With Explosive 5G Coverage Even Inside Buildings... Over 2,000 In-Building Sites to Be Established This Year

[Asia Economy Reporter Seulgina Jo] Marking the first anniversary of commercialization, South Korea's 5G mobile communication industry is accelerating the deployment of In-Building equipment that delivers 5G signals inside buildings where radio waves do not reach. By the end of this year, it is expected that 5G In-Building services will be available in 2,000 to 2,500 locations, more than four times the number from last year. This move comes in response to criticism of 'dead zones' after the first year of commercialization saw only half of the initially targeted 5G In-Building deployments completed. However, difficulties are anticipated due to recent setbacks in 5G network installations caused by the spread of COVID-19.

◆Last year's In-Building installation targets missed= According to industry sources on the 6th, SK Telecom plans to install 5G In-Building equipment in about 2,000 locations this year, including airports, department stores, large shopping malls, and small to medium-sized buildings. In-Building service refers to transmitting wireless repeater signals inside buildings to subscribers where radio waves do not reach. SK Telecom's 5G In-Building deployments in its first year of commercialization in 2019 reached only about 500 locations, half of the original target.

KT currently offers 5G In-Building services in about 500 buildings, including KTX Seoul Station and airports. KT also failed to meet its goal of deploying 1,000 locations within the year. Although KT has not disclosed its target for this year, coverage is expected to expand to a level similar to SK Telecom. LG Uplus has also made investments in the 5G sector at a level similar to last year to secure a denser service network.

For the three telecom companies to shed the stigma of '5G that works worse than LTE (4G),' urgent investment in 5G In-Building is essential. Last year, these companies invested over 8 trillion won in capital expenditures (CAPEX), focusing more on building outdoor base stations in major cities nationwide rather than In-Building infrastructure. Starting this year, when the first 5G quality evaluation is conducted, the quality of 5G in large buildings in urban areas where crowds gather will be a key factor in the popularization of 5G. Currently, unlike outdoor base stations, much of the 5G In-Building infrastructure is being jointly constructed through cooperation among the three companies. Considering this, it is estimated that by the end of this year, South Korea's 5G In-Building services will expand to a total of 2,000 to 2,500 locations, more than four times the previous year.

◆5G investment scale increased by 50%= However, the problem lies in the impact of COVID-19. The three telecom companies increased their planned 5G investment for the first half of this year (4 trillion won) by 50%. Nevertheless, there are many concerns that private investment beyond large corporations will be difficult to sustain amid the sluggish economy. Additionally, the prolonged 'social distancing' has slowed the pace of 5G network construction.

An SK Telecom official explained, "There is a clear tendency for delays in In-Building infrastructure construction recently as residents are reluctant to allow outside visitors." A similar atmosphere is observed in business-to-business (B2B) sectors such as smart factories and smart buildings, which the industry expects to grow.

An industry insider said, "It is difficult to estimate the future scale of 5G In-Building investment," adding, "Additional support measures to expand private investment are urgently needed." Earlier, the Ministry of Science and ICT proposed expanding tax credits for 5G In-Building under the 'Restriction of Special Taxation Act' amendment, which the government had promoted as part of economic stimulus measures, but this was not included in the final bill.

This content was produced with the assistance of AI translation services.