"Fair Competition" "Thorough Business Preparation" Who Is the Fourth Telecom Operator?

28GHz Frequency Auction Procedures Begin
Each Company Expresses Determination to "Do Their Best"
Auction May Take More Than a Week

The auction process to select the 4th mobile carrier utilizing the 28 GHz band frequency for 5G mobile communication has begun.

On the 25th, when the frequency auction for selecting the 4th mobile carrier began, Yoon Ho-sang, CEO of MyMobile, one of the three companies participating in the auction, is answering reporters' questions at the IT Venture Tower in Songpa-gu, Seoul. Photo by Jo Yong-jun jun21@

On the morning of the 25th, the Ministry of Science and ICT started the auction for the 28 GHz band frequency at the IT Venture Tower in Songpa-gu, Seoul. Three corporations?Sejong Telecom, StageX, and MyMobile?that applied for frequency allocation are participating, competing in a maximum of 50 rounds of ascending bids to determine the winner.

The first to arrive, Lee Kwang-mo, Head of Strategic Planning Team (Director) at Sejong Telecom, stated, "We have diligently prepared for the 5G 28 GHz business," and expressed his determination, "We will do our best in this auction."

Previously, Sejong Telecom Chairman Kim Hyung-jin declared, "We will not engage in cutthroat competition," leading to expectations of a two-way battle between StageX, led by StageFive which separated from Kakao, and MyMobile, a consortium led by Mirae Mobile. All three companies remained tight-lipped about their bidding prices and auction strategies.

Among the three companies participating in the frequency auction, Han Yoon-je, Strategy Director of StageX, is answering reporters' questions. Photo by Jo Yong-jun jun21@

Han Yoon-je, Strategy Director at StageX, said, "We have taken sufficient time to prepare," and added, "We will do our best to achieve good results in this auction."

The third entrant, Yoon Ho-sang, CEO of MyMobile, conveyed his resolve: "We will engage in fair competition at a reasonable price for the valuable 28 GHz spectrum and within limits that do not burden the main business."

He also added, "We will make every effort to achieve innovative services together with domestic and international global partners."

The auction proceeds with the two companies, excluding the previous round's winner, competing on price. For each round, the Ministry of Science and ICT sets the minimum bid for the next round by adding up to 3% to the highest bid from the previous round.

The rounds continue until two companies withdraw. If multiple candidates remain after all 50 rounds, the final winner is determined by sealed bidding. The frequency is awarded to the bidder who submits the highest bid above the minimum bid set by the Ministry.

Among the three companies participating in the frequency auction, Lee Kwang-mo, Director of the Strategic Planning Team at Sejong Telecom, is answering reporters' questions. Photo by Jo Yong-jun jun21@

If two companies withdraw in the early rounds, the winner can be decided immediately on the same day; however, if all 50 rounds proceed, the auction process may take more than a week.

This auction starts at 74.2 billion KRW, but the final winning bid is widely expected to be in the 100 billion KRW range. SK Telecom, KT, and LG Uplus previously won the same frequency in early 2018 for just over 200 billion KRW.

All three companies passed the Ministry of Science and ICT’s eligibility screening, but since their funding plans remain undisclosed, there is some skepticism about whether a competitive 4th mobile carrier can emerge.

If allocated this frequency band, the carrier must mandatorily build 6,000 base stations nationwide within three years and implement measures to avoid frequency interference.

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