4th Mobile Carrier Condition '28GHz' Frequency Allocation Announcement... Minimum Competitive Price 74.2 Billion KRW

Frequency Prices at One-Third Level During Allocation to the Three Major Telecom Companies
Network Construction Obligation Set at 6,000 Units Nationwide
Participation Restricted for the Three Major Telecom Companies

On the 20th, the Ministry of Science and ICT announced the 28 GHz frequency allocation plan to resolve the telecommunications market monopoly and attract a fourth mobile carrier. The minimum price for the frequency is set at around 70 billion KRW nationwide, which is one-third of the price when the three major telecom companies were allocated frequencies five years ago. The three telecom companies whose 28 GHz frequency allocations were canceled due to failure to fulfill network construction obligations are restricted from participating.

Specifically, the frequencies to be allocated include an 800 MHz bandwidth in the 28 GHz band (26.5?27.3 GHz) and a 20 MHz bandwidth anchor frequency in the 700 MHz band (738?748 MHz and 793?803 MHz). Initially, the 700 MHz and 1.8 GHz bands were considered as candidate bands for the anchor frequency, but at the public expert forum held on the 11th with industry, academia, and research experts, it was concluded that the 700 MHz band is more appropriate considering the characteristics of the anchor frequency used for signal control and investment efficiency, thus finalizing the 700 MHz band.

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The Ministry of Science and ICT restricted participation by the three telecom companies whose allocations were canceled due to failure to fulfill network construction obligations to promote competition in the telecommunications market and guarantee market entry opportunities for new operators. Only new operators can apply for the allocation. The frequency bands announced for allocation this time will be supplied exclusively to new operators for the next three years, allowing them to continuously consider market entry.

Regarding the frequency usage period, an appropriate period is granted so that new operators can provide services after network construction, but considering the expected commercialization schedule of 6G (2028?2030), the period was set at five years from the allocation date.

The Ministry of Science and ICT also allowed simultaneous applications for nationwide and regional allocations. The nationwide allocation procedure will be prioritized, and if no nationwide operator is selected, the regional allocation procedure will be pursued.

The frequency price was calculated considering the current economic value of the 28 GHz frequency. The minimum competitive price on a nationwide basis is 74.2 billion KRW. This is about one-third of the minimum competitive price of 270.2 billion KRW when the three mobile carriers were allocated 5G frequencies in 2018. The minimum competitive price for regional units was calculated to be between 1.8 billion and 33.7 billion KRW, reflecting factors such as population and area of each region.

The allocation fee will be accepted in installments to alleviate the initial burden on new operators. However, if new operators wish to pay the allocation fee early, early payment will be allowed in consultation with the Ministry of Science and ICT according to related notices.

Regarding the network construction obligation, 6,000 units of 28 GHz base station equipment must be constructed nationwide by the third year from the allocation date. For regional units, the number is set between 148 and 2,726 units, considering factors such as population and area.

The application period is about one month, from November 20 to December 19. The Ministry of Science and ICT explained that sufficient time was provided so that potential new operator candidates can review their market entry decisions.

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