[Reporter’s Notebook] Even the '7 Wins 8 Attempts' for Selecting the 4th Telecom Operator Is Difficult

If You Don't Assess Financial Capability, the Outcome Is Predictable

Seven attempts, eight failures. The government's search for a fourth mobile carrier is already on its eighth round. The frequency allocation eligibility review process is currently underway, but after observing recent related discussions, it seems unlikely that this will end with just seven attempts and eight failures.

Recently, a "Roundtable on Desirable Mobile Communication Policy Directions" was held at the National Assembly. At this meeting, several experts presented their opinions on the selection of the fourth mobile carrier, with the biggest concern being the financial capability of the candidates. A university professor stated, "It is difficult for new entrants competing for the 28 GHz frequency allocation to attract large amounts of capital, and even if they do, competing with the existing three mobile carriers is nearly impossible, making it highly likely that their business operations will not succeed."

The financial capability issue arose because the government changed the selection method for the fourth mobile carrier from a licensing system to a registration system. After all seven previous selection processes resulted in candidates being disqualified for 'failing to meet the minimum score,' the government decided not to consider financial capability. A political party official attending the meeting said, "Under the registration system, financial capability is not separately evaluated."

However, a company's financial strength is crucial for new businesses. Especially for mobile carriers, where advanced infrastructure determines service quality, large initial investments are essential. An expert at the meeting said, "Entering the mobile communication industry requires a minimum investment of 1 trillion won."

If the fourth mobile carrier is selected without properly assessing financial capacity, the outcome is predictable. They are likely to fail to provide satisfactory services, fail to survive independently, and become dependent on government support measures.

A Ministry of Science and ICT official attending the discussion said, "The government's role after selection seems to have become very important." Instead of evaluating financial capability upfront, the approach is to respond if problems arise after selection.

The ultimate goal of creating a fourth mobile carrier was to reduce the public's communication costs by improving competition in the telecommunications market. However, observing the process, the means have become the end. It is necessary to take this opportunity to revise the frequency auction-related laws to establish measures for verifying financial capability, technology, and business capacity.

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