[Column] Frequency Conflict, Ministry of Science and ICT Must Make a Decision

[Asia Economy Reporter Minyoung Cha] The three major telecom companies have been engaged in a nearly six-month-long dispute over additional frequency allocation rights. The Ministry of Science and ICT, the main regulatory body, has failed to take a firm stance and has only been cautious of the industry's reactions, ultimately appearing to pass the issue on to the next administration.

The frequency conflict among the three telecom companies was anticipated since July last year. As 5G subscribers surged and frequencies became scarce, LG Uplus requested the allocation of adjacent band frequencies, sparking the dispute. SK Telecom and KT argued that the frequencies were in bands they could not use. Although frequency allocation is conducted through auctions, since only LG Uplus could effectively use the frequencies, competitors collectively opposed the request, claiming it was essentially a demand for preferential allocation. The government initially insisted on proceeding with the frequency auction schedule in February.

However, the situation changed when SK Telecom requested an early allocation of additional frequencies originally scheduled for auction next year. Minister Hyesook Lim suddenly stated that she would "reconsider the opinions of the three telecom companies," and on the 17th, she met with the CEOs of the three companies at the Government Seoul Office to resolve the issue.

The Ministry of Science and ICT expects the three companies to present a mediation proposal, but the industry's atmosphere is quite different. Some say the ministry has been overly optimistic after listening to the three companies' claims for seven months. Amid this confusion, the presidential election in March is just over a month away. According to current law, auction announcements related to frequency allocation must be made at least one month before the auction. Minister Lim is also considering attending the 'Mobile World Congress (MWC) 2022' event in Spain at the end of February, which means she will be away for at least three weeks. This effectively passes the difficult decision to the next administration.

The government held 15 research meetings starting in July last year, held a public hearing earlier this year, and convened another research meeting this year. A telecom industry official lamented, "The government just needs to make a decision, but thinking about passing it on to the next administration is frustrating."

As the telecom industry fights over frequency rights and the Ministry of Science and ICT shows indecisiveness, public distrust in 5G continues to grow. The promised expansion of base stations has not been fulfilled, and many people still use LTE because 5G service is unavailable, resulting in dissatisfaction. The US and China are expanding network investments to secure a competitive edge beyond 5G into 6G. South Korea can no longer rest on the past glory of being the 'world's first 5G.'

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