5G Subscribers Surpass 24 Million... Plans Are 'All or Nothing'

5G Subscribers Surpass Half of 4G, Average Data Usage Exceeds 20GB

[Asia Economy Reporter Lim Hye-seon] The number of 5G mobile communication service subscribers has surpassed 24 million, exceeding half the number of 4G (LTE) service subscribers.

5G Subscribers Surpass 24 Million

According to the wireless communication service subscription status released by the Ministry of Science and ICT on the 4th, as of the end of May, the number of 5G service subscribers was counted at 24,042,638. Meanwhile, the number of 4G service subscribers decreased to 47.39 million, marking the first time that the number of 5G subscribers exceeded half of the 4G subscribers. This is an increase of 571,513 (2.43%) compared to the previous month (23,471,125). Looking at the number of 5G service subscribers by telecom company, SK Telecom leads with 11,422,997 subscribers, followed by KT with 7,301,800, and LG Uplus with 5,234,585. The number of 5G service subscribers through Mobile Virtual Network Operators (MVNOs) is 83,256.

The number of 5G service subscribers increased from 4,668,154 in 2019 to 11,851,373 in 2020, and surpassed 20 million in November 2021. On the other hand, the number of 4G service subscribers has been steadily declining. The number of subscribers, which was 55,687,974 in 2019, fell below 50 million in September last year, and recorded 47,389,108 as of the end of May.

Average Data Usage 20GB

The 5G plans of the three major domestic telecom companies are divided into those offering around 10GB of monthly data and those exceeding 100GB. There are only plans priced between 20,000 to 40,000 KRW offering 9 to 12GB, and plans priced between 70,000 to 100,000 KRW offering over 100GB. Consumers’ data usage ranges from 20 to 50GB. Since the launch of 5G services in 2019, the average monthly traffic per 5G subscriber has remained in the 20GB range. Even for unlimited plans, the average monthly traffic per subscriber is less than 50GB. This means that people subscribed to unlimited plans priced around 80,000 KRW per month use less than 50GB of data on average. Considering this, consumers are paying excessive communication fees relative to their usage.

Mid-Tier Plans to Launch Next Month

Household communication expenses have risen for the first time in four years. According to the ‘2021 Annual Household Trend Survey’ released by Statistics Korea last month, the average monthly communication expense per household was 124,000 KRW, an increase of 3.4% compared to the previous year. The average monthly communication expense had been decreasing every year since 2017 but rose for the first time in four years. Excluding spending on food, clothing, housing, and education, this category showed the highest rate of increase last year. In particular, expenses related to mobile phone fees and internet usage fees rose by 4.9%. With inflation rising to 4%, the government’s judgment is to reduce household consumption by cutting communication costs. The telecom industry, entering the fourth year since the introduction of 5G services and with a penetration rate exceeding 40%, agrees on introducing various plans and is preparing a 5G mid-tier plan offering 20 to 100GB of data. The industry expects that the mid-tier plan will be a major agenda item at the meeting between Minister Lee Jong-ho of the Ministry of Science and ICT and the CEOs of the three major telecom companies scheduled for the 11th. The mid-tier plan is expected to be launched next month.