"Frequency Reallocation Costs Must Ensure Predictability"

[Asia Economy Reporter Koo Chae-eun] There have been calls to increase predictability in the calculation of frequency reassignment fees.

Professor Shin Min-soo of Hanyang University stated at the 'Desirable Frequency Reassignment Policy and Institutional Improvement Directions for 5G Activation' forum hosted by Kim Young-sik, a member of the People Power Party, at the National Assembly on the 6th, "From an economic perspective, if the calculation of frequency reassignment fees has low predictability, it increases the burden on operators, which is likely to cause adverse effects."

Professor Shin expressed concern, saying, "Considering the economic significance of reassignment, mobile communication services require large-scale facility investments and must realize economies of scale, and the facilities are specialized for mobile communications and cannot be used for other purposes. Ultimately, if reassignment does not occur, all facilities and costs become sunk costs, which can lead to a decrease in consumer welfare due to the sunk welfare of operators from a social welfare perspective."

Professor Kim Yong-hee of Soongsil University pointed out, "Frequency is a finite and exclusive resource, so predictability must be guaranteed, and ensuring predictability for the subject is also a requirement in legislation that restricts basic rights. The current Radio Waves Act and its enforcement decree have some insufficiencies, which inevitably cause problems related to operators' revenue planning and management."

Attorney Kwon Chang-beom from Law Firm In said, "New allocation and reassignment are distinctly different, and it is problematic to treat them the same. In the absence of legal grounds, there is a demand to reflect frequency auction fees in the fee calculation process as an additional policy measure, but it is questionable whether it is appropriate without specific conditions for reflection."

Professor Lee Sung-yeop of Korea University said, "If the Radio Waves Act is reflected after the government's reassignment disposition is finalized, there may be difficulties with retroactive application. Considering that the amendment does not require a preparation period, it does not take six months to create the enforcement decree and can be implemented immediately."

Meanwhile, the Ministry of Science and ICT plans to announce the frequency reassignment fees by the end of this month. While operating a research team to focus on appropriate fee calculation, the gap with the three major mobile carriers has not been narrowed. The government claims up to 5.5 trillion won, while the three carriers argue for 1.6 trillion won, indicating a significant difference and expected considerable difficulties.

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