"Reveal Frequency Value Calculation Method" Telecom 3 Companies Take 'Strongest Measures'

Telecom 3 Companies Request Information Disclosure from Ministry of Science and ICT
Demand Disclosure of Frequency Value Calculation Method

[Asia Economy Reporter Koo Chae-eun] The three major telecom companies have decided to file an information disclosure request against the Ministry of Science and ICT regarding the calculation method of the frequency reassignment price (frequency value). This move comes amid criticism that the method for determining the allocation fee is arbitrary, and they intend to examine whether the price has been properly set.

On the 12th, SK Telecom, KT, and LG Uplus, the three telecom companies, demanded, "The Ministry of Science and ICT must clearly disclose the detailed calculation basis and method for the minimum competitive price in new frequency auctions and the reassignment frequency fee over the past 10 years." The three companies especially stated, "There must be a transparent and clear explanation regarding the background and reasons why the current reassignment fee calculation method differs from the principles stipulated in the Radio Waves Act and the standards used so far."

The frequency fee is the money telecom companies pay to the government in exchange for using the public resource of radio waves for periods of 5 to 10 years. Initially, the fee is collected through auctions, and upon extension, reassignment fees (renewal fees) are charged. Currently, the valuation gap between the Ministry of Science and ICT's proposal (5.5 trillion KRW, based on budget estimates) and the telecom companies' valuation (1.6 trillion KRW) reaches up to 4 trillion KRW, indicating significant differences in opinion.

Regarding the background of the information disclosure request, the three telecom companies explained, "We have already conveyed reasonable calculation methods based on relevant regulations, including expert opinions, to the Ministry of Science and ICT multiple times, but they are proceeding with the reassignment fee calculation independently without any consultation with the telecom companies." They expressed concern that the Ministry might calculate the reassignment fee in a manner completely different from the Radio Waves Act regulations and new frequency allocation methods, and thus decided to file the information disclosure request to verify this. The responsible administrative agency must respond to the requester within 10 days of receiving the information disclosure request regarding whether the information will be disclosed.

The three telecom companies argue that proposing a completely different fee calculation method just before the frequency reassignment application is inconsistent with relevant regulations and involves serious procedural flaws. According to the Radio Waves Act, if the Ministry of Science and ICT intends to impose new conditions on reassignment, it must notify the frequency users at least one year before the end of the usage period.

An industry insider said, "The disclosure of past frequency allocation fee calculation methods guarantees the fair execution of the Ministry of Science and ICT's duties," adding, "Considering the public significance of frequencies, there is a need for transparent disclosure to ensure that national supervision and regulation are appropriately conducted."

Meanwhile, the Ministry of Science and ICT is scheduled to finalize the frequency fee method by the end of this month and plans to meet with the three telecom companies on the 17th to coordinate opinions.

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