The three major mobile carriers will each build more than 120,000 5G wireless stations
3G and LTE frequency band 5-year usage fee minimum '3.17 trillion'


The discussion on frequency reallocation has come to an end. The three mobile carriers will have to pay between a minimum of 3.17 trillion won and a maximum of 3.77 trillion won, depending on the number of 5G radio stations they build, in exchange for reusing 310 MHz of the 320 MHz 3G and LTE frequency bands that expire in 2021 for the next five years.

On November 30, the Ministry of Science and ICT finalized the detailed policy plan for reallocation of mobile communication frequencies containing these contents, and SK Telecom, KT, LG Uplus, etc. accepted it.

Last June, the Ministry of Science and ICT decided to reallocate the relevant frequency band for 4.4 trillion won. However, the three mobile carriers insisted on 1.6 trillion won as the fair price, and the two sides' positions were at odds.

On November 17, the Ministry of Science and ICT held a briefing session for the three mobile carriers and decided to reduce the frequency allocation fee by up to a total of 3.17 trillion won if each carrier builds more than 150,000 5G wireless stations by 2022. However, the three mobile carriers expressed their opinion that this is not realistically possible. Accordingly, the conditions were adjusted to build 120,000 5G wireless stations including roaming by the three mobile carriers.

Currently, LTE frequencies are being used for 5G services. The Ministry of Science and ICT's reallocation research team, considering that it is difficult for LTE subscribers to switch to 5G without 5G investment and network construction, and that the value of LTE frequencies fluctuates depending on 5G investment, determined that setting the reallocation fee differently depending on the level of 5G radio station construction would best reflect the economic value of the frequencies subject to reallocation.

The Ministry of Science and ICT stated, “This reallocation price (at least 3.17 trillion won) is about 25% lower than the previous allocation price (4.2 trillion won),” and the three mobile carriers also stated, “Although the overall conditions are disappointing, we will work to ensure the stable operation of 3G and LTE services and to activate 5G investment through this reallocation.”

Meanwhile, the detailed policy plan for this frequency reallocation also includes an appropriate usage period for the reallocated frequency, allowing the three mobile carriers to apply for reallocation six months before the expiration of the frequency usage period.

In order to secure a wideband 5G frequency of 160㎒ in the 3㎓ and below bands by 2026, the usage period of the 2.6㎓ band was fixed at 5 years, and for other bands, telecommunications companies were allowed to flexibly select the usage period between 5 and 7 years according to the usage situation and characteristics of each band.

In addition, considering the possibility of creating spare frequencies due to early transition to 5G, the period of use for one band per operator among the 2.1 GHz and 2.6 GHz bands can be shortened to three years.