Some experts are expressing skepticism about the Ministry of Science and ICT’s plan to promote competition in the telecommunications market by discovering new 5G 28GHz operators. Along with expectations for the activation of 5G 28GHz, there is also a growing need to establish safety measures to resolve doubts about the possibility of achieving the original goal of promoting competition in the telecommunications market.

The 'Expert Roundtable on Desirable Mobile Communication Policy Directions: Current Status and Suggestions for New 28GHz Operator Selection' hosted by Democratic Party of Korea Assemblyman Byun Jae-il was held on the 16th in Conference Room 8 of the National Assembly Members' Hall. The roundtable was chaired by Professor Lee Kyung-won of Dongguk University, and the panelists for the discussion included Senior Expert Committee Member Ahn Jeong-sang of the Democratic Party Policy Committee, Professor Mo Jeong-hoon of Yonsei University, Professor Shin Min-soo of Hanyang University, Professor Kwan Gyu-tae of Soonchunhyang University, Director Han Seok-hyeon of the Seoul YMCA Citizens' Relay Center, and Director Ma Jae-wook of the Ministry of Science and ICT's Telecommunication Policy Planning Division.

Prior to the symposium, the government announced the ‘Measures to Promote Competition in the Telecommunications Market’ in July of last year, and recruited new telecommunications operators for 5G 28GHz frequency allocation at the end of last year to activate the 28GHz band and improve the telecommunications market competition structure. Currently, Sejong Telecom, Stage Five, and Mirae Mobile have received ‘qualified’ results for frequency allocation applications, and are scheduled to hold an auction starting on January 25. New operators selected after the auction will receive up to 400 billion won in large-scale government support, including reduced frequency allocation fees, reduced network construction obligations, and provision of roaming and equipment.

■ 28GHz new business operator, desirable direction

At the discussion that day, experts expressed negative opinions about the possibility of new businesses succeeding in the market, citing the applicants’ financial capacity. Professor Mo Jeong-hoon of Yonsei University said, “In the early stages of the mobile communications business, large-scale network construction costs and marketing costs are required, but if financial capacity is insufficient, it will be difficult to obtain business feasibility.” He called the government benefits received by new businesses “asymmetrical regulations,” and added that measures should be prepared to help new businesses acquire self-sustaining capabilities.

Professor Kwak Gyu-tae of Soonchunhyang University pointed out that there are loopholes in the current new business entry system that was reorganized into a registration system in 2019. He argued that institutional supplements should be added to the ‘frequency allocation conditions’ as various concerns about new businesses may be raised.

This controversy arises from the fact that the new operator is operating a 28GHz-based service. Industry experts believe that the 28GHz band frequency characteristics themselves are a difficult band for B2C services. There is no killer content for the 5G 28GHz band, where the three mobile carriers have already failed, and the difference with specialized network operators is unclear.

The head of the Seoul YMCA Citizen Mediation Office said, “The government is using new operators as a means to achieve its primary goal of activating 28GHz, and its intention is to make up for the failure of 28GHz with new operators,” and suggested that the government needs to transparently evaluate the appropriateness of the new operators’ 28GHz policy. Democratic Party's Ahn Jung-sang, a senior expert member of the policy committee, strongly opposed the move, saying, "In order to continue making actual business investments, we need to verify financial capabilities and consider postponing the auction date."

It was also pointed out that there may be conflicts between new operators and low-cost phone policies. New operators currently do not have a nationwide 28GHz network, so they use roaming and other services to provide services. However, there is an opinion that concerns should be resolved that if the benefits are greater than those of low-cost phones, rate competition may intensify.

■ The dice have already been thrown, and the frequency's whereabouts are


Despite demands such as the postponement of the frequency auction schedule, the current government’s position appears to be firm. At the discussion held that day, Ma Jae-wook, head of the Ministry of Science and ICT’s Telecommunication Policy Planning Division, emphasized the need to promote price and service competition by changing the structure of the entrenched telecommunications market.

Manager Ma said, “Since 2016, we have repeatedly relaxed policies to encourage the participation of new businesses, but we have failed every time. However, because of this, the domestic mobile carriers have become fixed at three, which has led to a decline in vitality and no longer allows competition in terms of price and service, so the structure needs to be changed.”

Meanwhile, many of the financial capability verification procedures were omitted when determining the eligibility of an applicant, and it was acknowledged that new businesses provide 28GHz services in hotspot areas and then provide sub-6 bands when requesting nationwide network services. Chief Ma said, “If we become competitive, we will become the fourth mobile carrier that can compete with the three major mobile carriers. We selected the operator through a fair process, and the government’s role afterward has become important.”

Regarding this, an official from the applicant company argued, “The original telecommunications business is a business that initially receives large-scale support from the government.” He also added, “If we point out that small and medium-sized companies receive government investment and challenge the business, it will inevitably become fixed in the end, centered on large companies.” However, he made it clear that in addition to the 28GHz band, he had no choice but to also pursue specialized networks and roaming businesses.

While everyone agrees on the keynote of revitalizing competition in the telecommunications market, the government seems to need to clarify the purpose of new businesses. In 2018, the government supported the 3.5GHz band and the 28GHz frequency for five years to the three mobile carriers, but all three failed to commercialize it. Ultimately, experts all agreed that it would be difficult to apply the 28GHz band, which even large companies had given up on, to commercial networks.

Accordingly, the government needs to transparently disclose the role of the fourth mobile carrier and related policies to consumers and improve areas where support is possible to promote competition in mobile communications. For example, this includes 100% completion of nationwide 5G 3.5GHz band network coverage, expansion of support for 5G specialized network 28GHz band, and review of support measures for low-cost phones.

If the policy is not transparently disclosed to telecommunication consumers who have experienced the burden of telecommunication costs in order to secure their trust in supporting large-scale investments in the fourth mobile carrier, the new operator plan is likely to fail again due to insufficient actual demand.

If the government lacks specific plans for supporting the 4th mobile carrier, consumers who are at the end of the conflict between existing and new operators will be used only in the name of protecting the public's convenience. Therefore, if you aim for low telecommunications rates, you must have a plan that can differentiate you from cheap phones and convince people of the necessity of the 4th mobile carrier.