Auc­tion for 5G fre­quen­cies starts to­day

The Korea Times - - BUSINESS - By Jun Ji-hye jjh@ko­re­atimes.co.kr

The na­tion’s three mo­bile car­ri­ers — SK Tele­com, KT and LG Uplus — will be­gin a bit­ter com­pe­ti­tion in­volv­ing tril­lions of won, to­day, as a na­tional fre­quency auc­tion for fifth-gen­er­a­tion (5G) net­works be­gins.

The auc­tion marks a ma­jor step for­ward for the goal of be­gin­ning the world’s first com­mer­cial 5G ser­vices in March 2019.

How suc­cess­fully the com­pa­nies com­pete for the fre­quen­cies will sig­nif­i­cantly af­fect their busi­nesses for the next ten years as they need to se­cure suf­fi­cient fre­quency bands to sup­ply sta­ble ser­vices based on 5G in­fra­struc­ture and new tech­nolo­gies such as vir­tual re­al­ity (VR) and aug­mented re­al­ity (AR).

The Min­istry of Science and ICT will auc­tion 280 mega­hertz of band­width in the 3.5-gi­ga­hertz band, and 2,400 mega­hertz of band­width in the 28-gi­ga­hertz band.

The min­istry has set the open­ing price for the auc­tion of 28 blocks in the 3.5-gi­ga­hertz spec­trum and 24 blocks in the 28-gi­ga­hertz spec­trum at 3.3 tril­lion won ($3 bil­lion).

The min­i­mum bid for the 3.5-gi­ga­hertz blocks is 2.65 tril­lion won with a pe­riod of use for 10 years, and for the 28-gi­ga­hertz blocks is 621.6 bil­lion won with a pe­riod of use for 5 years.

The auc­tion that will be­gin at 9 a.m. will be di­vided into two stages — the first stage will de­cide the num­ber of blocks as­signed to each com­pany, while the sec­ond will de­cide the lo­ca­tions of the blocks.

At­ten­tion is high on the fre­quency band of 3.5 gi­ga­hertz as it is con­sid­ered im­por­tant to build­ing a na­tion­wide net­work.

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