South Korea’s Ministry of Science and ICT (MSIT) is planning to offer spectrum in the 28GHz band to a new operator, with a view to promoting competition in the sector and enabling the introduction of differentiated 5G services.
According to Yonhap News Agency, the MSIT announced its plans for the frequencies after last year confirming it had cancelled the 28GHz licences previously issued to KT Corp and LG Uplus. As per the Ministry’s plans, initially only one new 28GHz spectrum award will be made, while the other block of reclaimed spectrum will be allocated three years after the award of the first new concession, so as to give the new entrant time to secure its position in the market. Meanwhile, the report notes that financial benefits, including tax cuts and fresh loans, will also be provided to the company that secures the first of these new 28GHz licences.
Speaking on its decision to have a three-year period before offering the second 28GHz concession, the MSIT was cited as saying: ‘The government is giving businesses an opportunity to enter the market, one in which they can take their time, considering that it might be hard for them to make new investments in the 28GHz band due to rising economic uncertainties at home and abroad.’
In terms of timings for the allocation of the new concession, the MSIT has said it will get the process underway in Q2 2023.