Corporate Interest in Local 5G Lacking
The South Korean government allowed corporations and institutions to build and operate private 5G networks last year to promote the use of 5G communications. However, few companies are showing interest in building local 5G networks.
At present, Naver Cloud is the only company that is using private 5G. The frequency, mainly for industrial applications, was allocated to Naver Cloud in December last year and the company is planning to operate its autonomous driving robots using a local 5G network. The robots will be used in the company’s HQ building for parcel delivery, beverage delivery, etc.
The government held a forum last month in order to promote private 5G. Kakao Enterprise, Samsung SDS, LG CNS were among the companies that attended the forum, but LG CNS is currently the only one of them willing to use local 5G.
“We are planning to apply for frequency allocation in the first quarter,” LG CNS said. Kakao Enterprise is discussing whether to do so, and Samsung SDS is not considering doing so. “The government is squeezing companies for more use of private 5G,” said an industry insider, adding, “The companies may not need local networks and yet are in no position to give a flat refusal.”