5G Plan Costs Are a Burden, but LTE Phone Usage Decreases Every Year

Decrease in New LTE Device Releases
Even These Are Budget Models Like Xiaomi
High-End 5G Quality Complaints Persist

[Asia Economy Reporter Minyoung Cha] Amid ongoing consumer complaints about expensive 5G plans, the number of new LTE-only devices released by the three major telecom companies has dropped to one-quarter of the level seen three years ago.

According to data submitted by the Ministry of Science and ICT to Rep. Youngsik Kim of the People Power Party on the 21st, the number of new LTE-only devices released by the three telecom companies (SK Telecom, KT, LG Uplus) decreased annually from 86 in 2019 to 49 in 2020 and 23 in 2021. This represents a reduction to one-quarter in just over two years.

Looking at the released devices, most are non-mainstream products such as budget smartphones with low domestic demand from Chinese brand Xiaomi, including the ‘Hongmi10’, ‘Redmi10’, ‘Redmi Note 10’, and ‘Redmi Note 10 Pro’, as well as silver phones and kids’ phones. Some Samsung Galaxy A series devices exist, but only low-numbered, low-cost models like the A12 to A32.

As LTE-only devices decrease, consumer choice is also limited. Currently, telecom carrier-exclusive 5G devices can only be newly activated with 5G plans. Although related laws were revised around August 2020 to allow new activations with LTE plans for self-purchased 5G devices, carrier-specific 5G devices have remained under existing terms due to opposition from the telecom industry. Consumers who want to use LTE plans on carrier-specific devices must first activate the 5G device with a 5G plan and then remove and use the LTE SIM card they previously used. This is a kind of ‘workaround’ SIM swap method.

The Ministry of Science and ICT, the relevant authority, explained, "When transitioning from 3G to LTE in the past, LTE devices were only allowed to subscribe to LTE plans, and considering the large number of LTE devices and the autonomy of corporate business activities, the current policy has been maintained."

However, as consumer dissatisfaction with 5G service quality compared to 5G fees continues, there are calls for urgent system improvements. Last year, 683 people gathered through the joint lawsuit platform Angry People filed a lawsuit for non-performance due to dissatisfaction with 5G service quality. Another 5G class-action lawsuit against the three telecom companies, conducted by law firm Serim, is also scheduled for a second hearing next month. In a survey conducted by the Korea Consumer Federation in January targeting 1,000 5G users, 56.1% of service subscribers responded that "they subscribed to 5G service because the latest smartphones were released exclusively for 5G."

The government also recognizes consumer complaints and is continuing discussions with the three telecom companies to allow new activations with LTE plans on carrier-exclusive 5G devices. A Ministry of Science and ICT official said, "Ultimately, the core of consumer dissatisfaction lies in the high cost of 5G plans, so telecom companies are striving to offer various plans," adding, "We are continuing discussions with telecom companies to reform the current system."