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718 Mobile Plans from 3 Major Carriers: Will an 'Integrated Rate Plan' Be Introduced?

This article was automatically translated by AI. There may be errors compared to the original Korean article.  Read original in Korean →

[비즈한국] Attention is focused on whether hundreds of mobile rate plans can be integrated and simplified. Consumers are finding it difficult to choose due to confusion caused by similar plans being released even within the same mobile carrier, and the government is preparing to launch an 'integrated rate plan' within the year in consultation with the three major mobile carriers: SK Telecom017670, KT030200, and LG Uplus032640. Additionally, there are calls for the launch of a fourth mobile carrier, which could potentially lead to price reduction effects.

It is understood that the number of rate plans operated by the three major mobile carriers, including SK Telecom, KT, and LG Uplus, reaches 718. As consumers are feeling confused and struggling to choose plans, the government is preparing to launch an 'integrated rate plan' within the year. Photo = Reporter Choi Jun-pil
It is understood that the number of rate plans operated by the three major mobile carriers, including SK Telecom, KT, and LG Uplus, reaches 718. As consumers are feeling confused and struggling to choose plans, the government is preparing to launch an 'integrated rate plan' within the year. Photo = Reporter Choi Jun-pil

According to data received from the Ministry of Science and ICT by Representative Choi Su-jin of the People Power Party (proportional representative), a member of the National Assembly's Science, ICT, Broadcasting, and Communications Committee, on the 19th, there are 718 rate plans currently operated by the three major carriers. This figure excludes dozens of budget phone (MVNO) companies, so the total number of mobile rate plans is estimated to exceed 1,000 when budget phone plans are included.

Representative Choi's office explained that the Ministry of Science and ICT is preparing a rate reform to help consumers make rational choices, and is currently working with the three carriers to finalize the plans for a launch within the year. It is reported that this will be an 'integrated rate plan' model that allows users to select plans based on data capacity or transmission speed, regardless of whether they are on LTE or 5G. Representative Choi stated, "As the rate systems of the three major carriers are excessively complex, it is necessary to reduce household communication costs and expand consumer choice by implementing an integrated rate plan that does not distinguish between 5G and LTE."

Mobile carrier rate plans are also a recurring topic of interest during the annual National Assembly audit. According to Statistics Korea, as of the second quarter of this year, the average monthly expenditure on communication services per household (for general households with one or more people nationwide) is 100,000 won, accounting for 3.5% of total consumption expenditure (2.836 million won). During last year's audit, it was pointed out that the three carriers' LTE plans were more expensive than their 5G plans. Recently, controversy arose after it was revealed that while carriers stopped new subscriptions for more than half of their LTE plans, they failed to properly inform existing subscribers of cheaper 5G alternatives. According to the Ministry of Science and ICT, the number of LTE subscription lines for the three carriers reached 9,716,166 as of August this year.

Expensive 5G plans also became a topic of discussion at this year's audit. On the 13th, Representative Lee Hoon-gi of the Democratic Party of Korea (Incheon Namdong-gu Eul) stated during the Science, ICT, Broadcasting, and Communications Committee's audit, "The average monthly mobile fee for the public is 56,000 won, while 5G plans are around 80,000 won; compared to 10 years ago, household communication costs have risen by about 20%, placing a significant burden on the public." He argued, "The three carriers are using the Non-Standalone (NSA) method, which mixes 4G and 5G, and are not releasing proper 5G rate plans. It is impossible not to view this as a cartel formed to prevent a decline in revenue and operating profit."

He also emphasized the need to introduce a fourth mobile carrier, citing the case of Japan. Representative Lee highlighted, "Since Rakuten, Japan's fourth mobile carrier, recently launched an unlimited 5G plan in the 30,000-won range, existing Japanese carriers have also been lowering their prices." In response, Deputy Prime Minister for Science and Technology and Minister of Science and ICT Yoo Sang-im replied, "If the past environment was one where the government set frequency bands in advance and operators had to enter the market within those bounds, we will improve the system so that if an influential operator emerges in the future, they can challenge the market by setting their own frequency bands."

This article was automatically translated by AI. There may be errors compared to the original Korean article.
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