2024.07.31. The Fair Economy — The government has revoked Stage X's status as a company eligible for 28GHz mobile communication frequency allocation, once again dashing hopes for the emergence of a fourth mobile carrier.
The Ministry of Science and ICT announced on the 31st that it had finalized its disposition to cancel Stage X's designation as a frequency allocation-eligible company, after completing the hearing procedure required under the Administrative Procedures Act, following prior notice given to Stage X.
On June 14, the Ministry of Science and ICT gave Stage X prior notice that it planned to cancel its designation as a frequency allocation-eligible company due to failure to fulfill necessary requirements for frequency allocation, among other reasons, and held a hearing to gather opinions on June 27.
Stage X went through the procedures for reviewing, confirming and correcting the hearing record as stipulated under the Administrative Procedures Act on July 17-18, and the hearing officer submitted the hearing record and a written opinion to the Ministry of Science and ICT on July 24.
The hearing officer submitted an opinion stating that Stage X, as a frequency allocation-eligible company, had failed to fulfill necessary requirements set forth under the Radio Waves Act and other relevant regulations, and had violated its written pledge, making the cancellation of its designation appropriate. After reviewing the hearing officer's opinion, the Ministry of Science and ICT finalized and notified the previously announced cancellation of Stage X's designation as a frequency allocation-eligible company on July 31, and also returned in full the 43.01 billion won in frequency allocation fees that Stage X had paid.
The Ministry of Science and ICT said, "Taking this case as an opportunity, we plan to examine whether there are any institutional shortcomings and organize and operate a research panel of experts from academia in economics, business, law and technology, as well as experts from related institutions, to comprehensively discuss ways to improve the frequency allocation system and the direction of future telecommunications policy."
Meanwhile, Stage X expressed deep regret over the Ministry of Science and ICT's disposition.
Stage X said, "The selection of a fourth mobile carrier has been recognized as a key achievement among the 120 state policy tasks, and the government has firmly expressed its determination to reform the entrenched telecommunications market." It added, "Believing in this policy commitment from the government, Stage X ambitiously took on the challenge of joining hands with leading domestic platform, cloud and financial institutions to lead change and innovation in the domestic mobile communications market."
Stage X went on to say, "The selection of a fourth mobile carrier, the first attempt made after the licensing system for common carriers was changed to a registration system, could have produced a different outcome from the past. This was a golden opportunity to finally bring change and innovation to the entrenched domestic mobile communications market on the eighth attempt, without financial capability — the main cause of failure in the seven previous attempts over the past 22 years — standing in the way. Nevertheless, it is extremely regrettable that the Ministry of Science and ICT made this unfortunate decision by forcibly interpreting the current system and procedures."
Stage X said, "We will not stop here. So that our efforts to date do not go to waste, we plan to continue our sincere push to lead change and innovation in the domestic mobile communications market." It added, "Company-level responses, including filing for an injunction against the Ministry of Science and ICT's disposition and seeking damages, will be pursued through in-depth discussions with related shareholders, including Stage Five."
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