Experts are calling for a reform of the frequency allocation fee system to link it with telecom companies' investments, coverage, and quality performance, while also considering revenue and capital expenditures.
On August 25, Hyun-seop Byun, a professor at Hallym University, made this statement at a comprehensive academic conference on 'Radio Policy Directions Following the Spread of Artificial Intelligence (AI)' held at Korea Aerospace University.
Byun noted, "If frequency allocation fees are set too low, it can lead to excess demand and inefficient use. Conversely, if they are set too high, it can create barriers to entry, weaken competition, and result in higher consumer prices, ultimately reducing social welfare."
He emphasized the importance of determining frequency allocation fees at a fair value. He suggested that in the future, these fees should be linked to operators' investments, coverage, and quality performance, and that the system should be improved to enhance the discovery of fair value through auctions and secondary markets.
Byun explained that frequency allocation fees serve as a benchmark for recognizing the economic value of essential production factors needed for operators to realize business opportunities. This recognition can encourage operators to strengthen their internal capabilities and pursue technological innovation to generate profits exceeding the allocation fees.
On the same day, Yeon-gap Yeo, a researcher at the Electronics and Telecommunications Research Institute (ETRI), presented international examples related to differentiated pricing for reallocated frequencies. Yeo explained that while differentiated pricing may apply during the initial allocation process, many cases apply the same price during reallocation to eliminate price discrimination.
He also emphasized that the fundamental principle for determining reallocation fees is to reassess them based on current value rather than simply inheriting past prices.
Jihwan Kim, a group leader at the Korea Information Society Development Institute (KISDI), compared the trends in AI infrastructure, mobile communication networks, and frequency policies in the United States, China, and Europe.
Jihun Kim, a senior expert at law firm Sejong, stated, "It is crucial to clearly understand the legal meaning of 'economic value of frequencies' as defined in the Radio Act and to reasonably determine frequency allocation fees. This is necessary to solidify the foundation for frequency policies that will drive the AI and 6G era."
Meanwhile, the Korean Association of Radio Policy is an academic organization that conducts research on radio resources and communication policies, including 5G and 6G mobile communications, AI infrastructure, and satellite communications.
* This article has been translated by AI.
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