Telecom Companies Favoring 5G... Overall Communication Investment Facilities Decrease

5G Wireless Stations Increased in Q1
But 2~4G Combined Stations Decreased by Over 25,000
Low Profitability Leads to Neglected Investment

[Asia Economy Reporter Cha Min-young] As mobile carriers rush to build 5G networks, criticism is emerging that investments in the relatively less profitable 2G, 3G, and 4G (LTE) networks have been neglected.

According to the Korea Radio Promotion Association and the telecommunications industry on the 6th, the number of domestic mobile communication base stations in the first quarter was 1,461,687, a decrease of 18,740 (1.27%) from the previous quarter (1,480,427). The total number of base stations peaked at 1,511,008 in the second quarter of last year, then declined in the third quarter (1,442,441), slightly rebounded in the fourth quarter (1,480,427), but decreased again.

By network, the number of 5G base stations increased by 6,738 to 148,667 compared to the previous quarter, while the combined total of 2G, 3G, and LTE base stations decreased by 25,478 to 1,313,010, showing a significant decline in the combined total. In particular, the number of 2G base stations was drastically reduced by about 25,000, which is more than a quarter of the total, in just one quarter.

Among all base stations, the proportion by network also saw 5G enter double digits for the first time. The number of 5G base stations accounted for 10.2%, which is higher than 2G (2.8%) but lower than 3G (20.9%) and LTE (66.2%).

In the market, there are concerns that mobile carriers are neglecting investments in other network infrastructures to increase investments in 5G base stations, which are more profitable and face higher expansion pressure. This is because 5G services have higher average revenue per user (ARPU) due to their premium pricing plans. The government is also pressuring the three major carriers under the goal of being the ‘world’s first to commercialize 5G,’ which is believed to have led to efforts to improve cost efficiency.

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