3G and LTE Frequencies Expiring Next Year: Reassignment Fees to Be Cut by 15%

Mandatory Transition to 5G Standalone Mode
and Expansion of Indoor Base Stations

The government has finalized a plan to reduce the reassignment fees for 3G and LTE frequencies, which are set to expire in 2026, by approximately 15%, while also mandating the transition to 5G Standalone (SA) mode.

On December 10, the Ministry of Science and ICT officially confirmed the detailed policy for the reassignment of mobile communication frequencies (a total of 370 MHz). The key measures include differentiating the usage periods by frequency band to prepare for the commercialization of 6G and the era of artificial intelligence (AI), as well as imposing new requirements such as mandatory adoption of 5G Standalone mode and expanding 5G indoor base stations.

The Ministry of Science and ICT prepared this policy after holding a public briefing on December 1 and consulting with the Radio Policy Advisory Committee. The focus of this plan is to guide the evolution of mobile communication networks in the necessary direction, taking into account the changing technological environment, such as the introduction of 6G and the expansion of AI services, while minimizing inconvenience for users after reassignment.

The government has set a three-year usage period (until 2029) for frequency bands that are expected to require future reorganization, such as the 1.8 GHz (20 MHz) and 2.6 GHz (100 MHz) bands. The remaining bands have been set at five years to protect existing users. In addition, telecommunications companies are given the option to choose their strategy for using LTE and 3G frequencies, and if there is no impact on user protection, some LTE bands may have their usage period shortened by one year. Even for reassigned frequencies, if there are no technical issues, the relevant notifications will be revised to allow for early conversion to 5G or higher technologies.

Impact of 5G Standalone (SA) Deployment and Expansion on Reassigned Frequencies. Image provided by the Ministry of Science and ICT

The reassignment fee has been set at approximately 3.1 trillion won, which is 14.8% lower than the previous standard price (about 3.6 trillion won), reflecting the impact of 5G SA expansion on the value of LTE frequencies. This reflects the research panel's conclusion that, under the 5G NSA system, 4G frequencies must inevitably be used, and therefore, the transition to standalone networks should be promoted. Accordingly, all 5G base stations built to date must be connected to 5G standalone core equipment by the end of 2026, and all future 5G base stations must also be connected to standalone core equipment.

Additionally, to improve 5G quality and enhance indoor services, an incentive has been introduced to further reduce the reassignment fee if telecommunications companies build 10,000 or 20,000 or more new 5G indoor base stations during the reassignment period. If more than 20,000 are constructed, the final fee will be reduced to about 2.9 trillion won.

The government also acknowledged the need for additional 5G frequency supply, but stated that a concrete supply plan would be proposed once demand from operators becomes clear, as current demand remains uncertain. Oh Yongsoo, Director General of Radio Policy at the Ministry of Science and ICT, said, "This policy is the result of careful consideration to achieve both user protection and frequency efficiency. We hope that the advancement of domestic mobile communication networks will support Korea's leap to become one of the world's top three AI powers and improve service quality."

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