Samsung Electronics Co.’s Galaxy S21 series smartphones, which support 5G networks, are on display at a store in central Seoul, in this file photo taken Jan. 15, 2021. (Yonhap)
SEOUL, Jan. 4 (Korea Bizwire) — South Korea’s ICT ministry said Tuesday it will open an auction next month for additional 5G network frequency bands used by the country’s major mobile carriers.
In December, the ministry agreed to open bidding for additional 5G network in the 3.4- to 3.42-gigahertz spectrum as requested by LG Uplus, the smallest mobile carrier.
The ministry said that the price of the 20 megahertz (MHz) to be distributed at the auction will be set at 135.5 billion won (US$113.5 million), reflecting the bidding price from the 2018 auction.
In June 2018, the ICT ministry completed an auction for 5G network frequencies by the country’s three mobile carriers, including the top mobile carrier SK Telecom Co. and No. 2 player KT Corp.
SK Telecom and KT each won 100 MHz in the 3.5 GHz wavelength that can provide better service at longer distances, with LG Uplus settling for 80 MHz.
The total bidding price of the 280 MHz at the 2018 auction — allowed for use for 10 years until November 2028 — was 3.68 trillion won. The expiration date for the additional 20 MHz to be distributed at next month’s auction remains the same at November 2028.
The government will also require the winning carrier to install over 150,000 5G base stations by 2025.
SK Telecom and KT have complained about the ICT ministry’s decision on the additional bidding, saying that it marks the first time an auction will be opened upon request by a single mobile carrier.
They also claim that it was LG Uplus’ own decision to bid for only 80 MHz in 2018.
Industry watchers said LG Uplus is at a relative advantage as it will considerably cost more for SK Telecom and KT to utilize the spectrum even if they win the bid.
As of November last year, the number of smartphone users on 5G mobile networks had topped 20 million for the first time since the service was commercialized in 2019.
(Yonhap)
