StageX "Scheduled 100 Billion Won Paid-in Capital Increase... No Funding Issues" (Comprehensive)

StageX Press Conference Held on the 7th
"Launching Disruptive Pricing Plans and Providing Real 5G"
Strong Confidence Expressed Despite Funding Concerns

StageX (StageFive Consortium), selected as the 4th mobile carrier, has expressed its ambition to innovate technology and services in the telecommunications industry as a 'deep tech' carrier. Regarding concerns about financial capability that have been raised since before the new operator selection, the company showed confidence that these can be sufficiently resolved through installment payments for the frequency auction price and capital increases exceeding 100 billion KRW.

Seo Sang-won, CEO of StageX, attended the 'StageX Media Day' held on the 7th at Fairmont Ambassador Seoul in Yeouido, Seoul, and introduced the 28GHz communication business strategy. Photo by Kang Jin-hyung aymsdream@

On the morning of the 7th at 10 a.m., Seo Sang-won, CEO of StageX, held a press conference at the Fairmont Ambassador in Yeouido, Seoul, and announced the business strategy to become "a new deep tech carrier that innovates technology and services." StageX was selected as the frequency allocation target corporation on the 31st of last month through a 5G mobile communication service 28 GHz band frequency auction narrowed down to a two-way competition with MyMobile (Mirae Mobile Consortium). CEO Seo presented three guiding principles for StageX: ▲ customer-centric revolutionary rate plans ▲ real 5G communication experience through innovative technology ▲ a trustworthy carrier for everyone.

Create customer-centric revolutionary rate plans

CEO Seo stated that he will change the rate plan structure and device distribution method from a supplier-centered approach to a consumer-centered one. He said, "A customer-centric rate plan is not about adding something customers need, but boldly removing what they do not need," and added, "We plan to offer revolutionary pricing rate plans by changing various fees and distribution structures."

He also announced innovation in facility and infrastructure investment. The entire core network responsible for operating carrier services will be virtualized on the cloud to secure scalability, availability, and cost-effectiveness, enabling rapid construction at efficient costs. CEO Seo said, "We have been preparing essential core network development since 2022," adding, "At that time, it was for full MVNO operators, but technically, there is almost no difference from the core network for the 4th mobile carrier."

He is also planning to introduce artificial intelligence (AI) technology to reduce costs. The plan is to have AI technology handle all operations from network quality management to customer service to reduce expenses. CEO Seo said, "StageFive is already using AI technology in business operations," and added, "If StageX pursues similar efforts to achieve additional rate reductions and profitability improvements, we believe the company can sustain its operations."

Provide 'Real 5G Service' on 28 GHz... Device launch planned

They announced plans to offer 'real 5G service' using the 28 GHz frequency secured through the auction. They expressed confidence in providing hotspot-centered Wi-Fi with technology more advanced than when the 28 GHz band was first supplied to the three major carriers in 2018. StageX expects the 28 GHz frequency to have strengths in ultra-high speed, ultra-low latency, and ultra-connectivity in dense areas such as concert halls, hospitals, schools, and airports.

They also revealed detailed plans for 28 GHz device supply. They intend to actively work with the Ministry of Science and ICT to enable the use of 28 GHz-supported devices like Galaxy and iPhone models already released in North America in Korea. Additionally, they plan to develop StageX-exclusive 28 GHz-equipped devices in collaboration with Foxconn. CEO Seo said, "We plan to launch domestic devices under two or more new brands this year," adding, "In cooperation with Foxconn, we will expand to reasonably priced devices equipped with antennas for the 28 GHz band in time for the service launch next year." They also plan to release the industry's first telecommunications 'super app,' differentiated from existing telecom apps that were simply used for data usage and membership point inquiries.

Seo Sang-won, CEO of StageX, attended the 'StageX Media Day' held on the 7th at Fairmont Ambassador Seoul in Yeouido, Seoul, introducing the 28GHz communication business strategy. Photo by Kang Jin-hyung aymsdream@

"Financial concerns? No problem"… installment payment for allocation fees and planned capital increase

Regarding ongoing concerns about financial capability since before the frequency auction, they responded with disclosure of specific investment costs. CEO Seo said, "We plan to invest a total of 612.8 billion KRW for the 28 GHz frequency allocation cost and the mandatory installation of 6,000 base stations, which is about 5.5% of the 5G investment amount of other carriers. Excluding government policy funds, we have prepared 400 billion KRW in initial capital and are closely negotiating Series A capital increases with domestic and foreign investment companies in line with the service launch schedule."

He added, "Although the frequency cost is 430.1 billion KRW, we do not plan to pay all costs this year but will pay 10% in installments, and we plan to raise more than 100 billion KRW in capital increases this year, so there is no business problem." StageX expects to achieve a positive turnaround with sales exceeding 1 trillion KRW three years after service launch.

StageX and StageFive will operate as separate corporations. CEO Seo said, "StageFive will enhance services as a full MVNO and steadily prepare for an initial public offering (IPO)," adding, "We will look for areas where both companies can create synergy."

StageX plans to complete corporate establishment within the second quarter of this year and aims to launch nationwide network communication services in the first half of next year. Afterwards, they plan to additionally secure mid-to-low band frequencies and build their own network. CEO Seo said, "We will not be the fourth carrier but a completely new carrier," and added, "We will hold a separate business plan briefing to explain detailed information about StageX, including consortium participating companies, personnel plans, sales, and subscriber targets."

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