Korea’s major telecom firms are gearing up to commercialize an ultrafast millimeter-wave 5G network this year, starting with the business-to-business sector, according to industry sources Monday.

The next-generation 5G network uses mmWave technology to transmit large data packets at faster speeds. In theory, on the 28-gigahertz band the network speed could reach 20 gigabits per second.

Samsung Electronics announced that it has tested a high-frequency 5G network station, confirming that its current infrastructure allows smart devices to download data at 8.5 Gbps speed.

Local telecom firms, with government backing, are planning to introduce the new 5G technology while expanding the existing 3.5-GHz band infrastructure.

Under an ICT Ministry plan announced in 2018, the three major telecom firms here will install around 45,000 next-generation 5G stations by 2021.

“Stations for the mmWave 5G network will be installed in areas that handle high loads of data traffic,” a company official explained, adding that the initial focus will be on the B2B sector, most likely in smart factories.

The companies also plan to try out 5G modules or mobile hot spot devices.

However, they have not yet finalized investment plans for the business-to-consumer sector, as the cost of building additional infrastructure is a major issue.

Unlike Japan and the US, Korea started offering 5G network services with stations that support the 3.5-GHz band. To introduce the new 5G network, more stations need to be installed across the nation.

Installing the stations could be extremely costly, as they cover a smaller range. The high-frequency 5G signals don’t travel very far, meaning telecom companies would have to install more stations for equivalent coverage.

Compared with one of the existing LTE network devices, a 5G station using mmWave technology can cover an area approximately one-quarter as big. Coverage could also vary depending on variables such as geographical features.

Due to the cost issue, the introduction of the 5G network for personal smart devices is likely to start within 2021 or 2022.

“We are currently planning on bringing a 28-GHz band 5G network for B2B areas this year. But in terms of B2C, the company is still reviewing various options,” an SK Telecom official said.

Local telecom firms also need to coordinate with related industries for the commercialization of a 28-GHz band network.

In Korea, there are no smart devices that support a 28-GHz band 5G network. Samsung Electronics’ Galaxy Note 20, slated to launch in the second half of the year, is slated to be the first.

By Shim Woo-hyun (ws@heraldcorp.com)