LG U +, before the actual investment in 5G, is ‘stumped’ in relation to the US troops stationed in Huawei equipment in the US Congress.

Entry 2020.12.07 15:17 | Revision 2020.12.07 15:25

The US Defense Authorization Act contains the stock content of the US Army deployment in the countries where Huawei equipment was introduced.
LG Uplus’Real 5G ‘Possible to introduce Huawei equipment in 28GHz band
If the problem of relocation of the US armed forces becomes visible, it is likely that the liability of LG U + will increase.

LG Uplus (032640)Concerns are deepening about Huawei. The US Congress is pushing for legislation to be enacted that considers the exclusion of US military and strategic weapons from countries that have introduced Huawei’s 5G (fifth generation) mobile communications equipment. . It is noted that in the sense that the United States Senate and the House of Representatives are promoting together, even if the Joe Biden administration launches in January next year, Huawei’s sanctions driven by the administration of Huawei are anticipated to continue. Donald Trump.

However, it is difficult for LG Uplus to exclude Huawei equipment already installed in the metropolitan area. It is also interesting that LG U + introduces Huawei equipment in a 28 GHz (gigahertz) base station called ‘Real 5G’ with a long time until the establishment of the national 5G network.

According to the telecommunications industry, on the 7th, LG U + will build a 28 GHz base station on Huawei’s 5G network. Samsung Electronics (005930)We made a contract with and the introduction of Huawei equipment is weighing on. An LG Uplus official said: “It has not yet been decided whether to introduce Huawei equipment in the 28GHz band.”

The 5G domestic frequency band is divided into a 3.5GHz band that is 3-4 times faster than LTE and a 28GHz band that is 20 times faster than LTE. The communications industry has emphasized that 28GHz is ‘real 5G’ several times since the beginning of the commercialization of 5G. Including LG Uplus SK Telecom (017670), KT (030200)The 28GHz band service is expected to be commercialized in the first half of next year.

LG U + will open a 5G showroom at Geumo Institute of Technology on the 8th and will demonstrate 5G band 28㎓. This is the first case in Korea that tests the operation of a 28㎓ base station.

Initially, some of the industry took it for granted that LG U + introduced the Huawei 5G equipment in the 3.5GHz band after overcoming the “ security issue ” controversy in the initial 5G commercialization, and subsequently introduced the equipment 28GHz for granted.

A telecom industry official said: “For LG U +, which aims to reverse its share of the wireless market via 5G, it would have been a reasonable choice at the time of the decision to introduce Huawei equipment with good cost performance, even at the expense of brand equity. “

However, after the Trump administration regulated Huawei and asked its allies to “not use Huawei equipment,” LG U + ‘s position was shameful. US government officials openly questioned the LG U + introduction of Huawei 5G equipment.

Among them, the information contained in the US Defense Authorization Act (NDAA) 2021 FY2021, which was published on the 6th (local time), makes the position of LG Uplus more puzzling. The bill, which was agreed to by the U.S. Senate and House of Representatives, and will soon be approved by vote, included a clause that states that the Defense Ministry should reconsider sending troops and equipment to countries where they are It uses 5G technology from Chinese companies such as Huawei and ZTE. .

Moving forward, the US Department of Defense must consider the risk factors that a country’s 5G network may pose to personnel, equipment and operations when deploying power, such as troops and equipment abroad. . He directly stated the risks of Huawei and ZTE. The United States Congress is expected to process a defense authorization bill containing this within days.

Until now, the Korean government has held a position of “a problem for companies to solve” regarding the introduction of LG U + of Huawei equipment, but the situation could change. Going forward, if the United States raises such issues on issues such as the relocation of US forces to Korea and the purchase of strategic weapons, it is in a situation where LG U + liability may arise.

Of course, many point out that it is impossible to directly link this content to the reduction of US forces in Korea just because it has been included. This is because the Defense Authorization Act presupposes the condition “does it pose a threat to the US troops stationed there.” The United States has raised a problem with the Korean government that the Huawei equipment written by LG Uplus directly threatened US forces in Korea. none.

However, it is known that LG Uplus withdrew Huawei equipment from US military units in protest by the US at the time of the construction of the LTE base station.

If LG U + is faced with a situation where it has to recall equipment that has been built so far beyond the misappropriation of the introduction of Huawei 28GHz equipment, the company will take a big hit. Huawei accounts for about 30% of LG Uplus 5G base stations currently built.

According to Choi Nam-gon, a researcher at Yuanta Securities, LG U + 5G and other CAPEX (equipment investment) amounted to 2.6 trillion won in 2019 and 2.5 trillion won this year.

In particular, since the Ministry of Science and Technology and Information and Communications recently decided to make a difference in the cost of reallocating the 3G and LTE frequencies to induce the expansion of 5G investment, the management risk caused by Huawei has increased.

Regarding Huawei’s current problem, LG Uplus maintains the position that “there is no problem with the security of the 5G network (the company has built)”.