South Korea is expected to auction spectrum in the 700MHz band in the second half of this year, according to the Korea Herald, which cites comments made by the chairman of the Korea Communications Commission (KCC). With it having been suggested that the state will look to raise funds via the sale of frequencies in the aforementioned band to both mobile network operators (MNOs) and terrestrial broadcasters, the KCC chairman Choi Sung-joon was quoted as saying:

“The KCC has to prepare an exit strategy as tension is unexpectedly high between terrestrial broadcasters and mobile carriers over the use of the 700MHz frequency band … In the United States, for example, money that was saved from selling licenses is reinvested to create more content for broadcasting companies.”

It has been claimed that the KCC believes auctioning off the spectrum would help improve broadband services and ensure that mobile operators are well positioned for the eventual step up to 5G technologies. However, management at South Korea’s main broadcasters – KBS, MBC and SBS – are said to be lobbying lawmakers to pass a bill that gives them exclusive rights to the 700MHz band; the nation’s cellcos are, unsurprisingly, opposed to such plans. Commenting on the situation, the KCC executive noted:

“Telecom companies need to use more frequencies to respond to booming data traffic … Securing more high-speed frequencies also means a better service from broadcasters with ultra-high-definition (UHD) viewing quality. This is why the winner-takes-all principle shouldn’t be implemented.”

Meanwhile, although South Korea’s MNOs have said they are ready for an auction, there are concerns about the financial pressures of such a sale, with an unnamed KT official reported as saying: ‘The auction will truly burden us … But we have no option but to participate so we can have more frequencies to fuel our fifth-generation wireless service.’ For its part, an official for SK Telecom, the country’s largest cellco by subscribers, noted:

“The 5G structure must support multiple vertical industries and promote confidence in our corporate future, which is the key for investment … That will lower entry barriers for third-party developers as networks become more software-oriented.”