[Asia Economy Reporter Koo Chae-eun] KT Skylife will officially enter the budget phone business starting on the 30th after receiving government approval. KT will now have two budget phone operators, kt m mobile and KT Skylife. In particular, KT Skylife is expanding its business scope comprehensively by entering the budget phone business, a telecommunications wholesale business, following its recent acquisition of the valuable cable company Hyundai HCN.
According to the industry on the 30th, the Ministry of Science and ICT imposed registration conditions on Skylife’s mobile virtual network operator (budget phone) registration. Skylife immediately launched the budget phone product "Skylife Mobile" and also introduced bundled products.
Introducing Nationwide Bundled Benefits
Skylife diversified its budget phone products into a total of 10 cost-effective LTE and 5G plans. Four selectable plans based on voice call usage time are available from 4,400 KRW to 21,800 KRW per month. There is one unlimited voice plan (10,900 KRW/month) and one unlimited data plan (27,300 KRW/month). Fully unlimited voice and data plans are also offered in four types ranging from 17,600 KRW to 42,600 KRW per month depending on the data provision method. Especially, for users aged 65 and older who are major satellite broadcast customers, a separate discounted rate plan and a dedicated plan allowing free use of OTT (online video service) content on both satellite broadcast and mobile phones will be launched early within the year.
Skylife is also the first budget phone operator to simultaneously introduce a "nationwide broadcasting and telecommunications budget bundle." While other budget phone operators provide bundled benefits to customers in specific regions, Skylife offers benefits nationwide based on the wide coverage of satellite broadcasting.
Kim Cheol-soo, CEO of Skylife, said, "With the launch of Skylife Mobile, we have completed the final piece of the puzzle for Skylife’s wired and wireless services, including existing satellite broadcasting and internet. In particular, we will become a practical wired and wireless service provider by applying the lifelong 30% discount home bundle benefit, which combines satellite broadcasting and internet, to mobile as well."
Parent Company KT Also Supports Budget Phone Coexistence
Additionally, the parent company KT plans to promote market revitalization and support coexistence with small and medium budget phone operators in line with Skylife’s entry into the budget phone market. Regarding 5G wholesale prices, KT will lower the two currently offered plans (8GB+1Mbps, 200GB+10Mbps) to the level of SK Telecom, the wholesale provider obligated operator, and will expand wholesale provision of newly launched 5G plans in the future. Furthermore, the wholesale price rate for 5G flat-rate plans’ revenue sharing will be reduced by about 10% from the current 66-75%.
In particular, to prevent unfair practices that occurred earlier this year when mobile carriers attracted budget phone subscribers, KT has incorporated a ban on unfair practices into its internal policies and has been enforcing it since October.
A Ministry of Science and ICT official stated, "While Skylife’s entry into the budget phone market injects vitality into the overall market, concerns about fair competition arise due to the market share expansion of mobile carriers’ subsidiaries in the budget phone market, so registration conditions were imposed. We will review various policy measures such as improving budget phone entry requirements and wholesale provision systems to alleviate market concerns about the market share expansion of mobile carriers’ subsidiaries in the budget phone market."
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