KT·LGU+ Cannot Use 5G 28GHz Frequency Starting Today... Final Allocation Cancelled

Ministry of Science and ICT Finalizes Disposition
SKT's Service Period Reduced by 6 Months

[Image source=Yonhap News]

[Asia Economy Reporter Oh Su-yeon] The Ministry of Science and ICT has issued a final cancellation order for the allocation of the 28 GHz band frequency to KT and LG Uplus.

On the 23rd, the Ministry of Science and ICT announced that it had completed the compliance inspection of the allocation conditions imposed during the 2018 5G 28 GHz band frequency allocation, as well as the opinion hearing procedures under the Administrative Procedures Act, and finalized the disposition details accordingly.

Based on the evaluation results of the Compliance Inspection Evaluation Committee, on November 18th last year, the Ministry gave prior notice of sanctions for non-compliance with allocation conditions to the three telecom companies. On the 5th of this month, a hearing (presided over by Attorney Kim Hu-gon of the law firm Robax) was held to hear the opinions of the subjects before the final disposition. During the hearing, the three telecom companies expressed regret for failing to meet the allocation conditions but did not raise any objections to the pre-notified disposition.

The Ministry accepted the hearing chairperson’s opinion that since the three telecom companies did not request any changes to the disposition during the hearing and there were no changes in circumstances warranting mitigation, it was reasonable to maintain the pre-notified disposition. SK Telecom was notified of a 10% reduction (6 months) in the usage period (5 years) and that if it fails to build the originally allocated 15,000 devices by May 31 next year, before reallocation application, the allocation will be canceled. LG Uplus and KT were given final notices of allocation cancellation.

With the cancellation order, KT and LG Uplus must cease use of the 28 GHz band as of today. However, regarding the subway Wi-Fi that currently uses the completed 28 GHz band as backhaul, both KT and LG Uplus expressed their intention to responsibly continue construction and operation, honoring their promise to the public. Considering the hearing results recognizing the need for exceptional measures for subway Wi-Fi and the public interest in improving convenience, the Ministry will exceptionally allow frequency use on the subway lines that each company has committed to build and operate until the original allocation period ends on November 30 next year.

Additionally, during the hearing, LG Uplus requested a replacement period for equipment necessary to continue the service of a demonstration project using the 28 GHz band. Taking into account the hearing results emphasizing the need to provide minimal time to prevent damage to the user institution, the Ministry decided to temporarily allow frequency use for this project only, for up to four months.

The three telecom companies originally agreed to build a total of 45,000 28 GHz base stations by the end of last year when they received the 2018 5G frequency allocation, but only 5,059 were constructed. In October, the Ministry announced the results of the 5G frequency allocation condition compliance inspection, notifying KT and LG Uplus of the 28 GHz allocation cancellation and SK Telecom of a 10% (6 months) reduction in usage period (5 years).

Meanwhile, the Ministry plans to actively promote the entry of new operators for one of the two canceled bands. Specific measures will be announced in January next year after further review to enable substantial and diverse support for new operators. The Ministry will continue discussions on this matter through the '28 GHz New Operator Support Task Force (TF)'.

Along with the announcement of the final disposition, the Ministry stated that if SK Telecom completes the originally allocated 15,000 device installations by May 31 next year, it will complete the reallocation procedures in advance so that SK Telecom can use the 28 GHz band frequency from June 1 without service continuity issues. The Ministry will accept reallocation applications from the end of April next year and select and notify the reallocation target corporations by the end of May.

Choi Woo-hyuk, Director of the Radio Policy Bureau at the Ministry of Science and ICT, said, “Despite various government efforts, it is regrettable that this final outcome has occurred. We will prepare and implement various support measures to encourage new operators to enter the canceled 28 GHz band and continuously strive to activate competition in the telecommunications market so that the public can enjoy higher-level 5G services.”

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