LG Uplus wins 'golden' spectrum for super-fast wireless service

SEOUL, Aug. 17 (Yonhap) -- LG Uplus Corp. won the "golden" spectrum of 2.1 GHz for its super-fast wireless service, telecom regulators said Wednesday, setting the stage for the nation's smallest mobile phone operator to aggressively compete with its two bigger rivals in the soaring market for smartphones.
The winning bid by LG Uplus has been widely expected because its two rivals -- SK Telecom Co. and KT Corp. -- were banned from joining the spectrum auction to ensure fair market competition.
LG Uplus bought the 2.1 GHz band, widely used for smartphone services around the world because it can handle more mobile data traffic, for a minimum price of 445.5 billion won (US$415.1 million), the Korea Communications Commission (KCC) said in a statement.
Last month, LG Uplus launched the super-fast wireless service using the fourth-generation mobile technology called long term evolution (LTE) and the new spectrum is expected to help it attract new subscribers.
"With the use of the 2.1 GHz band, subscribers will be able to use their smartphones in a pleasant environment," an official at LG Uplus said.
At Wednesday's auction, the 800 MHz and 1.8 GHz bands were also put up for sale.
SK Telecom and KT were vying for the 1.8 GHz band and the price for the spectrum soared to 492.1 billion won after 11 rounds of bidding. The auction for the 1.8 GHz band will be resumed on Thursday, the KCC said.
The number of smartphone users in South Korea, one of the world's most-wired nations, stood at 15 million in July, according to government data.
The figure is expected to hit 20 million by the end of this year, accounting for about 40 percent of the overall wireless market.