“Simultaneous Supply of 28GHz+4.7GHz Bands” Ministry of Science and ICT to Provide 5G Specialized Networks to Non-telecom Companies in November

Simultaneous Supply of 28GHz and 4.7GHz Bands
28GHz Band Frequency Unit Price Reduced to One-Tenth

[Asia Economy Reporter Eunmo Koo] The government will begin supplying 28 gigahertz (GHz) band and sub-6 GHz band frequencies to demand companies starting this November to activate 5G specialized networks that can build and provide services within limited areas such as land and buildings. The government aims to promote the activation of the business-to-business (B2B) industry by supplying frequencies suitable for 5G specialized networks.

The Ministry of Science and ICT announced on the 29th the finalized '5G Specialized Network Frequency Supply Plan,' a follow-up to the '5G Specialized Network Policy Plan' announced on January 26.

The frequencies decided for supply this time are 600 megahertz (MHz) bandwidth in the 28 GHz band and 100 MHz bandwidth in the 4.7 GHz band within the sub-6 GHz band. The 28 GHz band will be divided into twelve 50 MHz blocks within the 600 MHz bandwidth (28.9?29.5 GHz), and appropriate bandwidth will be supplied based on demand companies' applications. The sub-6 GHz band will share frequencies with existing wireless stations used only in some areas, dividing the 100 MHz bandwidth in the 4.7 GHz band (4.72?4.82 GHz) into ten 10 MHz blocks, supplying appropriate bandwidth according to demand companies' applications.

The government stated that to activate the B2B industry, it is important to supply various frequencies needed in the market, so it decided to supply both bands simultaneously. Changhee Lee, Director of the Radio Policy Bureau at the Ministry of Science and ICT, explained, “Considering the nature of specialized network frequencies, we found it important to have bands that can be shared regionally, which led us to discover the 4.7 GHz band. The 4.7 GHz band within the sub-6 GHz band was previously used to provide communication services to island areas on the west and some east coasts, confirming that regional shared use is possible, so it was selected.”

Licensed Telecom Operators Receive Frequency Allocation, Private Network Installers Receive Frequency Designation

Frequency supply will be conducted by allocating frequencies to licensed telecom operators who register to provide 5G specialized network services and build 5G specialized networks, and by designating frequencies to private network installers who set up wireless stations for their own business use.

First, the frequency allocation method applies a cost allocation approach rather than an auction because the specialized network frequencies are used within limited areas such as land and buildings, resulting in limited competitive demand for frequencies. The frequency usage period can be flexibly selected by the applying company between 2 to 5 years, and to prevent simple holding of frequencies, there will be an obligation to build wireless stations within six months after frequency allocation.

Additionally, private network facility operators with 5G specialized network demand will be assigned frequencies after interference analysis according to the current wireless station establishment permit procedures. However, frequency demand from national, local governments, and public institutions will be decided based on the 'Public Use Frequency Supply Plan' established under the Radio Waves Act.

The government stated that before finalizing this frequency supply plan, it contacted various companies to gather opinions and confirmed demand for both sub-6 GHz and 28 GHz bands. Director Lee said, “About 20 companies, including major demand companies such as manufacturers and telecom operators, participated in consultations during the opinion-gathering process. Specialized network frequencies can be utilized in various fields such as smart factories, smart farms, healthcare, and robotics.”

28 GHz Allocation Fees Are One-Tenth of 4.7 GHz... Incentives Provided Considering Wireless Station Construction Costs

The frequency allocation fees will be calculated comprehensively considering international trends and fairness among operators. The specific fee calculation method refers to the German case, which charges fees based on land and building area, ensuring a minimum fee even for minimum area usage. In densely populated areas such as large cities, where demand for frequencies is high and more revenue is expected from frequency use, a regional coefficient of 5:1 is applied between cities with populations over 500,000 and other areas to calculate different allocation fees.

In particular, the allocation fee for the 28 GHz band is set at about one-tenth of the 4.7 GHz band under the condition of using the same bandwidth, considering frequency characteristics and the equipment and terminal ecosystem. Radio usage fees will also be imposed at a significantly lower level than 4.7 GHz under the same bandwidth and coverage conditions, considering the characteristics of the 28 GHz band. Director Lee emphasized, “We decided to provide a substantial incentive for usage fees compared to sub-6 GHz, considering additional costs such as wireless station construction for the 28 GHz band.”

Frequency Supply Scheduled for Late November Following October Allocation Announcement

Frequency allocation evaluation criteria will minimize financial capability assessments, considering that 5G specialized networks operate as small-scale networks, unlike existing mobile communication frequency allocations. However, evaluation items will be supplemented focusing on interference management for frequency sharing and appropriate bandwidth supply.

The allocation evaluation process will be simplified to enable rapid frequency supply by integrating the current frequency allocation eligibility review and frequency usage plan review, shortening the evaluation period from over three months to one month. Also, since 5G specialized networks require reflecting various field conditions depending on usage fields or purposes to minimize interference among frequency users, on-site inspections will be conducted if necessary during frequency allocation evaluations.

Furthermore, to ensure stable provision and activation of 5G specialized network services, radio experts from institutions such as the Korea Communications Agency (KCA) and the Electronics and Telecommunications Research Institute (ETRI) will participate to provide advisory services to demand companies.

The Ministry of Science and ICT plans to organize related systems by the end of September as a follow-up to the announced 5G specialized network frequency supply plan, announce frequency allocation in October, and supply frequencies around late November.

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