Technology

The Korean carrier protests against the increase in band prices


Reportedly, the Korean government wants to get at least 3.2 trillion won (2.88 billion USD) from carriers in the next year’s band reallocation. This fee is nearly double the proposed by the country’s carriers.

The bands of mobile networks for Korean telecom carriers are about to expire next year. At this time, the Korean Ministry of Science and Information Technology and the three major carriers of this country are having a fierce debate about the price of reallocating the band, according to Yonhap news agency.

The Korean Ministry of Science and Information Technology and the three major carriers of this country are having a fierce debate about the cost of reallocating frequency bands, with the accompanying conditions on the number of 5G base stations.

The Korean government said it wants to earn at least 3.2 trillion won (2.88 billion USD) from carriers, including SK Telecom, KT and LG Uplus, for 2G, 3G, 4G in next year reallocation. The fee is almost double the proposed by the carriers, at about 1.65 trillion won ($ 1.5 billion).

The above price actually comes with a condition that the carrier needs to have more than 150,000 5G base stations by the end of 2022. If not, the reallocation price could reach 3.9 trillion won (3 , 51 billion USD).

The Korean Ministry of Science and Information Technology explained: “After the launch of the 5G network, 4G LTE sales declined, resulting in less demand for 4G LTE bands. Therefore, there should be conditional pricing based on the size of 5G network installation “.

The Korean regulatory agency’s announcement caused a backlash. The government’s carriers said that the government’s price is too expensive and unrealistic, especially considering the current number of 5G base stations.

As of August, each operator has installed about 40,000 to 50,000 base stations 5G after 2 years. With similar installation rates, these carriers will only be able to complete about 100,000 base stations by 2022.

Even carriers are said to be considering a legal fight with the government’s proposed price. However, many analysts forecast, carriers will still be willing to spend heavily on frequency bands.

If it goes according to plan, the Korean government will close the band price by the end of this month, to begin receiving reallocation applications next month.

Hero (According to Yonhap News)

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