As 5G (fifth-generation mobile communications) standalone mode (SA) is introduced and the role of 4G (LTE) frequencies is expected to shrink, the Ministry of Science and ICT set the fee for this frequency reassignment at about 15% lower than the previous assignment fee. In addition, if a carrier builds more than a certain number of 5G indoor base stations, it will receive an additional reduction in the fee.
The Ministry of Science and ICT on the 10th finalized and announced detailed policy measures for mobile frequency reassignment with these elements. As the role of 4G (LTE) frequencies is expected to diminish with the introduction of 5G SA, the reassignment fee was set at 3.1 trillion won, about 15% lower than the reference price (3.6 trillion won), which was based on the previous assignment fee. The ministry said it set the reassignment fee by gathering expert opinions and comprehensively analyzing market data to prepare efficient frequency utilization plans for the 5G and 6G era.
The policy sets differentiated terms of use for the reassigned frequency bands in preparation for 6G commercialization and the age of artificial intelligence (AI). The 1.8 GHz band (20 MHz) and the 2.6 GHz band (100 MHz) are set at three years (through 2029) and will be reviewed in light of future 6G commercialization and securing wideband spectrum. The remaining bands are set at five years so that existing service users can receive stable service. Operators are given the option to use 3G frequencies for LTE or higher. For 4G (LTE) frequencies, reflecting the decline in subscriber numbers and traffic, operators can choose either the 2.1 GHz or 2.6 GHz band, and there is also an option to shorten the term of use within one year.
In particular, to improve 5G indoor quality, the reassignment fee will be reduced if carriers build more than a certain number of 5G indoor base stations. For example, if operators build more than 20,000 indoor base stations, the final reassignment fee is expected to be about 2.9 trillion won, which is likely to serve as an important investment incentive for improving indoor 5G quality.
The government also said it will push to mandate a transition to 5G SA by 2026. Until now, major domestic carriers have provided 5G service using non-standalone (NSA) mode, which uses both 5G and long-term evolution (LTE) frequencies. But it determined that in a low-latency, ultra-high-speed communications environment in the AI era, introducing standalone mode that uses only 5G frequencies is essential. Accordingly, 5G base stations built to date must be connected to 5G standalone core equipment by 2026.
There were also views calling for expanding the supply of 5G frequencies, but because demand from operators is uncertain, specific supply measures will be decided when demand becomes clear in the future. Expanding the supply of 5G frequencies is expected to spur competition in the mobile market and serve as an important element in preparing for next-generation technologies such as AI.
The Ministry of Science and ICT stressed that the policy is the result of careful consideration to meet both user protection and efficient use of spectrum. Oh Yong-su, director general of radio policy at the ministry, said, "Through this policy, domestic mobile networks will advance, contribute to Korea's leap to the AI big three, and improve service quality."