LG Uplus Demands Additional 5G Frequency Allocation... Fairness Controversy

October Rural 5G Joint Roaming Launch Before
"Necessary for Nationwide Uniform Service"
SKT·KT Submit Opposition Letters
"Allocation Will Undermine Ministry of Science and ICT Policy Direction" Criticism

[Asia Economy Reporter Cha Min-young] Ahead of the launch of the rural 5G joint roaming service this October, LG Uplus has requested additional frequency allocation, prompting the Ministry of Science and ICT to begin reviewing the matter. Competing mobile carriers are opposing the move, arguing it could lead to allegations of preferential treatment. They claim that if the Ministry grants additional frequency allocation to LG Uplus, which originally lost out in the frequency auction, it could undermine the fundamental policy direction of frequency resource management.

Aftermath of LG Uplus's Request for Additional 5G Frequency

According to industry sources on the 14th, SK Telecom and KT submitted written objections to the Ministry of Science and ICT yesterday afternoon regarding LG Uplus's request for an additional 20 MHz frequency allocation in the 3.4?3.42 GHz band.

Since LG Uplus requested additional 5G frequency allocation on the 8th, the Ministry of Science and ICT has asked the three mobile carriers to submit their opinions. The ministry will assess the validity and decide whether to activate a research team. Park Tae-wan, head of the Frequency Policy Division at the Ministry, stated, "Since the demand was raised by one party and the issue is sensitive, the government will approach it from scratch without any prejudice."

The 3.4?3.42 GHz band requested by LG Uplus is adjacent to the frequency band already allocated to LG Uplus and can be utilized immediately without additional equipment. During the 2018 auction of 5G frequencies (3.5 GHz and 28 GHz) for the three carriers, this adjacent band was excluded due to concerns over interference with public-use frequencies. Recently, as its usability has emerged, LG Uplus has raised demand for it.

LG Uplus argues that since the rural 5G joint roaming service is scheduled for October, additional frequency allocation should proceed swiftly to ensure all citizens can enjoy uniform service quality. Compared to SK Telecom and KT, which each received 100 MHz during the frequency auction, LG Uplus only received 80 MHz, so there should be no discrimination against residents in LG Uplus’s roaming areas such as Gangwon, Jeolla, and Jeju regions.

An LG Uplus official explained, "In 2018, LG Uplus bid up to the 9th round in the first-stage auction to secure a 90 MHz bandwidth," adding, "If we receive an additional 20 MHz this time, we will secure the same frequency bandwidth as other companies."

Competitors: "Undermines Consistency, Biased Toward a Specific Operator"

Competitors strongly oppose these claims, arguing that they undermine policy consistency, damage the purpose of the auction system, and will spark controversy over preferential treatment. They also foresee distortion of frequency value.

First, there is a significant concern that the government's frequency resource policy consistency will be shaken. The government announced in the 2019 ‘5G Spectrum Plan’ that the next 5G frequencies would be supplied after 2023. Even if the 20 MHz band, previously excluded due to interference concerns, becomes usable, it should be allocated together with the next 5G frequency allocation.

There is also an argument that the auction system’s purpose of "enhancing overall welfare through market competition" will be compromised. The claim that a specific operator will take over 5G frequencies, which the three carriers fiercely competed for under fixed auction rules in 2018, three years later, will lead to controversy over unfair frequency policy. At that time, the three carriers?SK Telecom, KT, and LG Uplus?competed over 100 MHz, 100 MHz, and 80 MHz bandwidths and the 3.42?3.7 GHz location, with total bids of 1.2185 trillion KRW, 968 billion KRW, and 809.5 billion KRW respectively. LG Uplus, ranked third, was pushed to a lower priority.

An industry official said, "The demand to allocate limited frequency resources solely for the benefit of a specific operator will escalate into allegations of preferential treatment and unfair frequency policy," adding, "There has never been a case in domestic frequency supply history where an auction was conducted without competitive demand."

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