Stage X will launch its 5G network using spectrum in the 28 GHz band
A local consortium dubbed Stage X has been selected as the new company to operate the spectrum in the 28 GHz band, effectively becoming the country’s fourth mobile carrier, local news agency Yonhap reported.
Stage X is a consortium integrated by Stage Five, a communications affiliate of tech giant Kakao Corp. and other unidentified companies, according to the report.
Current mobile operators in South Korea are SK Telecom, KT Corp. and LG Uplus.
The report noted that Stage X won the license to operate the 28 GHz band on the fifth day of the auction against Sejong Telecom Inc. and Mobile Consortium, after offering the highest bid of KRW 430.1 billion ($322.1 million), according to the Ministry of Science and ICT.
Stage X will be required to deploy a total of 6,000 base stations nationwide within the first three years and implement measures to address frequency congestion and interference, according to the report.
“We will work to become a new brand in the communications market and facilitate fresh and innovative changes in the market by boosting the 5G network service,” Stage X CEO Seo Sang-won reportedly said.
Stage X also said it plans to distribute cellphones that support the 5G 28 GHz spectrum through cooperation with Samsung Electronics, as well as global players like Apple and Google.
SK Telecom, LG Uplus and KT Corp. had secured frequencies in the 3.5 GHz and 28 GHz bands in 2018, under the condition that they each deploy 22,500 and 15,000 radio stations for each spectrum band. The government noted that telcos had fulfilled with the stipulated number of radio stations for the 3.5 GHz spectrum band.
Last year, the Korean government had effectively cancelled the spectrum licenses in the 28 GHz band that had been previously allocated to local operators for 5G deployments, due to the lack of investment and missed rollout requirements.
As a response to this insufficient investment, the South Korean government has taken steps to introduce a new operator to boost competition in the domestic mobile market.
The new operator will be the only service provider in the 28 GHz band during an initial three-year period in order to be able to secure its market position, according to previous report. Financial benefits, including tax benefits and loans, will also be provided to the new entrant.
