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Irangtech's challenge to lead innovation through frequency integration technology

– Conquering the global market with frequency interference removal technology

– It is drawing attention as a technology that will lead the communications revolution in the era of openness and sharing.

– “Find opportunities globally”

“To solve the frequency interference problem, each carrier is installing its own base station. The problem is that although the call interference problem has been solved, they are hesitant to install base stations due to the cost burden. If multiple carriers can provide services together from one base station, 5G can spread much faster.”

Lee Jae-bok, CEO of Irangtek, is a communications expert who has been digging one well for 28 years. After serving as the head of the research lab at Telwave and Airtech Systems for 20 years, he started a new challenge of communications network integration by founding Irangtek, a communications infrastructure equipment manufacturing company, in 2017. We met with CEO Lee Jae-bok to learn about communications network integration equipment technology and the market.

5G slower than LTE

Korea was the first country in the world to commercialize 5G, but even after five years, there are still complaints that '5G is slower than LTE'. What on earth is the problem?

Communication is done through radio waves, and when radio waves of various frequencies coexist in one space, they have the characteristic of interfering with each other. This is similar to the phenomenon that occurs when several stones are thrown into a calm lake and the waves collide with each other. Sometimes, when you are on a call, you hear someone else's voice along with the other person's voice due to this radio interference.

Interference was not a big problem in the 2G era when voice calls were the main focus. However, starting with the 3G era when data communications such as video began, concerns about interference began to grow. In the LTE era, which processes large amounts of web-based data, and the 5G era, which provides cutting-edge services such as autonomous driving and telemedicine, interference issues have become an even more important issue due to the rapidly increasing amount of data.

To solve this interference problem, telecommunications companies started installing separate base stations. The interference problem was solved, but the cost of installing and operating base stations became an issue. The biggest technical limitation of 5G communication is that dense base station installation is essential. While 4G (LTE) uses low-frequency bands and has a long radio transmission range, 5G uses high-frequency bands and has a relatively short radio transmission range. As a result, up to four times as many base stations are needed to provide communication services in the same area as LTE. Since telecommunications companies must install base stations to cover each service area regardless of the number of subscribers, physically, three times more base stations are needed than before. In a situation where the existing LTE investment has not been fully recovered, it is not easy to decide to make bold additional investments in 5G.

5G base stations are called 'power-eating hippos'. This is because their power consumption is 2-3 times higher than that of LTE due to the use of high frequencies. In particular, as carbon neutrality has become a hot topic in response to climate change, power consumption has become an even more sensitive issue.

Due to a combination of issues such as high construction costs and excessive power consumption, the spread of 5G services is progressing much slower than initially expected.

Solving Frequency Interference Problems ' Wireless '

Irangtek attempted to solve this problem by developing a 'multiplexer' that allows telecommunications companies to share a single base station. Its unique feature is that it solves the interference problem that occurs when the frequencies of multiple telecommunications companies are mixed.

In order to tie together the different frequencies of each telecommunications company, they must be connected with copper wires. This process causes serious interference. Irangtek recognized that interference occurred due to copper wires and solved the interference problem with a 'wireless' method that does not use copper wires at all. Irangtek's 'common pole' solution (wireless combine) is a technology that can tie together multiple frequencies without wires.

The representative explained using a road metaphor. “If there is a 10-lane road with only one exit, cars will pile up and cause congestion. However, if you install a roundabout in front of it, cars will be able to pass through smoothly. Our technology organizes the frequencies of various telecommunications companies in an orderly manner so that they can be transmitted without interference.”

The common-pole solution developed by Irangtek is a technology that can combine multiple frequencies without collision even if they are input simultaneously, and can process them simultaneously without interference when outputting. In particular, this technology implements a PIMD (intermodulation distortion signal) of 150dBc or more, completely satisfying the integrated network standards required by international standards. Irangtek's common-pole method is the world's first technology developed, and is characterized by its applicability to all communication generations from 2G to 5G. It has already been patented in the United States, Japan, and China, and has recently applied for a patent in India, acknowledging the excellence of its technology.

With the commercialization of Irangtek’s public-pole technology, the cost of building base stations for telecommunications companies has been reduced by at least one-third. This cost reduction is expected to accelerate the spread of 5G services and ultimately lead to lower telecommunications costs for consumers. In addition, the reduction of telecommunications equipment through this technology provides various additional benefits. It makes building management easier, reduces the risk of accidents such as fire, and helps improve the appearance of cities. Particularly noteworthy is the dramatic reduction in power consumption. Regarding this, CEO Lee explained, “SK Telecom was able to reduce power consumption by up to 53% by applying our technology to integrate 3G-LTE equipment.”

In line with the values of 'open lan'

The Open RAN (Open Radio Access Network) movement, which aims to share network construction designs and jointly use equipment, is being explored in the telecommunications industry. Open RAN means building interfaces and base station operating systems (OS) required for wireless base station connections as open standards. It is a core technology for 5G mobile communications that advocates flexible technological evolution by breaking away from hardware (HW) dependency of network equipment.

This representative said, “From 2G to LTE, telecommunications companies have maintained their own independent networks. They have operated in a closed manner, like a garden surrounded by high walls, without disclosing their own technology as well as that of other companies. However, as we entered the 5G era, this closedness has reached its limits. It has become difficult for individual telecommunications companies to handle the enormous construction costs and power consumption issues. This is when OpenLAN emerged as a new solution for the telecommunications industry to solve these problems,” emphasizing that OpenLAN is in line with Irangtek’s technological direction.

Seizing opportunities in the global market

Recently, Irangtek signed a three-year, 78 billion won supply contract with Parallel Wireless (PW), an American communications equipment manufacturer. This is a contract to supply 480,000 multiplexers to the European market.

The representative explained the potential of the global market, saying, “The global market still has a lot of opportunities. Out of the 190 countries around the world, half are still using 2G and 3G, and many countries are just starting LTE. Considering the point in time when the overseas 5G market is fully expanding, the demand for repeaters is expected to continue for at least the next 10 years.”

In response, Irangtech is currently building production bases in China and Vietnam, and is also making full-fledged inroads into the Indian market. In India in particular, the company plans to establish a manufacturing base by establishing a joint venture with a local company, while the headquarters will focus on R&D and marketing.

The representative expressed his ambition, saying, “With our technology, automation of the entire process will become possible, and we will grow from a Korean-grown Irangtech to a global-grown Irangtech.”

Development of a platform for sharing measuring equipment

In addition to its main business of communication filters, Irangtek has also developed the 'NAS Cube', a measurement equipment sharing platform. Measurement equipment essential for the manufacture of communication equipment is expensive equipment costing 100 million to 300 million won per unit, and currently, only the top 3 global brands monopolize the market, making the burden of introduction for companies very high. NAS Cube is an innovative solution that allows up to 4 people to use one measurement equipment at the same time.

The representative explained, “As production volume increases, purchasing additional measuring equipment would be too costly, so we decided that it would be more effective to share existing equipment efficiently. In particular, global measuring equipment companies are also welcoming our technology because it can increase the utilization of their used equipment.”

“Understanding the market and global target strategy required”

Irangtech plans to start turning a profit in 2024 and pursue a special listing on the KOSDAQ Materials, Components, and Equipment list in 2026. Regarding this, CEO Lee expressed confidence, saying, “Next year, we will achieve operating profit of 3 to 4 billion won.”

Meanwhile, Irangtek has overcome numerous difficulties, including the difficulty of selling to large telecommunications companies and watching many telecommunications equipment manufacturers disappear from the market. Based on this experience, CEO Lee added advice to junior entrepreneurs, “You need a thorough financial plan that can last at least 7 years, and at the latest 10 years. Technology alone is not enough; you definitely need to understand the market and have a global perspective.”