Non-mobile operators in Korea are now able to provide private 5G network services by establishing small 5G networks in limited areas such as land/buildings.

 

The Ministry of Science and ICT (MSIT) in Korea confirmed and announced the "Private 5G network frequency supply plan" as a follow-up to the "private 5G network policy plan" announced on January 26th. 

  

MSIT Press Release (Korean): Private 5G network frequency supply plan, 2021.06.29

 

The MSIT analyzed the 5G technology environment and global trends by organizing and operating a study group composed of experts in each field of economy, management, law and technology.

 

The frequency band and supply method suitable for the private 5G network, and the cost of using the frequency, were discussed in depth.

 

Based on this, MSIT established detailed policy measures after collecting opinions from industries such as demanding companies, manufacturers and mobile carriers.

 

1. Basic policy direction

 

In 5G mobile communication, a small number of operators build a nationwide large-scale network and provide services with large-scale investment. On the other hand, private 5G networks allow many operators to build small networks in limited areas such as land/buildings and provide services with small investments.

Reflecting the characteristics of the private 5G network compared to the existing mobile network, the supply method of private 5G frequency was reviewed to promote the revitalization of the B2B industry by supplying frequencies suitable for the private 5G network.

 

2. Private 5G frequency supplied

 

The MSIT simultaneously supplies the Sub-6GHz band along with the 28GHz band to activate the deployment of the private 5g network.

 

 

For the 28GHz band, the 600MHz width (28.9~29.5GHz) is divided into 12 50MHz-wide blocks, and the appropriate bandwidth will be supplied according to the request of the demanding company.

For the Sub-6GHz band, the 100MHz width (4.72∼4.82GHz) of the 4.7GHz band was secured in consideration of the industry demand, and the appropriate bandwidth is supplied according to the request of the demanding company by dividing it into 10 blocks with a 10MHz width.

 

 

3. Frequency supply method

 
Frequency allocation: When registering as a common carrier (facilities-based telecommunications business entity) and trying to build private 5G networks to provide private 5G services for demanding companies

 

The private 5g network frequency is used in a limited area of ​​land/building units, so the competitive demand for the spectrum is limited. Therefore, a price allocation method that imposes government-calculated consideration rather than an auction is applied.

※ The applicant for allocation must be the land/building owner, lessee, or a third party entrusted by the owner, and the lessee and entrusted third party require the consent of the owner

 

Frequency designation: When a company directly builds a private 5G network for its own business use

 

Companies that directly build private 5G networks designate frequencies through interference analysis according to the current wireless station establishment permit procedure.

 

4. Frequency usage fee

 

The fee is calculated in each individual case using the following fee formula:

 

Fee = basic amount x (5a1 + a2 +1) x duration x BW

 

1) basic amount: 4.7GHz band(100,000KRW / 10MHz), 28GHz band (50,000KRW / 50MHz)

2) area(a1, a2) in km²: metropolitan area(a1), other areas (a2)

3) duration: the duration of the allocation in years 

4) BW: the number of BW blocks. BW block (4.7GHz band: 10MHz, 28GHz band: 50MHz)

 

• 1$ is approximately 1,128 KRW.

 

5. Future plans

 

As a follow-up measure to the “Private 5G Network Frequency Supply Plan” announced this time, MSIT plans to revise the related system* by the end of September, and supply frequencies around the end of November after a one-month announcement of frequency allocation from October.

 

* Radio Equipment Technical Standard, Korea Frequency Distribution Table, Frequency Allocation Application Procedure and Method, etc.

 

An MSIT official said, “With the supply of private 5G network frequencies, the 5G network, the core infrastructure of the Digital New Deal, can be built and used in various industrial fields, thereby creating new added value through industry convergence and innovation, and furthermore, it will also contribute to the digital transformation of the economy and society.” He said, “We will make an active effort so that the private 5G network policy can be settled in the market through uninterrupted promotion of the private 5G network frequency supply plan.”

 

 

6. Opportunity

 

Finally, the private 5G spectrum supply plan has been confirmed in Korea, a 5G global leading country, and a private 5G network independent of mobile carriers is expected to start to be built in Korea's industrial vertical market as early as the end of this year.

 

5G vendors will be able to supply 5G solutions to industrial companies as well as MNOs in the Korean market. A new market has been opened to Korean 5G vendors Samsung, HFR and global vendors Nokia, Ericsson.