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Korean operators make pact to avoid undermining each other on 5G

SK Telecom is offering super fast broadband

SK Telecom, KT and LG Uplus have all agreed to launch 5G services at the same time to avoid the potentially blood-thirsty race in pursuit of the ‘first’ accolade.

According to The Korea Herald, the three telcos came to the agreement in a meeting with Yoo Young-min, the Minister in charge of the Ministry of Science and ICT, with the targeted launch date set as March 2019. While it is certainly a nice gesture, whether the telcos are able to stick to such a commitment remains to be seen.

“It is important for mobile carriers to avoid heated competition for the title of world‘s ‘first’ 5G service provider in order for Korea to become a nation that can commercialize the 5G service for the first time in the world,” said Yoo.

Although this situation should be viewed as the exception not the rule, this is a familiar sounding message. The development and standardization of 5G was painstakingly thorough partly with the ambition of all operators crossing the line together, preventing a fragmentation of the technology, and in turn, interoperability. Should the operators stick to their promise of March 2019 launch, the paranoia over competition could be removed, rushed decisions can be eradicated and deployment should be effective. Racing to the finish line can lead to mistakes, but a collaborative approach like this should put Korea in a very good position overall.

Last month the much anticipated Korean auction for 3.5 GHz and 28 GHz bands for 5G services was completed. For the 3.5 GHz band, SK Telecom spent roughly $1.1 billion for 100 MHz of spectrum, with KT paying a bit less, $870 million, for the same. LG Uplus bagged 80 MHz for $728 million. Honours were even for the 28 GHz band, with each collecting 800 MHz. The trio will be free to start using the bands from December, hopefully leaving enough time to thoroughly test enough use cases ahead of the March deadline.

Whether the loving trio can keep on good terms for another eight months remains to be seen, but the friendly route might just work out in everyone’s favour in the long run.

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