Strengthening Cooperation with Small and Medium Businesses
KT Launches 'BaroUSIM'
Available for All Customers
LG Uplus Introduces '+Alpha'
Consulting for Small and Medium Businesses, AI Call Center Support
Enhanced Benefits for Long-Term Altteul Phone Subscribers
[Asia Economy Reporter Cha Min-young] As the government is considering limiting the market share of the three major telecom companies' MVNO subsidiaries, KT and LG Uplus have strengthened their win-win cooperation with small and medium-sized MVNO operators, aiming to secure leadership in the MVNO market.
KT's Shared SIM, LG Uplus's Unified Brand
On the 18th, KT launched ‘Baro SIM,’ a SIM card that supports subscription to plans from 23 MVNO operators. It is a SIM card that can be used by both KT customers and KT MVNO customers without distinction and is sold nationwide at Emart24 convenience stores. Customers who purchase Baro SIM can activate it immediately through the ‘self-activation’ service of KT MVNO operators without going through the customer center. Choi Se-jun, KT’s MVNO manager, said, "Baro SIM was prepared to meet the needs of KT and KT network MVNO users and to assist small and medium MVNO operators who face difficulties in SIM order reception, delivery, and SIM store partnerships."
At the end of last month, KT also opened ‘My Alttelpon,’ the first integrated customer service (CS) channel among the three major telecom companies. This service platform includes a total of 24 MVNO operators such as Pritelecom, Unicoms, M Mobile, and Skylife, serving as a customer center window for MVNO customers. It allows users to check subscription line information, usage and billing inquiries, report lost devices, and temporarily suspend service. KT is thus helping small operators with their manpower shortages.
LG Uplus introduced the integrated MVNO brand ‘+Alpha’ last month and started expanding its subscriber base. It provides consulting and AI call center support to small operators and has enhanced benefits for long-term MVNO subscribers. LG Uplus also offers MVNO consultations at its stores and has launched subscription-based partnership plans, shared SIM cards, and expanded self-activation services.
SK Telecom Maintains a Passive Stance
According to the Ministry of Science and ICT, as of May, the number of MVNO subscribers in South Korea, including IoT lines, was approximately 11.39 million, an increase of about 1.04 million from 10.35 million at the end of last year. During the same period, the subscriber numbers of the existing three major telecom companies remained at similar levels. The reason KT and LG Uplus have actively supported small and medium MVNO operators is that the political and government sectors plan to limit the market share of the three major telecom companies' MVNOs. As of December last year, the market share of the three major telecom companies' MVNO subsidiaries was recorded at 51.7%. Including IoT lines, the share drops to 30.4%, but voices calling for normalization of the MVNO market in line with the original purpose of checking telecom companies have grown louder. The Fair Trade Commission is also reportedly investigating whether the three major telecom companies engaged in unfair practices such as restricting competition in the MVNO market.
The reason SK Telecom, the top operator with a market share in the 40% range, shows a relatively passive attitude in the MVNO market is closely related to this. The more low-profit MVNO lines increase, the higher the possibility of customer churn. SK Telecom quietly welcomes the political and government moves to limit the three major telecom companies' MVNO market share. Yoo Young-sang, CEO of SK Telecom, expressed a lukewarm stance regarding the government's MVNO restriction moves, saying, "I hope the policy will be decided considering both the activation of MVNO services and coexistence with small and medium operators."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
