T map Zero-Rating Ends, Opportunity for Kakao Navi?

[Asia Economy Reporter Kang Nahum] As T map Mobility has decided to stop providing T map data for free, attention is focused on whether there will be changes in the navigation market share. There is also an analysis that 'Kakao Navi,' which ranks second in market share, has seized an opportunity to expand its user base.

According to the related industry on the 21st, T map Mobility has decided to end the zero-rating benefit for T map data charges and notified customers of this. Accordingly, SK Telecom customers will now have data deducted when using T map, just like existing KT or LG Uplus members.

This measure is due to the possibility of violating the Fair Trade Act. Since the entity providing the T map service changed from SK Telecom to the spun-off T map Mobility, giving data free usage privileges to affiliates could violate the Fair Trade Act.

T map Mobility stated that the average monthly data usage per user on T map is about 48MB, which is negligible compared to the recent average monthly data usage of over 10GB by mobile subscribers, and expects that the burden on users will not be significant in the future. The 48MB data corresponds to watching 3 minutes of YouTube videos or playing music for 20 minutes.

However, there is also an analysis that this could bring a windfall benefit to a strong competitor, Kakao Mobility. Kakao Mobility operates 'Kakao Navi,' which holds the second largest market share in the navigation market.

Previously, in 2019, Kakao Mobility launched 'U+ Kakao Navi' together with LG Uplus, applying zero-rating (no data charges) for LTE and 5G customers using LG Uplus MVNO.

In addition, Kakao Mobility is recently preparing various services linked with Kakao Navi to enhance customer convenience. Starting next month, it plans to provide 'on-demand car wash and maintenance' services and 'car price inquiry and car selling' services for private car owners who have registered their vehicles on Kakao Navi.

The 'on-demand car wash and maintenance' service features a one-stop process through the app, from checking information of partner companies to using the service at the desired time and place and making payments. To provide this service, partnerships have been established with a total of 13 companies including Gatcha, Bullsone, Steam Doctor, MDOto, In&Out Wash, Jet Steam, Car & People, King Car Wash, Team Wiper, Bullsone, Karang, Kajen, Cloud Nine, and AJ Carian Service.

The 'car price inquiry and car selling' service is operated in cooperation with K Car, the largest direct-operated used car company in Korea. Users can check the current market price of their owned vehicles and, by applying within the app, can have their vehicles evaluated on-site and sell them.