The South Korean government has officially revoked Stage X’s license as the nation’s fourth mobile operator, citing the company’s inability to secure necessary financing and fulfill other critical requirements. The Ministry of Science and ICT (MSIT) confirmed the decision, noting that Stage X failed to comply with the legal obligations and conditions set for the frequency allocation.
As part of the cancellation process, the MSIT has refunded the KRW43 billion ($31.1 million) that Stage X paid for the 28GHz spectrum allocation. Stage X, which was awarded the mobile license in February with a commitment to invest KRW430 billion, was unable to meet the frequency allocation requirements, leading to the ministry’s decision to terminate the license.
The ministry also identified differences in the ownership ratios of major stakeholders compared to what Stage X had originally reported in its frequency allocation application, further undermining the company’s compliance with regulatory standards.
Despite these issues, Stage X has maintained that the government’s decision to revoke its license is unfair and has vowed to pursue legal and administrative remedies. An official from the company revealed that Stage X is exploring various options, including the possibility of filing a lawsuit for damages against the government, indicating the potential for a prolonged legal battle.
Stage X, a consortium led by Kakao’s affiliate Stage Five, had been set to become South Korea’s fourth mobile carrier, joining the ranks of SK Telecom, KT, and LG Uplus. The company had plans to launch 5G services nationwide in the first half of 2025, leveraging spectrum in the 28 GHz band. Stage X had committed to investing KRW612.8 billion in building out its network, including the installation of 6,000 base stations, which is the mandated standard for the 28 GHz frequency band.
The consortium had managed to secure the 28 GHz spectrum earlier this year, outbidding competitors like Sejong Telecom and My Mobile Consortium, and had committed to investing KRW430 billion ($311.6 million).
However, doubts arose about Stage X’s ability to raise the necessary funds to develop a nationwide network. The MSIT ultimately determined that the company’s financial and ownership discrepancies warranted the cancellation of its license.
Second Vice Science Minister Kang Do-hyun previously emphasized that the government had determined the capital-raising efforts claimed by Stage X were unreliable. He noted that without securing the full capital specified in their application, it would be difficult for Stage X to conduct its business effectively. This lack of financial security was seen as a risk to future partnerships with equipment manufacturers, investors, and users, making the cancellation of Stage X’s license unavoidable.
Kang also indicated that the government might consider reopening the 28 GHz spectrum band for another auction if necessary. This spectrum, critical for 5G services, had previously been revoked from all three major South Korean telcos—SK Telecom, KT Corporation, and LG U+—due to their failure to meet the required standards. SK Telecom lost its license in May of last year, and KT Corporation and LG U+ saw theirs canceled in 2022.
In addition to the local developments, Stage X announced a strategic collaboration in May with Japanese firms Rakuten Mobile and Rakuten Symphony. Despite these international partnerships, the consortium, led by Kakao’s MVNO affiliate Stage Five, could not overcome the financial and regulatory challenges that ultimately led to the cancellation of its mobile license in South Korea.
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