Telcos to Continue Investing in In-building Equipment
The author is an analyst of KB Securities. He can be reached at joonsop.analyst@kbfg.com. -- Ed.
MSIT announces results of first 5G quality survey
On August 5, the Ministry of Science & ICT (MSIT) announced the results of its survey on the public’s view on 5G services. The results contradicted discontent recently expressed (Digital Daily, August 5).
The survey results may have been distorted by the fact that the sample groups excluded users in areas without 5G coverage. Nonetheless, service quality seemed to be better than perceived.
Results of the MSIT survey:
(1) Faster data transmission (download/upload speed at 4.0x/1.5x LTE)
(2) Strong 5G connection rates in facilities with 5G coverage, ranging from 53% to 97% (97.36% in underground shopping centers; 67.93% in large-size stores, department stores and major hospitals; 78.21% on highways; and 53.57% in libraries)
(3) Low percentage of lost 5G connections (shift to LTE at avg. 6.19%)
The MSIT conducts telecom quality surveys twice a year to encourage capex. It also ranks Korea’s three telcos. The August 5 survey ranked SK Telecom on top, followed by KT and LG Uplus.
Telcos to continue investing in in-building equipment to ensure 5G quality
On April 8, the 5G+ Strategy Committee revealed its plans to expand 5G coverage by installing in-building equipment in some 2,000 facilities by year-end (e.g., subways, airports, department stores and small/mid-size buildings).
The MSIT reported that 1,272 out of some 5,000 facilities (selected by the Ministry of Environment) had in-building equipment installed (approx. 500 in December 2019, 700 in April 2020 and 1,200 in July 2020).
The three telcos have planned a combined KRW25tn in capex over the next three years, which raises hope for an increase in in-building equipment investment in 2H20.