ICT minister hints at delay of 5G spectrum license auction

By Lee Kyung-min

An auction for 5G spectrum licenses in the 20MHz bandwidth range scheduled for next month may not proceed as planned, the science minister indicated Thursday, further extending the yearlong tussle among the country's three wireless telecommunication operators ― SK Telecom, KT and LG Uplus.

This comes amid a fierce three-way competition over service quality including speed and connections, determined largely by both the 5G spectrums bought by the telecommunications operators and how close their newly acquired 5G spectrums are to their existing bandwidths.

SK Telecom, the market leader, and KT say pushing ahead with the original schedule will only benefit LG Uplus, the smallest market player. LG Uplus will be able to provide the highest-quality 5G services to its users almost immediately after purchasing its new 5G spectrum, due to reduced costs needed to install relevant equipment, unlike the top two market players whose services will not be available until two years later due to time-consuming hefty investments including the development of new devices with carrier aggregation (CA) technology.

“It remains unclear whether the auction will be held next month,” Science and ICT Minister Lim Hye-sook said during a press conference at the Sejong Government Complex.

She said the delay resulted from a lack of consensus among stakeholders, and a request by SK Telecom a day earlier on the need to outline specifics of the auction that all three participants can agree on.

“Consumer benefit promotion and fair competition among three telecom companies are two priorities of the ministry. I will meet with CEOs of the three firms next month for more constructive and productive discussions,” she said.

The minister expressed a favorable view on creating a deputy prime minister position to oversee the science industry, as has been suggested by both ruling and opposition presidential contenders.

“Closer cooperation among ministries and government agencies will help spur the growth of the science and high-tech industries, backed by establishing a space exploration organization. Our ministry will be able to spearhead key initiatives in a more powerful and efficient manner,” she said.

The minister said she will continue to nurture talented young people and foster essential strategic technologies for the remainder of her term.