South Korea - Telecoms, Mobile and Broadband - Statistics and Analyses

South Korea - Telecoms, Mobile and Broadband - Statistics and Analyses

South Korea calls a halt to additional 5G spectrum auctions while usage balloons

With South Korea’s mobile population switching over to 5G at breakneck speed, the government has put a sudden halt on expanding the amount of spectrum available for 5G use. This follows complaints from the country’s two largest MNOs, SK Telecom and KT Corp, that the planned auction would unfairly benefit rival LG U+ because the additional spectrum (in the 3.4-3.42GHz range) was too close to that operator’s current 5G frequency holding. The objectors argued (successfully) that the frequency allocation would be cheaper for LG U+ to implement alongside its existing allotment, and thus give LG U+ more legroom to up its bid for the spectrum.

Pressure for more 5G-suitable spectrum is, nonetheless, going to continue to increase since the MNOs and MVNOs have been spectacularly successful in getting their customers to upgrade to 5G-capable handsets. Early adopters have followed along enthusiastically, using twice as much data on 5G networks in the first few months of 2022 compared to 4G, even though 4G connections are more than double that of 5G.

Commercial realities may soon set in for all of the operators, reinstating demands for the regulator to respond with additional spectrum options while providing a more level playing field.