Not for 5G but for 4G
Industry experts point out that this could hinder their investment in new technology. According to them, the government’s intention is to revitalize the domestic telecom equipment market by means of the LTE frequency auction but this might affect the competitiveness of South Korean telecom operators in the era of 5G.
The South Korean government is asking local mobile carriers to spend more on R&D in order to start the world’s first pilot 5G service in 2018. At the same time, the government is urging them to build excessive LTE networks via the LTE frequency auction scheduled for next month.
Industry experts point out that this could hinder their investment in new technology. According to them, the government’s intention is to revitalize the domestic telecom equipment market by means of the LTE frequency auction but this might affect the competitiveness of South Korean telecom operators in the era of 5G.
According to the Ministry of Science, ICT & Future Planning, operators assigned with frequencies at the auction are required to build as many as 68,900 base stations by 2019, which are equivalent to 65% of the base stations currently in operation nationwide, with their base stations already built across the country by means of other LTE frequency bands. In addition, they are required to make a large-scale investment for the commercial use of 5G in 2020 after the trial 5G service in 2018.
The South Korean government’s stance with regard to this point is that LTE and 5G have to be used at the same time even after the advent of the era of 5G. “Global 5G standards will not be available until 2020 and 5G is expected to maintain its compatibility with LTE, and thus more investment in LTE does make sense,” the ministry explained, adding, “Nowadays, with mobile carriers’ investment in networks on the decrease, it is preferable that they improve their service quality and assist in the business of smaller firms in the industry by stepping up their investment.”