Government Sets Minimum Frequency Value at 3.2 Trillion KRW for 5G Deployment...Industry Calls It "Unreasonable"

Option Grant Proposed at 3.2 Trillion Won
Industry Calls "5G Investment Linkage Unreasonable"

[Asia Economy Reporter Koo Chae-eun] The government announced that it will set the LTE frequency reassignment fee, known as the "war of money," at a minimum of 3.2 trillion won by granting an "option" based on network construction performance.

The government proposed an "alternative" to set the basic allocation fee at 4.4 trillion won, but lower it to around 3.2 trillion won if more than 150,000 5G base stations are deployed by 2022. This means that the auction reference price (4.4 trillion won) can be reduced by about 27% depending on the 5G wireless station coverage.

On the 17th, the Ministry of Science and ICT announced that the adjustment (reference) price for LTE frequencies was set at 3.2 trillion won. A government official stated, "Since the value of LTE frequencies varies depending on 5G investment, it was necessary to set an option price based on the level of 5G wireless station construction." As a result, the frequency allocation fee can be priced between 3.2 trillion won and 4.4 trillion won in proportion to the number of 5G wireless stations constructed.

The intention is to reduce the burden of frequency reassignment fees for those who invest more in 5G and network construction. The "3.2 trillion won," which is practically the lowest possible price, is 1.5 trillion won lower than the government's original proposal (4.7 trillion won), but there is still a significant gap compared to the level demanded by telecom companies (1.6 trillion won), so differences in stance are expected.

However, telecom companies have responded that the government's decision is unreasonable. A telecom industry official said, "Linking the 5G investment option to LTE frequency reassignment constitutes double charging and may be illegal." The official added, "If 5G investment conditions must be linked, it would be more reasonable to base it on the number of equipment rather than the wireless station license number, or to relax it to a feasible quantity considering the three companies' joint construction plan."

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