Unused Frequency Band
KT will need to return the 800MHz frequency Band with 10MHz width to the government, though the company had no chance to use it. The company snatched the frequency bandwidth in an auction in 2011 at a price of 261 billion won (US$230.87 million).
According to the Ministry of Science, ICT, and Future Planning (MSIP) on May 11, the nation’s three mobile carriers are required to establish communication base stations for their frequency bands won in 2011, 2013 and 2016 at a certain percentage. For frequency bands received in 2011 and 2013, it is mandatory for the mobile carriers to build base stations at the percentage of 15 percent and 30 percent in the full third and fifth year.
Fore frequency bands assigned in 2016, the mobile carriers are obliged to establish new base stations at the rate of 10 percent to 65 percent compared to the number of existing base stations and to have an inspection four times every year, starting from this year to 2020.
To put it concretely, KT’s 800MHz and 900MHz frequency bands and LG U+’s 2.1 GHz frequency bands won in 2011, and SK Telecom’s 1.8 GHz and LG U+’s 2.6 GHz frequency bands won in 2013 are subject to the new policy as well as SK Telecom’s 2.6 GHz frequency bands, KT’s 1.8 GHz frequency band and LG U+’s 2.1 GHz frequency bands won in 2016.
The MSIP has begun checking whether mobile carriers perform their duties of base station establishment by year from last month. It will also decide on whether to cancel the allocation of frequency bands owned by mobile carriers, who fail to perform their duties, in October based on results.
The MSIP said it found out that KT failed to establish its new base stations for the 800MHz frequency bandwidth after reviewing the company’s current situation of base station construction. KT was awarded the 800MHz frequency band with 10MHz width (upper band of 819 to 824MHz and lower band of 864 to 869MHz) for 261 billion won (US$230.87 million in 2011. However, the company has had not used it due to its frequency band interference problems until now. In this regard, the MSIP said it can cancel the license of KT’s 800MHz frequency band.
An official from the MSIP said, “According to data submitted by KT, the company hasn’t constructed new base stations for its 800MHz frequency band. We will form an evaluation board in October or November after completing the investigation procedure and decide on the company’s sanctions by the end of this year, such as the cancellation of the license and shorter period of frequency band usage.”