The South Korean regulator plans to auction LTE spectrum in August, but has barred the country’s top two operators from bidding for new airwaves in certain frequency bands. According to a Dow Jones Newswires report, the Korea Communications Commission (KCC) said SK Telecom and KT Corp. will not be allowed to bid for the 2.1GHz band auction to ensure fair market competition. The move is seen as a fillip for the country’s third (and smallest) mobile operator – LG U+ – which welcomed the government’s position. “Once LG U+ secures the 2.1GHz band, we will actively invest in the fourth-generation LTE technology and will focus on offering advanced services to our customers,” the operator said. SK, meanwhile, described the plan as unfair. “We see with deep regret that the latest spectrum allocation plan emphasises the fairness of business among operators rather than the efficient usage of public resources,” SK said in a statement.

The regulator plans to raise at least KRW1.15 trillion (US$1.1 billion) through the auction of LTE spectrum across three bands. Bids for the 800MHz spectrum will start at KRW261 billion and the starting bid price for the 1.8GHz and 2.1GHz spectrums will be set at KRW445.5 billion in both cases. Licences should be allocated to operators by early August, according to the report. Operators will be able to use the 1.8GHz and 2.1GHz spectrums for ten years. The 800MHz band will be open for use from July 2012, the KCC said.