Minister Lee Jong-ho Meets with Three Major Telecom Companies: "Please Expedite the Introduction of 5G Mid-Tier Pricing"

First Meeting of Representatives from Three Telecom Companies on the 11th
Urging Expansion of 5G Quality and Coverage
Activation of 28GHz Band and Establishment of Open RAN
Strong Appeal for Active Efforts from Telecom Companies

Minister Lee Jong-ho of the Ministry of Science and ICT

[Asia Economy Reporter Cha Min-young] On the 11th, Lee Jong-ho, Minister of Science and ICT, urged the representatives of the three major telecom companies to expedite the introduction of a 5G mid-tier pricing plan to stabilize people’s livelihoods during their first meeting.

Minister Lee Jong-ho held his first meeting with the CEOs of the three major telecom companies?Yu Sang-yeong, President of SK Telecom; Koo Hyun-mo, President of KT; and Hwang Hyun-sik, President of LG Uplus?at 2 p.m. at the Korea Chamber of Commerce and Industry conference room in Seoul, where they discussed current telecom policy issues such as diversifying 5G pricing plans, expanding 5G coverage and improving quality, and investment plans for new ICT industries.

In his opening remarks, Minister Lee said, "The world-class network infrastructure has been the foundation for South Korea’s growth as an ICT powerhouse," adding, "Even during the recent pandemic crisis, the well-established network infrastructure was wisely utilized for vaccine reservations, online education, and remote work, helping us overcome the challenges."

He continued, "Recent investments by telecom companies in AI semiconductors, talent development, and data for future-oriented new industries will greatly aid in overcoming the economic crisis," and urged, "In this very difficult domestic and international economic environment, I ask the government and the three major telecom companies to join forces and work together to overcome the economic crisis."

He especially requested cooperation from the three telecom companies to diversify 5G pricing plans. Minister Lee noted, "With recent sharp increases in public utility fees and consumer prices, not only the economy but also the stabilization of people’s livelihoods is urgently needed," emphasizing, "To enhance access and expand choices for essential telecom services, active efforts are necessary to launch 5G pricing plans that meet user demand." The government announced on May 30 as part of an emergency livelihood stabilization project that it would "encourage the launch of 5G mid-tier pricing plans within the third quarter."

He also stressed the need for continuous investment in 5G services being built in rural and fishing villages. Additionally, for the advancement and sustainable development of South Korea’s network and public convenience, he urged active efforts for ▲activation of the 28 GHz band ▲creation of an Open RAN ecosystem ▲development of digital technologies and services such as AI, data, and cloud.

Similar topics were discussed during the subsequent roundtable meeting. Minister Lee emphasized the need to launch mid-tier 5G pricing plans that reflect user demand based on data usage, as current 5G plans are limited to small and large data packages. He also requested the three telecom companies to complete their reviews promptly and ensure the swift launch of 5G mid-tier pricing plans.

Regarding the expansion of 5G coverage and quality improvement, he ordered efforts to ensure that coverage is built and expanded without delay to all neighborhoods in 85 cities nationwide and major towns and townships as planned this year. Efforts to improve indoor quality were also mentioned. Discussions were held to invest in the 28 GHz band in preparation for the 6G era and to ensure the smooth establishment of 28 GHz-based subway Wi-Fi.

Furthermore, Minister Lee urged the three company representatives to work on expanding infrastructure and new industry investments and fostering the Open RAN ecosystem. A consensus was also formed on the need to strengthen network stability and accident prevention measures such as network operation management, following the recent communication failure of Japan’s three major telecom companies, including KDDI. On the 2nd, KDDI experienced a large-scale communication outage affecting approximately 39 million people.

Minister Lee Jong-ho stated, “Telecommunications is an essential service inseparable from the daily lives of the people and an industry that must grow and advance together with the public," adding, "I ask that the opinions raised at the roundtable be carefully implemented one by one, and I look forward to close cooperation between the government and telecom companies to resolve various issues going forward.”