KT to open essential facility… initial development of 5G to speed up
Kim Ji Young | kjy@ | 2018-04-11 11:18:51

The Korean government is expected to open up the necessary facilities of KT for early commercialization of 5G mobile communication (5G) and joint use. The government is planned to open up the necessary facilities such as KT`s pipeline, Jeonju, and fiber-optic cable, and activate joint construction between telecommunication companies to reduce investment costs by 400 billion to 1 trillion won over the next 10 years. However, there is still some controversy about the necessity of using essential facilities.

The Ministry of Science and Technology announced on April 10 that it will start early construction of the 5G network and commercialization of the world`s first, and announced plans to jointly build new facilities and improve the common utilization system of existing facilities to reduce overlapping investments of mobile carriers.

SK Telecom added SK Telecom to SK Telecom, a joint venture between KT, LG U Plus and SK Broadband. The target facilities also included radio equipment such as base stations and antenna cradles in addition to wired facilities such as existing ducts and manholes. The company also expanded its new building, which is the subject of the joint venture, from a current floor area of over 2000 square meters to a floor area of more than 1,000 square meters or three stories or more. As a result, it is expected that joint construction will be activated and investment costs will be reduced when constructing facilities such as inbound pipes connected to buildings.

Meanwhile, it decided to utilize the resources of municipalities and facility management agencies. When mobile carriers establish a communication network such as 5G, they have expanded the facilities that 17 local governments and facility management organizations must provide to install mobile communication repeaters and communication cables in street lights, traffic structures, and subways.

Mobile carriers also decided to open up facilities that are essential for building networks. It has made it possible to use facilities essential for network construction such as pipeline, electric pole, and optical cable to be used for mobile communication network construction. However, in the case of facilities with a construction period of less than three years, the existing regulations were excluded from the obligation. SK Telecom, SK Broadband, LG Uplus and SK Telecom, as well as existing KT, should be obliged to provide facilities for the first access point, such as a manhole from a communication room in a subscriber building to a telecommunication cable. The facility can be mutually provided in the bottleneck area.

The most sensitive issue, Yong-Dae, left the task as a challenge. The Korea Institute of Information and Communications Policy (KISDI), a national research institute, has decided to carry out the calculation work through the investigation of the construction cost of the region, the development of the pricing model, and the on-site inspection. However, the obligation for the construction of the 5G network was improved to reflect the difference in the construction environment in each region.

On the other hand, the Ministry of Information and Communication said it would be able to reduce the construction cost of KRW 400 billion per year by jointly constructing facilities that were individually constructed. According to the analysis, it will be possible to save up to KRW 1 trillion in investment cost from 4000 billion won in the next 10 years.

"This policy has relieved telecommunication investment uncertainty in the construction of the 5G network," said Young-min Young, a minister of the Ministry of Information and Communication. "It is meaningful that we opened the world`s first commercialization through early construction of 5G network." The government plans to announce the amendment plan on the same day and to proceed with the related procedures promptly and complete the revision in the first half of the year.

By Kim Ji Young kjy@

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