Stage X, poised to become South Korea’s fourth mobile network operator, is now facing the revocation of its license due to financial discrepancies. The government is reportedly on the verge of pulling the plug on the firm’s spectrum rights, according to Yonhap news agency, which cited a statement from the Ministry of Science and ICT (MSIT).
Earlier this year, Stage X secured spectrum in the 28 GHz band with plans to launch services in 2025. However, it failed to meet a crucial financial requirement—a 205 billion won (US$149 million) paid-in capital commitment. Consequently, the MSIT has initiated proceedings to revoke Stage X’s license.
This development is a setback for both Stage X, which had serious intentions of entering the mobile market, and the government, which has been eager to foster more competition within the sector.
Stage X emerged victorious over Sejong Telecom and My Mobile Consortium, agreeing to pay 430.1 billion won (US$322 million) for the 28 GHz frequencies. These frequencies were previously held by South Korea’s top three mobile operators—SK Telecom, KT Corp, and LG U+—but were withdrawn after they failed to meet rollout requirements. SK Telecom’s license was revoked last May, with KT Corp and LG U+ losing theirs in late 2022.
Stage X’s bid was significantly higher than what the major operators had paid for the same spectrum in 2018. The company appeared committed to its launch plans, even striking a deal with Rakuten to use its Rakuten Symphony platform, hinting at a cloud-based Open RAN rollout.
Despite these promising signs, the sudden turn of events leaves Stage X’s future uncertain. Comparisons with Rakuten’s challenging journey in Japan highlight the difficulties new entrants face in saturated markets. Rakuten Mobile, despite reaching 7 million customers, still lags far behind Japan’s major carriers, which collectively serve over 212 million users.
In South Korea, the dominant trio—SK Telecom, KT Corp, and LG U+—boast a combined 69 million mobile customers. Stage X would have faced significant challenges in carving out a profitable niche.
The specifics of when MSIT will revoke Stage X’s license remain unclear, as does the company’s response or potential appeal. However, given the government’s push for increased market competition, further actions to encourage new entrants are likely.
