The Ministry of Science and ICT (Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon) is launching a full-scale effort to improve the system for calculating the price of spectrum re-allocation. The ministry announced that on August 13 it will inaugurate a research panel composed of experts in law, economics, business administration and technology, and hold a kickoff meeting.
 [코리안투데이] A view of the Ministry of Science and ICT building © 장형임 기자 |
Spectrum is a scarce resource managed by the state, and whether it should be re-allocated is reviewed once its licensing period ends. The ministry has, when necessary, pursued re-allocation in consideration of user protection and service continuity, and in the re-allocation process it has calculated and imposed an appropriate price reflecting the economic value of the spectrum in accordance with radio wave laws and regulations.
This system reform stems from the judgment that the environment surrounding spectrum has changed significantly. The ministry explained that, as the age of artificial intelligence (AI) arrives, spectrum has become a ‘neural network’ through which data flows and a core piece of infrastructure that determines national competitiveness. Accordingly, it noted, the importance of a re-allocation pricing framework that can encourage efficient use of spectrum and reasonably reflect its economic value is growing as well.
The research panel will be made up of experts in fields such as law, economics and business administration, and technology. The panel plans to comprehensively review the economic value of spectrum along with changes in the market and policy environment and international trends, and to draw up measures for improving the system.
Because the price of spectrum re-allocation is closely tied to the cost structure of telecommunications services, changes in how it is calculated could affect not only the burden on telecommunications operators but also the service fees and quality that users experience. Attention is focused on what changes this reform will bring to the efficient use of spectrum resources and to the public’s telecommunications service environment.
Practical work, including operation of the research panel, will be handled by the Spectrum Policy Division of the ministry’s Radio Policy Bureau.
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