In an unprecedented move, the South Korean government announced it would cancel the 5G millimeter wave spectrum allocated to local telecoms due to a lack of investment in the sector. ZDNet reported that the government’s decision hinged on operators not meeting build requirements, including the number of 28 GHz base stations promised in 2018.
South Korean telecoms KT and LG Uplus will completely lose their rights to the 28 GHz spectrum. SK Telecom, the country’s largest mobile operator, will see a reduced timeframe to use the spectrum, cut by six months. The continued use of spectrum for SK is contingent upon its building out of 15,000 base stations by May 2023. All three companies secured the rights to the spectrum during a 2018 auction, but according to the government, spending on 5G network rollout has slowed.
According to the ministry, the government continuously encouraged the three operators to build more base stations, but they failed to meet the minimum requirements. Additionally, operators did not offer 5G-supported smartphones to consumers.
ZDNet reported that 5G is needed to establish virtual and augmented reality in South Korea. Plus, the government noted that foreign operators in the U.S. and Japan are busy building their 28 GHz networks. The government now encourages new operators to enter the marketplace, spurring competition. According to ZDNet, the ministry will finalize the decision in December and force telcos to discontinue spectrum use.
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