[2021 National Audit] Yoon Young-chan "Achieving 5G 28GHz Mandatory Deployment Rate Impossible Within the Year... Starting with Ecosystem Development"

[Asia Economy Reporter Joselgina Cho] It has been argued that to activate the 28GHz 5G specialized network, known as the so-called 'real 5G,' it is necessary to create an ecosystem where demand and supply for the network are balanced. With it expected to be virtually impossible for the three mobile carriers to meet the mandatory construction rate for 28GHz 5G within this year, it is explained that rather than imposing obligations and burdens on operators, it is urgent to establish an ecosystem centered on specialized networks that allow voluntary participation.

According to data received by Yoon Young-chan, a member of the National Assembly's Science, Technology, Information and Broadcasting Communications Committee from the Ministry of Science and ICT on the 1st, as of the end of August, the number of 28GHz band 5G base stations built by the three mobile carriers was only 161, achieving a mandatory construction compliance rate of just 0.3%.

In accordance with the Ministry of Science and ICT's mandatory 5G network construction policy, the three carriers must build 45,000 28GHz band 5G base stations by the end of this year. However, looking at the trend of 28GHz band 5G base station construction by the three carriers this year, the number increased from 45 at the end of January to 161 at the end of August, an increase of only 116 over seven months. This amounts to an average of about 17 base stations per month, which is insufficient to meet the mandatory construction target.

If the carriers fail to fulfill the network construction obligation by the end of this year, frequency allocation cancellation is possible under the Radio Waves Act. The frequency allocation fee of 622.3 billion KRW will also not be refunded.

Assemblyman Yoon Young-chan pointed out, “The low investment by telecom companies is not unrelated to the Ministry of Science and ICT’s 28GHz frequency supply policy,” adding, “When the Ministry allocated frequencies in May 2018, it did not sufficiently consider the 28GHz 5G technology review and related service demand, resulting in frequency allocation that lowered operators’ investment capacity right from the initial business entry.”

On the other hand, major European countries such as Germany and the United Kingdom allocate the mmWave band exclusively for 5G specialized networks, allowing operators (including mobile carriers) to participate in specialized network projects without the burden of nationwide network frequency allocation fees.

Assemblyman Yoon said, “To properly activate 28GHz 5G, it is more effective to create an ecosystem centered on specialized networks that allow voluntary participation rather than imposing obligations and burdens on operators,” emphasizing, “It is necessary to prepare policies that induce the creation of an ecosystem including terminals, equipment, and services, as well as solutions and support measures that encourage participation from various demanders such as small and medium-sized enterprises, harmonizing demand and supply beyond network prioritization.”

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