The Korean government has abandoned its policy to introduce a fourth telecommunications operator, which aimed to invigorate competition in the telecom market. The Ministry of Science and ICT stated that it was concluded during a briefing that it’s more suitable to proceed when there’s a market challenger proposing frequency allocation. Moving forward, the approach will be based on market demand rather than the government deciding the frequency allocation bands and business models.
The government had made eight attempts to introduce a new operator since the era of the Ministry of Science, ICT and Future Planning, with various incentives like three years of exclusive use of the 28GHz band and funding support of 400 billion won. However, due to issues such as capital default, the qualifications of StageX, which was selected as the new operator, were revoked.
The revised policy enables operators to propose their desired frequency bands for allocation within the available spectrum, instead of enforcing government-designated frequencies. There’s also a plan to improve current frequency allocation processes by ensuring operators meet the required financial and legal commitments.
Separately, the government identified mobile virtual network operators (MVNOs) as a means to introduce competition into the market dominated by three major carriers. It plans to cut wholesale data costs by up to 52%, encourage MVNOs to develop unique plans, and support the establishment of full MVNOs, which possess their own facilities and systems. There are also measures to ensure enhanced data offerings, introduce competitive pricing, and require MVNOs to have stronger financial and cybersecurity capabilities to protect users.
By fostering a competitive and varied landscape, the government aims to alleviate the financial burden of telecom expenses for consumers.