SK Telecom, KT and LG Uplus are having trouble expanding their fifth-generation (5G) networks coverage and improving service quality, due to the delayed delivery of 5G equipment from Nokia in addition to the disappointing performance of the products, industry officials said Tuesday.
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The delay has caused trouble for the mobile carriers' plans to construct base stations with Nokia equipment in certain areas.
The amount of equipment mobile carriers have received from the Finnish company was a tenth of that from Samsung Electronics, according to officials.
They believe that Nokia failed to manufacture the 5G equipment and deliver it on time as the firm did not follow the schedule that Korea set in order to commercialize the world's first 5G network services this month. Instead it put priority on other markets such as Japan and Europe that are expected to commercialize their networks next year at the earliest.
"The problem is not just the delay in delivery," said an official from a mobile carrier, asking not to be named. "A bigger problem is that Nokia's equipment does not perform well."
Nokia's 5G equipment is believed to be technically vulnerable in terms of its capabilities in processing bulk data traffic and interlocking with 5G smartphones, compared to its competitors such as Samsung Electronics, Huawei and Ericsson.
"It will take a long time to verify the performance of Nokia's equipment," the official said. "Mobile carriers here expect Nokia's equipment to be stably supplied in the second half of the year at the earliest."
SK Telecom and KT selected Samsung Electronics, Nokia and Ericsson as their 5G equipment partners, while LG Uplus picked Samsung Electronics, Nokia, Ericsson and Huawei.
SK Telecom planned to use Nokia equipment in constructing 5G networks in the Gangwon and Jeolla provinces, while KT was to use it in the Chungcheong and Jeolla provinces, and LG Uplus in Gyeongsang Province.
But the problems involving the equipment have disrupted the plans of the telecom companies.
Among the mobile carriers, KT has already used Samsung Electronics equipment in building a 5G infrastructure in parts of the Chungcheong and Jeolla provinces.
SK Telecom and LG Uplus are also expected to alter their plans and use Samsung Electronics equipment instead of that from Nokia.
"Telecom companies are working on countermeasures amid a growing number of complaints from users since the 5G mobile networks service was launched," the official said.
Regarding the issue, an official from Nokia said his company is actively delivering its 5G equipment to operators in Korea and is confident that it will fulfill the 5G equipment needs of all customers.
"We have already started delivering 5G units to customers in Korea and are increasing our 5G production capabilities," he said. "As a leading global communications company, we are committed to delivering best in-class products to our partners and customers."