Stage X looks to disrupt Korea's telecom industry with $460M 'real 5G'

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Stage X looks to disrupt Korea's telecom industry with $460M 'real 5G'

Published: 07 Feb. 2024, 18:00

SHIN HA-NEE
[email protected]

Stage X CEO Seo Sang-won speaks during a press conference held on Wednesday in western Seoul. [STAGE X]

Stage X, an upcoming entry into Korea’s telecom industry, will pour 612.8 billion won ($461.6 million) into building its “real 5G” network infrastructure, its CEO said Wednesday.

It is a significantly low figure compared to what the three major carriers — SK Telecom, KT and LG U+, which have long dominated the market — have invested so far, according to Stage X CEO Seo Sang-won, who promised to come up with “subscription plans with unbeatable pricing” within the first half of next year.

“We will invest a total of 612.8 billion won in securing the [operating rights for] 28 gigahertz spectrum, and establishing 6,000 network installations, which is about 5.5 percent of the amount that other carriers have invested,” said Seo during a press conference held on Wednesday in western Seoul.

As Stage X, a consortium created by a mobile virtual network operator Stage Five, recently won a bid to carry the 5G 28 gigahertz spectrum from the government offering 430.1 billion won, the actual amount of investments dedicated to facilities is estimated at around 182.7 billion won.

The goal is to achieve a turnaround in three years, Seo said.

“We will invest the money we saved into increasing benefits for customers and R&D [research and development] to create new jobs,” said Seo.

Its network system will be virtualized, powered by cloud computing, which the CEO argues will enable lower costs and increased scalability.

As Korea’s mobile telecom market has been monopolized by three companies, the addition of Stage X is expected to stimulate competition. But the higher-than-expected winning bid price has led to some concerns about the project’s financial feasibility.

Seo said a “customer-centered subscription plan with an affordable price, a real 5G connectivity experience and being a trustworthy carrier for all” are the company’s main goals.

“What Stage X defines as ‘customer-centered’ subscription plan is not adding something that a customer needs, but boldly removing what they do not need,” said the CEO, adding that the carrier will cut the offering price significantly by reducing commission fees and supply chain.

Real 5G refers to ultra-fast 5G connectivity that utilizes the 28-gigahertz band, marketed to be up to 20 times faster than 4G in terms of download speeds. Currently, 5G consumers have access to the 3.5-gigahertz band.

Stage X will establish a legal entity for the business by the second quarter of this year and launch a nationwide telecom service by the first half of next year.

BY SHIN HA-NEE [[email protected]]