“Auction without bomb”…Government to decrease assignment for 5G frequency
Jung Ye Lin | yeslin@ | 2018-03-08 10:47:21
The cost of 5G mobile communication (5G) frequency bandwidth allocation is expected to be lower than that of LTE (4th generation mobile communication) frequency auction. In the meeting of the 4th Industrial Revolution Special Committee of the National Assembly on March 6, Yu Young-min, Minister of Information and Communication, said that the 5G frequency allocation price would be lowered. Therefore, to reduce the investment burden on the carriers and the government`s intention to block telecom price hikes.
According to the Ministry of Information and Telecommunication (MIC) on March 7, the cost of the carrier`s cost per bandwidth is lower than in the LTE frequency auction in the 5G frequency auction to be held in June. As a result, it is expected that the minimum competitive price estimated by the Ministry of Information and Communication will start to decrease along with the start of the auction.
A representative of the Ministry of Information and Telecommunication said, "The frequency of LTE is high and the price of 20GHz auction is up to KRW 1.995 trillion, but if the same applies to 5G frequency, the price will be unreasonably high. As a standard, we will lower the amount even more than that. "
Meanwhile, the Ministry of Information and Communication plans to supply as wide as 5G frequency width, which is characterized by high speed and high capacity. An official from the Ministry of Information and Communication said, "In order to smoothly commercialize 5G, we will give operators the maximum value they need." The Ministry of Information and Communication will supply a maximum of 300MHz for the 3.5GHz band of 5G frequency and 3GHz for the 28GHz band.
However, the total auction price of 5G seems to be higher than LTE. Due to the nature of 5G, the required bandwidth unit will rise from 10 ~ 20 ㎒ to several hundred ㎒ in LTE. The Ministry of Information and Communication said, "There is some misinterpretation that misinterprets the fact that the absolute amount is cheaper, but it is misinterpreted." Even if we supply a broader amount of money cheaply, the width itself is so wide that multiplying the amount of bandwidth by the width will increase the absolute amount itself No, "he said.
The Ministry of Information and Communication is currently under revision to lower the frequency allocation per unit bandwidth. In January, the Ministry of Information and Communication (MIC) announced three amendments, including the Enforcement Decree of the Radio Wave Act and the Notice on the Calculation and Imposition of Frequency Allocation Charges, and collects opinions from stakeholders. According to the amendment notice, a new coefficient is introduced at a frequency above 3 GHz band to be used as the 5G frequency in the formula for calculating the `expected sales basis payment` which determines the frequency allocation price. We also added a new formula to calculate the unit price per ㎒. When calculating the allocation cost, you can select and apply the current formula and the new formula.
The intention of the Ministry of Information and Communication will lower the price per ㎒. LTE frequency auctions were made in 2011, 2013, and 2016, all of which were won by auction. In the latest case, SK Telecom`s bid for the LTE 2.6GHz band D band of 40MHz was awarded at W950bn. ㎒ is more than 23 billion won. In addition, up to now, most of the allotment costs have exceeded 10 billion won per ㎒. As the government says it will lower the cost per allocation, the industry predicts that the price per ㎒ will be lower than LTE.
Meanwhile, the industry is still not able to predict the amount. One telecommunication agency official said, "In the past, there was an existing case, and it was possible to predict the price with a few bands and a few blocks, but this time, the band is 3.5GHz and 28GHz, I think I need to open it."
By Jung Ye Lin yeslin@
[ copyright ⓒ The Digitaltimes ]
According to the Ministry of Information and Telecommunication (MIC) on March 7, the cost of the carrier`s cost per bandwidth is lower than in the LTE frequency auction in the 5G frequency auction to be held in June. As a result, it is expected that the minimum competitive price estimated by the Ministry of Information and Communication will start to decrease along with the start of the auction.
A representative of the Ministry of Information and Telecommunication said, "The frequency of LTE is high and the price of 20GHz auction is up to KRW 1.995 trillion, but if the same applies to 5G frequency, the price will be unreasonably high. As a standard, we will lower the amount even more than that. "
Meanwhile, the Ministry of Information and Communication plans to supply as wide as 5G frequency width, which is characterized by high speed and high capacity. An official from the Ministry of Information and Communication said, "In order to smoothly commercialize 5G, we will give operators the maximum value they need." The Ministry of Information and Communication will supply a maximum of 300MHz for the 3.5GHz band of 5G frequency and 3GHz for the 28GHz band.
However, the total auction price of 5G seems to be higher than LTE. Due to the nature of 5G, the required bandwidth unit will rise from 10 ~ 20 ㎒ to several hundred ㎒ in LTE. The Ministry of Information and Communication said, "There is some misinterpretation that misinterprets the fact that the absolute amount is cheaper, but it is misinterpreted." Even if we supply a broader amount of money cheaply, the width itself is so wide that multiplying the amount of bandwidth by the width will increase the absolute amount itself No, "he said.
The Ministry of Information and Communication is currently under revision to lower the frequency allocation per unit bandwidth. In January, the Ministry of Information and Communication (MIC) announced three amendments, including the Enforcement Decree of the Radio Wave Act and the Notice on the Calculation and Imposition of Frequency Allocation Charges, and collects opinions from stakeholders. According to the amendment notice, a new coefficient is introduced at a frequency above 3 GHz band to be used as the 5G frequency in the formula for calculating the `expected sales basis payment` which determines the frequency allocation price. We also added a new formula to calculate the unit price per ㎒. When calculating the allocation cost, you can select and apply the current formula and the new formula.
The intention of the Ministry of Information and Communication will lower the price per ㎒. LTE frequency auctions were made in 2011, 2013, and 2016, all of which were won by auction. In the latest case, SK Telecom`s bid for the LTE 2.6GHz band D band of 40MHz was awarded at W950bn. ㎒ is more than 23 billion won. In addition, up to now, most of the allotment costs have exceeded 10 billion won per ㎒. As the government says it will lower the cost per allocation, the industry predicts that the price per ㎒ will be lower than LTE.
Meanwhile, the industry is still not able to predict the amount. One telecommunication agency official said, "In the past, there was an existing case, and it was possible to predict the price with a few bands and a few blocks, but this time, the band is 3.5GHz and 28GHz, I think I need to open it."
By Jung Ye Lin yeslin@