The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    BTS stars shine brighter as solo artists

  • 3

    North Korean escapees tell how nuclear tests ruined their health, hometown

  • 5

    30 people purchased 8,000 homes: data

  • 7

    USFK soldier, 2 women arrested for drug trafficking

  • 9

    Seventeen to drop 11th EP next month

  • 11

    Foreign ministry asks Japan to investigate case of Korean poisoned with bleach in Tokyo

  • 13

    Lamborghini driver suspect sent to prosecutors over parking dispute in Gangnam

  • 15

    Merck emphasizes digitalization in semiconductor market

  • 17

    Yanolja's aggressive expansion results in voluntary redundancy program

  • 19

    Global oil price surge stokes stagflation concerns

  • 2

    '30 Days' promises laughter, unlikely romance

  • 4

    ITZY's Lia takes break to put mental health first

  • 6

    Rowoon leaves SF9 to focus on acting career

  • 8

    Korea urged to adopt China exit strategy amid hegemonic war

  • 10

    INTERVIEWPutin uses summit with NK leader to stop Seoul from helping Ukraine: expert

  • 12

    Unfreezing of funds not likely to restore Korea-Iran ties

  • 14

    Seoul plans to build Jamsil Sports MICE Complex

  • 16

    Netflix's 'Song of the Bandits' blends western action with Korean period series

  • 18

    Invasion of 'smart' albums

  • 20

    All BTS members renew contracts with HYBE: agency

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Fri, September 22, 2023 | 00:59
Tech
Carriers in deadlock with gov't over frequency reallocation cost
Posted : 2020-08-03 16:48
Updated : 2020-08-03 18:29
Kim Hyun-bin
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
A woman using her smartphone passes by a 5G promotion sign set up in Gwanghwamun Square in Seoul. / Yonhap
A woman using her smartphone passes by a 5G promotion sign set up in Gwanghwamun Square in Seoul. / Yonhap

By Kim Hyun-bin



Major telecom companies and the Korean government are in a deadlock over the pricing of the frequency reallocation costs of the 3G and Long-Term-Evolution (LTE) networks.

The telecom companies will register for the bidding to reallocate the current frequency bandwidth in November as their 3G and LTE contracts are set to expire in June next year.

SK Telecom, KT and LG Uplus are seeking to continue utilizing the 3G and LTE 310 MHz frequency networks, which are also set to expire next year.

Under the current regulations, the government is expected to impose around 3.3 trillion won for the reallocation of the 310 MHz frequency bandwidth, which telecom companies' claim is way over market price and have been urging the government to be more transparent on the price-setting procedures and come out with a more practical plan.

Telecom companies have conducted their own study and claim a realistic price should be set around the mid-1 trillion won mark.

"Even if telecom companies newly allocate the 3G and LTE frequencies it will cost them around 2.7 trillion won but in case of reallocation of the frequencies currently in use, the cost should be drastically reduced to the mid-1 trillion won mark," an official familiar with the matter said. "The government needs to explain how it came up with the price and be more transparent in its procedures."

According to the three major telecom companies, the imposed frequency bandwidth fees have been increasing at a significant rate over the years.

The government imposed a fee of 4 percent of the telecom companies' total sales for frequency bandwidth in 2012, but that percentage has continued to rise over the years, coming out to 8.1 percent by 2019, nearly double the OECD average of 4.66 percent.

Korea's frequency bandwidth fees are among the highest of the 20 OECD nations researched, recent data shows.

Japan stood at 0.9 percent, the U.S. 2.7 percent and France at 3.8 percent. Only three countries — Italy, the U.K. and Hong Kong — were above Korea at 12.2 percent, 10 percent and 9.5 percent respectively.

The percentages have been increasing although total sales from telecom companies have been on a decline due to huge investments in 5G infrastructure and networks in recent years.

"The pricing does not make sense as telecom companies' operating profits have been affected by hefty investments in 5G," an official familiar with the matter said.

"The Korean government wanted to become the world's first 5G-commercialized country although telecom companies were not fully ready to launch their services. The hesitant move only gained strong backlash from customers for the lack of 5G connectivity."

SKT, KT and LG Uplus are the world's first to commercialize their 5G networks in April 2019.

If the government pushes to enforce their rate, telecom companies will be looking at other options to reduce the cost burden and in the worst-case scenario could be forced to partially halt 3G and LTE service in certain regions.

"Telecom companies overlap their networks, so for example when installing LTE coverage they make it so that the coverage overlaps with the previous network which is 3G, so users can have access to both tiers of coverage in the same location and the services have a backup in case one malfunctions. The same thing applies when setting up 5G with LTE and 3G networks," a telecom official said.

"Technically it is possible for telecom firms to halt 3G or LTE networks where the coverage overlaps to reduce their operating costs."

However, the decision to cut off an existing network will be a great risk to telecom companies as it could result in lack of connectivity for customers in certain regions and also will need prior approval from the government.

"The 3.3 trillion figure that is floating around as an estimated price for frequency bandwidth cost is not correct. We are under review to set the price and receiving opinions from telecom companies and other experts. There is no set price as of this point," an official at the Ministry of Science and ICT said.





Emailhyunbin@koreatimes.co.kr Article ListMore articles by this reporter
 
miguel
Top 10 Stories
130 people purchased 8,000 homes: data 30 people purchased 8,000 homes: data
2National Assembly passes motion to arrest DPK chiefNational Assembly passes motion to arrest DPK chief
3Civil servant mentor reappointed as labor ministry spokesmanCivil servant mentor reappointed as labor ministry spokesman
4Gender equality minister nominee in hot seat over remarks on abortion Gender equality minister nominee in hot seat over remarks on abortion
5Seoul invites ambassadors to introduce new halal foods in KoreaSeoul invites ambassadors to introduce new halal foods in Korea
6KG Mobility seeks breakthrough in Europe KG Mobility seeks breakthrough in Europe
7S. Korea condemns Russia, seeks to mend ties with ChinaS. Korea condemns Russia, seeks to mend ties with China
8Honey-dipped cookie to represent 'K-desserts' at global food expo in Germany Honey-dipped cookie to represent 'K-desserts' at global food expo in Germany
9COVID-19 deaths hit record high in Korea for 2022COVID-19 deaths hit record high in Korea for 2022
10Shilla hotel in Da Nang recognized at World Travel Awards Shilla hotel in Da Nang recognized at World Travel Awards
Top 5 Entertainment News
1Aespa's VR concert to hit theaters Oct. 25 Aespa's VR concert to hit theaters Oct. 25
2Gang Dong-won becomes exorcist con artist in 'Dr. Cheon and Lost Talisman' Gang Dong-won becomes exorcist con artist in 'Dr. Cheon and Lost Talisman'
3BTS defies K-pop's 'seven-year curse' BTS defies K-pop's 'seven-year curse'
4'30 Days' promises laughter, unlikely romance '30 Days' promises laughter, unlikely romance
5ITZY's Lia takes break to put mental health first ITZY's Lia takes break to put mental health first
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group