Areas"

A legal interpretation has determined that the government's imposition of mandatory 5G infrastructure investment in underserved areas as a condition for reallocating 3G and LTE frequencies constitutes a legitimate exercise of discretionary authority.

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Lee Haemin, a member of the National Assembly's Science, ICT, Broadcasting, and Communications Committee from the Rebuilding Korea Party, announced on the 28th, citing legal advice submitted by the Ministry of Science and ICT, that "the reallocation of 3G and LTE frequencies must include mandatory 5G infrastructure investment, particularly focused on indoor and underserved areas."

Last month, Assemblyman Lee raised concerns during a parliamentary audit regarding the lackluster 5G infrastructure investment and declining service quality by telecommunications companies. He pointed out that if this situation persists, not only will users continue to suffer from deteriorating service quality over the next three to five years, but the collapse of the related industrial ecosystem could also severely undermine the nation's competitiveness in 6G technology.

The Ministry of Science and ICT recently received external legal advice stating that "frequency reallocation is classified as a discretionary and beneficial administrative act, allowing for the imposition of conditions and obligations." This means that imposing a 5G infrastructure investment obligation as a condition for reallocating 3G and LTE frequencies is a legitimate exercise of discretionary authority.

The advisory body noted that LTE frequencies are an essential prerequisite for ensuring 5G service quality. It highlighted that domestic telecom operators utilize LTE frequencies for 5G services in a 5G non-standalone (NSA) environment. In this context, the imposition of a 5G infrastructure investment obligation aligns with the intent of Article 13 of the Enforcement Decree of the Radio Waves Act, which stipulates the need to ensure service quality levels.

The advisory also stated that it is possible to set investment options linked to the reallocation fees. However, it emphasized that an appropriate level of obligation should be established, taking into account the principle of proportionality and the feasibility of implementation by telecom operators.

Assemblyman Lee stressed, "Given the ongoing decline in 5G service quality due to insufficient investment by telecom operators, the reallocation of 3G and LTE frequencies is virtually the only policy tool that can meaningfully improve user experience." He added, "Now that it has been legally confirmed that investment obligations can be imposed, the Ministry of Science and ICT must ensure that the reallocation conditions include mandatory 5G infrastructure investment, prioritizing improvements in underserved areas such as rural regions, high-speed railways, and indoor environments, as well as annual 5G base station installation targets."