New 5G 28GHz Frequency Allocation Plan Revealed with 74 Billion Won Price Tag
By Kim Dong-il, Correspondent
Ministry Discusses Mandatory Base Station Construction and Allocation Price
Source: Ministry of Science and ICT
The Ministry of Science and ICT held a public discussion on the “5G 28GHz New Operator Frequency Allocation Plan” at L Tower in Seoul’s Seocho-gu on the 11th. During this event, it was announced that the cost of allocating the 5G 28GHz band nationwide would amount to approximately 74 billion won. This price represents only a third of the lowest bid of 207.2 billion won made by the three major telecommunications companies in 2018 when they obtained the same frequency allocation.
The allocation price serves as a contribution to the government in exchange for the right to use the frequency. In the case of regional units, the payment varies depending on the area. Specifically, the metropolitan area pays 45%, Gangwon area 6%, Chungcheong area 11%, Daegyeong area 11%, Honam area 11%, Southeast area 14%, and Jeju 2%.
It’s important to note that this allocation price is the minimum and applies only when there is no competing demand. When multiple parties show interest, the allocation price is determined through an auction process, where the highest bidder wins.
In addition to the allocation price, the Ministry of Science and ICT has introduced an obligation for new operators to build base stations. Under this plan, a total of 6,000 base stations must be constructed nationwide within three years. This requirement represents 40% of the original condition set for the three major telecommunications companies when they acquired the frequency allocation for this band.
The Ministry of Science and ICT emphasized that new operators in the 28GHz band must commence their business within one year of receiving the frequency allocation. Failure to do so will result in the cancellation of their key communication business registration. If the telecommunications business registration is revoked, the frequency allocation will be invalidated, and the allocation price will not be refunded.
Choi Woo-hyeok, head of the Radio Policy Bureau at the Ministry of Science and ICT, stated during the forum, “We have devised a frequency allocation plan that lowers the entry barrier for new operators in the market.”
Unauthorized reproduction and redistribution are strictly prohibited. (2023-07-11 16:57:29)
74 billion won for 5G 28GHz allocated by the 4th mobile operator… ‘Third’ of the auction price of the three mobile carriers
Correspondent Kim Dong-il
Enter 2023-07-11 16:57:29 Edit 2023-07-11 16:57:29
Ministry of Science and ICT, ‘5G 28GHz New Operators Frequency Allocation Plan’ Public Discussion
6,000 units in the third year of mandatory construction of base stations… 40% of the current 15,000 units
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The government estimated that the cost of allocating the 5G 28GHz band across the country was about 74 billion won. This is a third of the lowest price of 207.2 billion earned at the time of frequency allocation to the three telecommunications companies in 2018.
On the 11th, the Ministry of Science and ICT held an open discussion on the ‘5G 28GHz new operator frequency allocation plan’ held at L Tower in Seocho-gu, Seoul and made the announcement.
The allocation price is a contribution to the government in return for granting the right to use the frequency. In the case of regional units, compared to the national payment, the metropolitan area is 45%, Gangwon area 6%, Chungcheong area 11%, Daegyeong area 11%, Honam area 11%, Southeast area 14%, Jeju 2%.
However, this is the lowest allotment price and applies when there is no competing demand. When there is multiple demand, the successful bid price according to the auction is used as the allocation price.
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In addition, the Ministry of Science and ICT introduced the obligation to build base stations for a national allocation of 6,000 units based on the third year. This is 40% of the 15,000 base station construction conditions originally proposed by the government when allocating frequencies in this band to the three telecommunications companies.
The Ministry of Science and ICT explained that the new operators of the 28 GHz band must start their business within one year from the date of receiving the frequency allocation, otherwise the key communication business registration will be cancelled. If the registration of the telecommunications business is cancelled, the frequency allocation will be canceled and the allocation price will not be returned.
Choi Woo-hyeok, head of the Radio Policy Bureau at the Ministry of Science and ICT, said at the forum “We have prepared a frequency allocation plan that lowers the threshold for new operators to enter the market.”
[CEO스코어데일리 / 김동일 기자 / same91@ceoscore.co.kr]
Unauthorized reproduction-redistribution prohibited > 2023-07-11 16:57:29
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