President Lee Jae-myung presented the commercialization date for 6G (6th generation mobile communication) as 2030. The market voices that measures are needed to induce investments from telecommunications companies during the 6G policy establishment process. SK Telecom, KT, and LG Uplus are lukewarm not only about 6G but even about 5.5G, which is a bridge technology to transition to 6G. 5.5G has a speed that is 10 times faster than 5G.
According to the telecommunications industry on the 5th, the Ministry of Science and ICT recently opened the door for foreign corporations to provide low-orbit satellite communication services within the country. Low-orbit satellite communication is a technology gaining attention for the future implementation of 6G. 6G is suitable for processing vast amounts of data and is regarded as a core infrastructure for advanced industries such as artificial intelligence (AI), autonomous driving, and robotics.
◇ '6G foundational technology' low-orbit satellite communication service as early as July
According to the Ministry of Science and ICT, the cross-border supply agreement for low-orbit satellite communication services applied for by Starlink Korea, Hanwha System, and KT SAT was approved on the 30th of last month, and subsequent procedures are underway. Starlink Korea plans to provide low-orbit satellite communication services in the country through SpaceX, while Hanwha System and KT SAT are set to provide services through Eutelsat OneWeb.
Under the Telecommunications Business Act, foreign operators such as SpaceX (U.S.) and OneWeb (U.K.) cannot provide communication services directly in the country. To provide services, domestic telecommunications operators must sign a cross-border supply agreement with a foreign operator and obtain approval from the Minister.
The only remaining procedure before these corporations launch services domestically is 'suitability assessment for user antennas (terminals).' Since SpaceX already provides services in about 120 countries and OneWeb in about 40 countries, they are expected to pass without any issues. The industry analyzes that Starlink and OneWeb's low-orbit satellite communication services may be available as early as next month.
Starlink and OneWeb plan to focus on business-to-business (B2B) or business-to-government (B2G) projects rather than the general consumer (B2C) market in the initial stages of service. By highlighting the strengths of non-terrestrial networks (NTN) that can provide services without geographical restrictions, they aim to prioritize entry into markets such as maritime, aviation, plants, public services, and disaster safety. SK Telink, the official reseller of Starlink Korea, noted that they plan to gradually expand their product lineup to meet the special demands of various industries, including dedicated maritime and aviation packages, plans for public institutions, and combinations of fixed and mobile terminals.
◇ Korea launches 2 6G satellites while Starlink prepares 40,000
The global mobile communication standardization body, 3GPP, plans to establish Release 21, which defines 6G technology standards in 2028, and it is highly likely that the low-orbit satellite communication method adopted by companies like SpaceX and OneWeb will be included.
Currently, 6G discussions indicate that it should have a speed of 1 Tbps, which is 50 times faster than the maximum 20 Gbps speed of 5G, along with a response speed 10 times faster than 5G and the capability to connect 10 times more devices. Additional technologies, such as low-orbit satellites, are essential to achieve these '6G conditions.' Low-orbit satellites located between 300 km and 1,500 km from earth can offer high-speed communication with relatively low latency.
Telecommunications industry officials said, 'It is not necessary for 6G services to be provided only through low-orbit satellites,' but emphasized, 'It is considered the only technology that can effectively meet the conditions for achieving 6G as it can provide communication services to maritime and aerial areas.'
This is why the Ministry of Science and ICT's current project to develop low-orbit communication satellites is being conducted in line with '6G standard bases.' This project passed a preliminary feasibility study last May, with a total project cost of 319.9 billion won (300.3 billion won in government funding), aiming to develop low-orbit communication satellites over six years starting this year, with the goal of establishing a 6G pilot network by 2030. It aims to launch 2 low-orbit communication satellites based on 6G standards and equip ground stations and terminals.
Shin Dong-joo, Senior Expert at the Democratic Party of Korea's Science, Information and Communications Committee, explained that 'the goal is to lead the communication standards created by 3GPP or the International Telecommunication Union (ITU) to ensure that the frequencies and performances regarded by our country are reflected as standards,' adding that 'it also aims to prepare thoroughly for satellite communication technologies that our country has not yet implemented.'
The issue is that when Korea launches the 2 6G satellites in 2030, Starlink, which has entered the domestic market, will possess 40,000 satellites. Starlink is currently providing services based on about 7,000 satellites. After starting its first launch in May 2019, Starlink reportedly increased its satellites at an average rate of 3 per day and claims it will achieve speeds of 2 Gbps soon. OneWeb, which provides services with over 640 satellites, also aims to increase its satellites to 6,372 by 2030.
◇ Half-baked 5G cannot compete with 6G
Korea has the distinction of being the first in the world to commercialize 5G in 2019. However, the three telecommunications companies have stated that they 'lack profitability' and returned the 28 gigahertz (GHz) frequency band, resulting in minimal operational experience in millimeter-wave (Millimeter wave) services, which are core to 5.5G and 6G.
When the Moon Jae-in government allocated the 28 GHz frequency band to SK Telecom, KT, and LG Uplus in 2018, it mandated the installation of 15,000 base stations for each. Based on this, the three companies promised consumers that they would provide speeds '20 times faster than LTE (4G)' when initially commercializing 5G. However, as of the end of last year, the average speed of 5G was 1,025.5 Mbps, which is only 10 times the speed of LTE (150 Mbps). The nationwide network is built around the mid-band of 5G, which is 3.5 GHz. Essentially, they introduced a half-baked 5G.
Contrary to their goals, the three telecommunications companies installed only about 5,000 base stations for the 28 GHz. The Ministry of Science and ICT canceled the frequency allocation for KT and LG Uplus in December 2022, and SK Telecom also returned its usage rights in May 2023. The 28 GHz 5G subway Wi-Fi service, which had seen active base station installations, was also suspended in November 2023.
In China, where the implementation of 5G was six months delayed compared to Korea, 5.5G was partially commercialized in some areas last year. It offers communication services that are about 5 to 10 times faster than Korean 5G. With the 6 GHz band as the primary focus, 5.5G was first commercialized, and a national-level development project is underway to promote the commercialization of 6G.
◇ “Government needs to discover demand sources to invigorate investments”
Kim Jeong-chan, a researcher at Korea Investment Securities, noted that while '5G Advanced (5.5G) is an interim technology with no clear boundaries like 5G and 6G, there are significant differences in the form of networks and equipment for implementation.' However, he mentioned that 'despite the progress in technology, domestic telecommunications companies are not actively adopting 5G Advanced due to low perceived utility for B2C and limited applications for B2B, resulting in inadequate value relative to investment.'
He continued, 'For telecommunications companies to secure competitiveness in AI B2B that are becoming a focus, technologies based on 5G Advanced are essential,' emphasizing that 'from a short-term revenue perspective, they may have low utility, but it is a necessary direction to pursue global standards and secure medium- and long-term technological competitiveness.'
A university professor, who requested anonymity, evaluated that 'while domestic telecommunications companies are conducting 6G research in line with government strategies, they are not producing distinct outcomes,' adding that 'they are only at the level of issuing white papers and presenting blueprints.'
Domestic telecommunications companies are currently trending toward reducing capital expenditures. Last year, SK Telecom's capital expenditure (CAPEX) was 1.544 trillion won, a 11.4% decrease from the same period the previous year. During this period, KT also reduced its expenditure by 4.6%, spending 2.2999 trillion won. LG Uplus similarly recorded a 24% decrease to 1.9 trillion won.
Yun Seok-bin, a special professor at the Graduate School of AI and Software at Sogang University, stated, 'While both 5.5G and 6G are indeed gaining attention as critical infrastructure due to the increasing demand for AI, domestic telecommunications companies ultimately need to see market demand before investing.' He emphasized, 'The government must first create an environment where trial services can take place to allow enterprises to experience 'technological utility,' which in turn will unearth demand and invigorate investments.'