Stage X, the 4th mobile carrier, lacks capital… Growing concerns over “waste of taxpayers’ money”

Experts point out that “safety measures are in place”

When the allocation fee is paid in May, the business
More 28GHz frequency band base stations are needed
“The confirmed capital is only about 100 billion won.”
Structure that makes it difficult to keep promised investments
Costs are also needed to secure subscribers.

Estimated government support reaches 400 billion won
“Qualifications must be considered” at the National Assembly debate

There are concerns about Stage X, which will become Korea’s fourth mobile communications service provider next month. There is skepticism about whether StageX will be able to properly raise capital, invest in facilities, and attract customers.

Representative Byun Jae-il of the Democratic Party of Korea said at the ‘Qualifications and Requirements Debate for 28 GHz New Business Operators’ held on the 15th, “The financing plan is not realistic in a situation where Stage “In order to avoid this being a waste of taxpayers’ money, we need to carefully review the qualifications and requirements of new business owners now,” he emphasized.

StageX was allocated the 28GHz band frequency. If the corporation is established by May 4 and pays 10% of the frequency allocation fee (KRW 430.1 billion), it will become a mobile communication business operator and can begin building a network using the frequency. From this point on, Korea’s mobile communications industry will change from a three-company system to a four-company structure.

The 28 GHz frequency that Stage If the 3.5GHz frequency used by the three existing mobile carriers is a one-lane road, then 28GHz is comparable to an eight-lane road. This means that the wider the bandwidth, the more data can be transmitted and the speed is 3 to 4 times that of 3.5 GHz.

The problem is commercial. This is because the range of radio waves is short and the direct propagation is strong, which narrows the coverage area and requires base stations to be built more densely. This is why the government allotted 28 GHz frequency to the three mobile carriers and said each company needed to install 15,000 base stations. So the three mobile carriers won the bid for the 28 GHz frequency and then returned it.

In this recruitment of new operators in the 5G 28GHz frequency band, the government drastically reduced the obligation to install base stations to 6,000. Stage

Experts are voicing concerns about StageX’s plans. Professor Mo Jeong-hoon of Yonsei University, who attended the debate on this day, said, “If Stage “It will be done,” he criticized. Jeong Hoon, a professor at Cheongju University, said, “To secure subscribers, you have to bring them in from other companies, which costs a lot more money. However, StageX’s confirmed capital is only 100 billion won,” he pointed out.

The minimum investment for three years presented by StageX is a total of 612.8 billion won, including 430.1 billion won for frequency allocation and 182.7 billion won for mandatory communication infrastructure construction costs. In the end, in order for Stage

The amount of support for Stage It is also important to consider that the wireless business is currently entering a period of stagnant growth as the proportion of 5G subscribers exceeds 60%.

At the discussion, Han Seok-hyeon, Seoul YMCA citizen broadcasting director, pointed out, “Stage

Reporter Kim Geon-ho [email protected]

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