The Ministry of Science and ICT has finalized the frequency allocation plan for the fourth mobile carrier.

On the 20th, the Ministry of Science and ICT finalized its frequency allocation plan to allocate the 28 GHz band to new operators and announced the allocation plan.

This was promoted based on the policy of the '5G 28GHz New Business Entry Support Plan' in January and the 'Measures to Promote Competition in the Telecommunications Market' on July 6. Additionally, the Ministry of Science and ICT announced that it held a public discussion on July 11th and reflected the discussions of stakeholders regarding the allocation plan.

The allocated frequencies were confirmed to be 800MHz wide (26.5-27.3GHz) in the 28GHz band and 20MHz wide (738-748/793-803MHz) in the 700MHz anchor frequency band.

The anchor frequency was considered to be the 700MHz band and the 1.8GHz band, but it was reported that an open discussion attended by experts from industry, academia, and research institutes, as well as consumer groups, reflected the opinion that the 700MHz band was appropriate when considering the characteristics of the anchor frequency used for signal control and other purposes, as well as investment efficiency.

This announcement determined that participation by the three telecommunications companies, including those whose allocations were canceled due to failure to fulfill network construction obligations, will be restricted. The frequency bands allocated this time will be provided as exclusive bands for new operators for the next three years. The frequency usage period was set at five years from the allocation date, taking into account factors such as the 6G commercialization schedule (expected between 2028 and 2030).
The allocation method is based on an auction in accordance with the Radio Waves Act, but in cases where there is no competitive demand, such as when a single operator bids alone, it is converted to allocation at a government-assessed price through examination in accordance with the proviso to Article 11, Paragraph 1 of the Radio Waves Act.

Applications for national and regional allocations can be submitted separately or simultaneously. The national allocation process will be prioritized. However, if a national operator is not selected, the regional allocation process will be pursued.

In accordance with the Radio Waves Act, the minimum competitive price for a nationwide auction was calculated to be 74.2 billion won, taking into account the economic value of the current 28 GHz band frequency. The lowest competitive price by region is 33.7 billion won in the metropolitan area and 10.5 billion won in the southeastern region, reflecting factors such as population and area of each region.

We will continue to adjust the allocation fee installment payment ratio, focusing on the later payment period, to address the current allocation fee payment method, which can increase the perceived entry barrier for new businesses. If new businesses wish to pay their allocation fee early, they will be permitted to do so through consultation with the Ministry of Science and ICT, pursuant to relevant public notices.

The network construction obligation for the allocation conditions is three years from the allocation date, and the operator receiving the allocation must install 6,000 28GHz base station equipment nationwide. Regionally, this includes 2,726 units in the metropolitan area and 852 units in the southeastern region.

Meanwhile, the Ministry of Science and ICT will accept applications for frequency allocation for approximately one month, from November 20 to December 19, 2023. The intent is to provide sufficient time for potential new business candidates to consider whether to enter the market.

Minister of Science and ICT Lee Jong-ho said, “Since the Emergency Economic and People’s Livelihood Council in February, the government has been preparing measures to promote competition in the telecommunications market and increase public convenience, and we expect that this allocation announcement will allow new operators to enter the market and improve the competitive structure of the telecommunications market,” adding, “We will continue to discover competitive new operators that provide differentiated services through the 28GHz band.”