SEOUL, Jan. 23 (Korea Bizwire) — The government will offer telecom providers discounted prices for the use of 5G frequency bands in a move to encourage data plan price cuts.
The Ministry of Science and Technology announced plans on Sunday to push through with reforms to the radio waves act, laying the legal groundwork for incentives available to mobile carriers that lower the price of monthly plans.
What stands out in the comprehensive telecommunications reform is a clause for the proposed incentives on offer to telecom networks during the 5G frequency ban auction process in return for price cuts.
The new clause will take into consideration a mobile carrier’s effort to reduce data costs for its users, requiring each provider to submit plans and records of price reduction efforts.
“We have established a legal basis to encourage telecom operators to revise and reduce the cost of data on their own,” the science ministry said.
The proposed reforms also include changes to the way prices for the 5G frequencies are established, as well as the frequencies necessary for broadband networks.
South Korean telecom providers will be able to choose between a number of ways to pay for the use of 5G frequencies, in order to shed the financial burden imposed on them in the early stages of promoting the widespread use of 5G networks in the country.
“It is hard to predict bandwidth after 5G frequencies are allotted to telecom networks. Given these concerns, we have set out a reform plan,” the Ministry of Science and Technology said.
The government previously faced accusations of excessively commercializing the auction process of 5G frequencies, after the total bid price for LTE frequency bands amounted to 2.1 trillion won in 2016.
So far, the government has made nearly 6.3 trillion won in profit from bandwidth allocation to mobile network operators.
The revised radio frequency bill will be examined by experts and government officials before being passed.
Ashley Song (email@example.com)