Shares of SK Telecom Co., South Korea’s top mobile carrier, have jumped on hopes for revenue boost as the top wireless carrier is expected to walk away with the largest share - up to 100 megahertz (MHz) - from 5G 3.5 gigahertz (GHz) frequency auction on Friday.

The Ministry of Science and ICT has begun the auction for the 280 MHz of the 3.5 GHz frequency band and 2,400 MHz of 28 GHz band on Friday morning with a cap on the 3.5 GHz spectrum, which is considered as the key in winning the 5G race. The 280 MHz of the 3.5 GHz spectrum will be sold in 28 blocks or maximum 10 MHz.

Cash-rich SK Telecom is vying for the maximum 100 MHz, leaving the other two KT Corp. and LG Uplus Corp. to share the remainder 180 MHz.

Investors are snatching up the winning shares, sending SK Telecom to finish Thursday 9.3 percent higher from a month ago at 241,500 won. SK Telecom shares closed Friday at 234,500 won, down 2.9 percent from the previous session.

Until the end of March, the outlook for SK Telecom had remained murky as it delivered the most disappointing first-quarter earnings results among the country’s top 3 mobile carriers. Its operating profit in the January-March period dipped 20.7 percent to 325.5 billion won ($299 million) against a year earlier period and its revenue over the same period shrank 1.25 percent to 4.2 trillion won.

By Park Jae-young and Cho Jeehyun

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