SK pays $919 million for phone frequency band

People in the lobby of SK Telecom’s headquarters in Euljiro, central Seoul, yesterday after the company won the 1.8-GHz mobile spectrum auction. [YONHAP]

The first-ever auction for frequency bands for mobile phone services in Korea came to a close yesterday after cutthroat competition among telecom firms, 83 rounds of bidding - and handwringing from market watchers and pundits about the amount of money spent.

SK Telecom, the country’s No.1 mobile carrier, came out the winner after securing the 1.8-gigahertz (GHz) band, the Korea Communications Commission announced. Both SK Telecom and KT, the runners-up in the market, wanted that specific band.

Why?

The 1.8-GHz band is thought to be the most suitable for fourth-generation (4G) mobile communications technology. Many mobile carriers in Europe, the United States and Asia have chosen it for their 4G mobile telecommunication services. It can process data much faster than the 3G service, and thus carry out more tasks such as playing full high-definition content.

Both of the telecom giants were determined to clinch the band since the auction began on Aug. 17. As a result, the auction dragged on for nine days and 83 rounds, and the bidding price soared to 995 billion won ($919 million), more than double the minimum bidding price of 445.5 billion won set by the KCC.

The KCC, which ran the auction, did not place a limit on how many rounds could take place, nor how high the bidding price could go.

Finally KT backed off. When the auction resumed yesterday morning, KT bid for the 800-megahertz (MHz) band, and as the sole bidder, the company got it for the minimum bid price of 261 billion won.

“We withdrew from further bidding for the 1.8-GHz band in light of the social controversy about the overheated competition and national loss,” KT CEO Lee Suk-chae told reporters. “I thought if I use more than one trillion won on spectrum, KT won’t be able to do more important things.”

Market analysts didn’t expect the price to break the 1 trillion won mark. Still, KT’s surrender surprised some, as both companies had been so determined to get the frequency.

Put simply, such spectrum bands are the “roads” that enable voice calls, text messages and data to travel.

Securing vital spectrum slots are a must to meet surging data demand from smartphone and tablet PC users and to develop future wireless network technologies.

But some analysts think by winning the auction, SK Telecom has more to worry than smile about.

Pundits have been raising the possibility of a “winner’s curse,” citing cases in Europe, which held many spectrum auctions between 2000 and 2001 that ended in misery as companies paid more than they could recover with new services.

“We find it regrettable how this auction caused overheated competition to the point it worried many people,” an SK Telecom official said. “We will use the secured band for Long Term Evolution [a type of 4G technology].”

KCC brushed off concerns of a winner’s curse.

“Given the expected uptick in market share once telecom companies secure certain spectrum bands, we don’t think there will be such a curse,” Oh Nam-seok, an official at the KCC’s electronic signals department, said.

He also denied speculation that the financial burden on telecom companies will drive up telecom bills for households, saying, “The fees are decided by factors like what’s going on in the market and with competitors. It’s very unlikely there will be a price hike.”

The only party fully happy after the auction was LG U+.

On day one of the auction, LG U+ won the “golden” spectrum of 2.1 GHz that is widely used for smartphone services worldwide for a minimum price of 445.5 billion won, as the KCC had banned SK Telecom and KT from bidding for it.

SK Telecom and KT already own licenses for the band, while LG U+ has been the only player in the market without a license for the band.

By Kim Hyung-eun [hkim@joongang.co.kr]

한글 관련 기사 [중앙일보]

‘황금주파수’ 82R 끝에 SKT 품으로

KT 포기…9950억에 낙찰

SK텔레콤이 4세대(4G) 이동통신의 ‘황금 주파수’로 불리는 1.8기가헤르츠(㎓) 대역(폭 20㎒)을 차지했다. 이 대역대의 주파수는 또 다른 경매대상 주파수였던 800메가헤르츠(㎒)의 두 배쯤 되는 대역폭인 데다, 유럽 20개 업체와 미국·아시아 5개 업체 등 세계적으로 가장 많은 통신사들이 이미 채택하고 있어 업계의 관심이 뜨거웠다.

　주파수 경매를 주관한 방송통신위원회는 29일 “KT가 1.8㎓ 대역에 입찰하지 않고 800㎒ 대역에 입찰함에 따라 이번 경매가 끝났다”고 밝혔다. KT가 입찰을 포기함에 따라 1.8㎓ 대역은 직전 최고 입찰가인 9950억원을 써낸 SK텔레콤에 돌아갔다. KT는 대신 800㎒ 대역을 최저 경쟁가격인 2610억원에 낙찰받았다.

　이로써 통신시장에서 미래경쟁력을 좌우할 4세대 이동통신용 주파수 확보전 경매는 시작된 지 9일 만에, 경매 횟수로는 83회차 만에 막을 내렸다. 업계 3위인 LG유플러스는 방통위의 ‘업계 간 경쟁 활성화’ 배려 덕에 일찌감치 2.1㎓ 대역(20㎒폭)을 4455억원에 가져갔다.

　1.8㎓ 대역을 SK텔레콤이 가져가긴 했지만 최종 낙찰가는 1조원에 육박했다. 경매 시작가인 4450억원에서 두 배 이상 오른 액수다. 이석채 KT 회장은 “주파수 경매가 과열 경쟁으로 사회적 논란과 국가적 손실을 가져오는 것을 방지하기 위해 현시점에서 1.8㎓ 대역에 추가적인 입찰 참여를 중단하기로 했다”며 1조원에 대한 부담감을 우회적으로 밝힐 정도였다. SK텔레콤 관계자도 “이번 경매가 우려스러울 정도로 과열 양상을 보인 것에 대해 유감스럽게 생각한다”며 “이번에 확보한 주파수는 LTE(long term evolution) 용도로 효과적으로 쓸 계획”이라고 말했다.

　하지만 통신업계에서는 벌써부터 낙찰자는 자금난을 겪는 ‘승자의 저주’가 현실화될 것이라는 우려 섞인 목소리도 나온다. 소비자 요금 인상 불가피론도 같은 이유에서 불거지고 있다. 그럼에도 방통위 측은 승자의 저주나 요금인상은 없을 것이란 입장이다. 방통위 오남석 전파기획관은 “사업자가 해당 주파수를 가져감으로써 누리는 시장점유율 상승 등을 고려하면, 승자의 저주가 나올 가능성은 없다고 본다”고 말했다. 요금 인상 우려에 대해선 “요금은 시장과 경쟁 상황에 따라 바뀌기 때문에 (낙찰가 상승으로 인한 일방적인) 요금 인상도 없을 것으로 예상한다”고 덧붙였다.

◆LTE=현재 사용하는 3세대(G) 이동통신에 비해 무선인터넷 속도가 5~10배 정도 빠른 4G 이동통신 서비스다. LTE를 이용하면 스마트폰에서 영화 한 편을 2분 만에 내려받을 수 있다.