SK Telecom had been given the right to use the 28 GHz band in 2018 and was required to install a total of 15,000 units of network equipment by May this year

South Korea’s ICT ministry canceled a license owned by local carrier SK Telecom to offer 5G services via 28 GHz spectrum, citing a lack of investment.

SK Telecom had been given the right to use the 28 GHz band in 2018 and was required to install a total of 15,000 units of network equipment by May this year. However, SK Telecom had only installed only 1,650 units of 28 GHz equipment as of last week and had no plans for further installations, according to the Ministry of Science and ICT.

“The ministry has reviewed SK Telecom’s fulfillment and notified it of our decision to cancel its license,” the ministry said in a statement.

At the beginning of January, the Korean government effectively cancelled the spectrum licenses in the 28 GHz band that had been previously allocated to local operators for 5G deployments, due to the lack of investment and missed rollout requirements.

As a result, local operators KT and LG Uplus lost the right to use the 28 GHz frequencies they had won in a spectrum auction in 2018. Meanwhile, SK Telecom, had its use time of the 28 GHz spectrum reduced by six months. At that time, the government said that the telco will also lose the right to use the spectrum completely if it failed to deploy 15,000 radio stations that use the 28 GHz spectrum by the end of May 2023.

SK Telecom, LG Uplus and KT Corp. had secured frequencies in the 3.5 GHz and 28 GHz bands in 2018, under the condition that they each deploy 22,500 and 15,000 radio stations for each spectrum band. The government noted that telcos had fulfilled with the stipulated number of radio stations for the 3.5 GHz spectrum band.

The Korean government said it is currently seeking new operators for the 28 GHz band. According to local press report, new operators will be able to enjoy a smaller number of mandatory units, in addition to low-interest rate loans, tax credits and exclusive use of the frequency for three years. The ICT ministry plans to announce the new frequency allocation plan by June and new operators in the fourth quarter of 2023.

In June 2018, the ICT ministry completed an auction for 5G frequencies in which local carriers SK Telecom, KT and LG Uplus secured spectrum to launch 5G services in the Asian nation. SK Telecom and KT each won 100 megahertz in the 3.5 GHz band while LG Uplus had obtained a bloc of 80 megahertz of spectrum. In July 2022, LG Uplus secured an additional 20 megahertz of spectrum to use for 5G.