Ruling Party Pressures 5G Plan Reform: "Pay Only for Data Used"

5G Communication Plan Reform Consumer Rights Enhancement Forum

On the 14th at 2 PM, Yoon Doo-hyun, a member of the People Power Party, held the "5G Communication Plan Reform Consumer Rights Enhancement Forum" at the National Assembly Members' Office Building. Photo by Cha Min-young

[Asia Economy Reporter Minyoung Cha] "Due to the absence of pricing tiers in South Korea's 5G plans, some users are being forced into expensive plans in higher tiers."

Professor Yongjae Kim of the Business School at Hankuk University of Foreign Studies emphasized this on the 14th at 2 p.m. during the "5G Communication Plan Restructuring Consumer Rights Enhancement Forum" hosted by Yoon Doohyun, a member of the People Power Party, at the National Assembly Members' Office Building. He stated, "To strengthen choice and enhance consumer rights, it is desirable to launch various plans with tiers below 100GB."

According to Professor Kim, the monthly 5G data usage and proportions in South Korea are composed of ▲less than 10GB (43.3%) ▲10?50GB (32.9%) ▲50?100GB (11.9%) ▲over 100GB (11.9%). The data usage is skewed toward less than 50GB. While the average is around 27GB, the median is estimated to be much lower at about 15GB.

He also pointed out the issue of limited consumer choice regarding 5G devices. Consumers who want to use LTE communication services face restricted choices due to the carrier-oriented device distribution market and the exclusive release of the latest devices for 5G. Professor Kim noted, "For areas where new communication networks have not been established, it is necessary to prepare safeguards such as lifting subscription restrictions to older generation networks." He also called for fundamental legal amendments, including revisions to the Telecommunications Business Act.

He urged that the government or credible institutions provide statistical data to help users directly assess 5G pricing levels. For example, the UK's communications regulator Ofcom provides "Pricing trends for communications services," analyzing and offering pricing information for wireless and wired telephony, high-speed internet, bundled products, and online video services (OTT).

Within the ruling party, it is expected that pressure on the Ministry of Science and ICT, the main regulatory body, and the telecommunications industry will increase following this forum. Kwon Seongdong, floor leader of the People Power Party, said, "This seminar was held due to concerns that telecom companies are making excessive profits," adding, "We will investigate whether plans like SK Telecom's request for a 24GB limit are feasible, and whether 30, 40, or 50GB plans are technically impossible." Floor leader Kwon previously raised issues regarding the appropriateness of SK Telecom's mid-tier 5G plan reported to the Ministry of Science and ICT on the 11th.

Yoon Doohyun, a member of the People Power Party, also stated, "Although 5G plans have been introduced, they fall short of public expectations and fair trade standards," emphasizing, "While improvements have been made, the range of consumer choices remains narrow and does not align with the data usage principle of 'pay as you use.'" Seong Iljong, chairman of the People Power Party's Policy Committee, added, "It is important to design plans diversely and have reasonable pricing that reflects usage," urging, "Please propose many opportunities to expand the range of choices going forward."