The Fourth Mobile Carrier Still Faces Financial Concerns... Government Repeats Only Fundamental Stance

May 5 Ministry of Science and ICT 28GHz Frequency Auction Backbriefing
"Monitoring Planned for Network Construction Investment Progress"
Regarding Dedicated Device Supply, "No Need to Worry"

The government responded to recent concerns about the financial capability of the newly selected 4th mobile carrier and the possibility of market failure by stating that it "depends on the role of the new operator." Considering some of the concerns, the government plans to closely monitor whether the new operator is properly fulfilling the allocation conditions.

On the morning of the 5th at the Government Sejong Complex, (left) Kim Kyung-man, Director of Communication Policy at the Ministry of Science and ICT, and (right) Kim Kyung-woo, Head of Radio Policy Planning, are conducting a '28 GHz Band Frequency Auction Follow-up Measures Back Briefing.' Photo by Hwang Seo-yul chestnut@

On the 5th, Kim Kyung-man, Director of Telecommunications Policy at the Ministry of Science and ICT, said at a '28 GHz Band Frequency Auction Follow-up Measures Backbriefing' held at the Government Complex Sejong, in response to a question about whether there are plans to improve the evaluation amid concerns over financial and technical capability verification, "I hope we can distinguish between the government's domain and the responsibilities of the company when looking at the new operator."

He added, "Efforts to establish competitiveness, financial capability, and unique business plans of the new operator are not something the government can provide, but rather the role of each individual operator," expressing a fundamental stance.

However, the Ministry of Science and ICT plans to closely monitor concerns such as the progress of network construction investment and non-fulfillment of business conditions. Director Kim said, "We will continuously follow up on the progress related to business models and network construction and review what systems should be applied." Ma Jae-wook, Head of the Telecommunications Policy Planning Division, stated, "The new operator must start business within one year; otherwise, registration can be canceled."

On the 31st of last month, StageX (StageFive Consortium) was selected as the frequency allocation entity through the 28 GHz band frequency auction. Following Sejong Telecom's mid-way withdrawal, the auction proceeded as a two-way contest between MyMobile (Future Mobile Consortium) and StageX. Despite 50 rounds of the first-stage multi-round bidding, no winner emerged, leading to a sealed bid decision, with the winning bid set at 430.1 billion KRW.

The Ministry of Science and ICT reiterated its previous position regarding consideration of financial soundness, stating that it examined whether there were disqualifying reasons under the Radio Waves Act and the Telecommunications Business Act. Eligibility was reviewed based on whether the conditions presented at the time of the frequency allocation announcement were reflected in the frequency usage plans submitted by the applicant companies. Director Kim said, "Since it was conducted under a registration system, financial soundness was not evaluated," adding, "I believe the bidders had some judgment regarding the unexpectedly high winning bid."

If the new operator faces difficulties settling in the market, the government plans to actively support them. The Ministry of Science and ICT has stated that the new operator will be allowed to share other companies' networks (roaming) and will be supported with up to 400 billion KRW in policy financing, tax credits, and device distribution. On this day, the ministry announced that it is operating a working group to prepare a roaming-related notice and is considering providing policy funds at a low interest rate of around 1%. Regarding additional allocation of mid-to-low band frequencies, a support task force (TF) for the new operator has been formed and is operating, and if StageX establishes sufficient business viability in the 28 GHz band, supply will be considered.

The government plans to intervene in the supply of dedicated 28 GHz devices if the new operator desires. Kim Kyung-woo, Head of Radio Policy Planning Division, said, "Samsung Electronics is developing and supplying 28 GHz band devices to the U.S. carrier Verizon, so there is no need to worry much." Ha Jun-hong, Head of Frequency Policy Division, added, "If the new operator requests the government to meet with overseas device manufacturers, there is no reason not to do so."

Meanwhile, the government also stated that it will decide whether to supply the 28 GHz band, which was supplied to and then reclaimed from the three major mobile carriers, considering market conditions.

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