StageX, which was on the verge of bankruptcy, was ultimately stripped of its qualification as a candidate for the 4th mobile carrier.

The Ministry of Science and ICT announced on the 31st that it had finalized the decision on July 31, 2024, as the hearing process under the Administrative Procedures Act regarding the cancellation of the selection of StageX as a frequency allocation target company, which had been notified in advance to StageX, was completed.

StageX won the bid for the frequency band for 430.1 billion won in January, with the goal of building a nationwide 5G 28GHz network. However, the Ministry of Science and ICT announced in June that it would cancel StageX's selection as a frequency allocation target company, citing issues with its unsecured capital and constituent shareholders.

StageX, which had been preparing the corporation together with the consortium, has been strongly opposed to this.

However, the Ministry of Science and ICT held a hearing on June 27th (presided over by attorney Song Do-young of Beat Law Firm) as scheduled to hear StageX's opinions. StageX went through the hearing minutes review, confirmation, and correction procedures stipulated by the Administrative Procedures Act from July 17th to 18th. The hearing presiding officer submitted the hearing minutes and the hearing presiding officer's opinion to the Ministry of Science and ICT on July 24.

The hearing committee chairperson submitted the opinion that “StageX, as a frequency allocation target company, has failed to comply with the requirements stipulated in the Radio Act and other related regulations and has violated the pledge, so cancellation of selection is appropriate.”

The Ministry of Science and ICT reviewed the opinions of the hearing chairperson and notified the final decision to cancel the selection of the allocation target corporation on July 31.

All frequency allocation fees paid by StageX were also returned.

The Ministry of Science and ICT announced, “We plan to form and operate a research team comprised of academic experts in the fields of economics, management, law, and technology, as well as experts from related organizations, to examine whether there are any institutional shortcomings using this case as an opportunity and to comprehensively discuss ways to improve the frequency allocation system and future telecommunications policy directions.”

StageX expressed “deep regret” regarding the cancellation notice on this day.

Meanwhile, the industry is divided on StageX's re-entry into the 4th mobile carrier market. Although the three mobile carriers were restricted from re-participating after returning all of the 28GHz they had been allocated in 2018, the case of StageX is different.

Kang Do-hyun, 2nd Vice Minister of Science and ICT, said in a previous statement, “The three mobile carriers were restricted from participating for three years at the time, but if a new allocation is started, we need to prepare for some system improvements to allow re-participation.”

However, even if StageX is able to re-participate after the cancellation of the 4th mobile carrier, it is predicted that the process will begin again from the auction.

Meanwhile, industry experts all agree that commercializing a nationwide 5G network based on 28GHz is currently difficult. Nokia, which hosted the previous Amplify Korea conference, stated, "There are currently no nationwide 28GHz networks built worldwide, and the 28GHz frequency characteristics suggest that it is only suitable for densely populated areas supporting large-scale data processing."

As expectations and concerns about the fourth mobile carrier coexisted, many consumers are expressing deep disappointment. The Ministry of Science and ICT should comprehensively revise its policy direction to stimulate competition in the telecommunications market and be cautious in devising practical measures to improve the frequency allocation system.