SK, KT, LG U+ 5G spectrum being repossessed

KT and LG U+ are losing some of their 5G spectrum after failing to fully utilize it, while SK Telecom's license period for the same 5G spectrum will be reduced by six months from its original December 2023 end date.

Choi Woo-hyeok, head of spectrum policy at the Ministry of Science and ICT, speaks during a press conference held at the government complex in central Seoul, Friday. The ICT Ministry finalized its decision to retrieve the 28-gigahertz spectrum licenses from KT and LG U+. [YONHAP]

KT and LG U+ are losing some of their 5G spectrum after failing to fully utilize it, while SK Telecom's license period for the same 5G spectrum will be reduced by six months from its original November 2023 end date.

The ruling by the ICT Ministry is effective Friday.

The spectrum is being repossessed because the companies failed to meet base station roll-out benchmarks set out in the licensing agreement.

The ICT made the decision on Nov. 18 and held a hearing on the issue on early December.

Spectrum being taken back is at 28 gigahertz, which provides faster downloads than the 3.5-gigahertz spectrum, the mid-band spectrum allocated for 5G services. The companies were required to install 15,000 base stations each by 2021, but met only about 10 to 12 percent of the target number.

“It is regretful that such an outcome was reached despite the government’s various attempts” to encourage the high-band spectrum utilization, said Choi Woo-hyeok, head of spectrum policy at the Ministry of Science and ICT.

According to the ministry, the three telecom companies expressed regret for failing to meet the obligations during the hearing, yet did not object to the government’s decision.

For the companies, high costs for the base stations and low demand for the ultra-fast 5G combined to make the investment not commercially viable.

The ministry made an exception for a project to install high-band 5G WiFi modules in subway stations in Seoul. KT and LG U+ will be allowed to use the 28-gigahertz band for the project through November next year.

LG U+ is currently running a pilot project using the 28-gigahertz spectrum, and the ministry approved the company to use the spectrum only for the project.

The government hopes to auction off one of the licenses retrieved from KT and LG U+. Support measures and incentives to bring in a new player will be released in January next year.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]