LG Uplus, the nation’s third-largest telecom operator, said that it would invest 1.5 trillion won ($1.4 billion) to build wire and wireless networks, including a 2.6 GHz long-term evolution system.

The amount is equivalent to 39.6 percent of its capital and roughly equivalent to its total investment in facilities for this year, which amounts to 1.5 trillion won.

The company is pushing ahead with the investment in 2.6 GHz that it acquired during the government frequency bidding in September, hoping to stay ahead of its two rival companies.

LG Uplus would use its cash and, if necessary, issue corporate bonds, sources said. The mobile operator holds 276 billion won in cash as of the third quarter, but it expects the figure to increase next year with the rising number of LTE subscribers.

“The investment decision was made so that we can reach the forefront of the LTE market, as data traffic is expected to grow down the road,” an LG Uplus official said.

In Korea, three telecom operators have vied for faster speed through LTE-Advanced and wideband LTE services since SK Telecom and LG Uplus first started their LTE services at a maximum speed of 75 Mbps in 2011.

KT is now capable of providing services at a maximum speed of 150 Mbps after it acquired 1.8 GHz during the government frequency bidding and is scheduled to provide nationwide services by January.

SK Telecom recently held a demonstration of its maximum 225 Mbps service potential through a combination of 1.8 GHz LTE and 800 MHz LTE-Advanced. This service may be launched in the second half of next year.

By Shin Ji-hye (shinjh@heraldcorp.com)