The Heated 5G Mid-Tier Plans... The Key Is in the 'Details'

KT and LGU+ Join After SKT
Both Aim for Launch This Month
Expect 30GB Plans Around 60,000 KRW
Focus on Public Welfare Stability
Enable Various Detailed Options

[Asia Economy Reporter Cha Min-young] As SK Telecom has launched the first signal of a mid-tier 5G plan, competition among the three major mobile carriers in their pricing plans is expected to intensify. With political pressure increasing for mid-tier 5G plans, KT and LG Uplus are also expected to accelerate discussions this week to meet their target launch in August.

Will There Be a Monthly Data Plan Over 24GB?

According to the telecommunications industry on the 1st, KT and LG Uplus are considering launching multiple plans offering between 20 and 30GB of data. Since SK Telecom announced it would offer 24GB for 59,000 KRW per month, expectations are high that products providing more data in the 50,000 KRW range will be introduced. Some speculate that plans offering 30GB for around 60,000 KRW are also under consideration.

It remains uncertain whether KT and LG Uplus will launch direct plans, which fall under untact (non-face-to-face) pricing plans. This is because SK Telecom unexpectedly released not only three types of general 5G plans but also two untact plan options. Untact plans are internet plans that do not require a separate contract and do not qualify for selection discounts or bundled discounts. An industry insider said, "We thought SK Telecom would only release general 5G plans and did not consider untact plans, so this unexpected move has caused a lot of deliberation."

The target launch timeframe for the two companies’ mid-tier 5G plans is within August. KT CEO Koo Hyun-mo and LG Uplus CEO Hwang Hyun-sik met with Minister Lee Jong-ho of the Ministry of Science and ICT at the ‘CEO Meeting of the Three Telecom Companies’ on the 11th of last month and promised to "hasten the process." Since the Yoon Seok-yeol administration proposed introducing mid-tier 5G plans in the third quarter as part of measures to stabilize people’s livelihoods, the government has been conducting behind-the-scenes discussions with the telecom industry to meet this goal. Another industry insider noted, "Considering the series of processes such as system development, dealer guidance, and training, discussions should conclude this week, and final preparations should begin next week."

"Pay for What You Use"

Political interest in mid-tier 5G plan policies is high across party lines. After news of SK Telecom’s 24GB plan registration was announced, Yoon Doo-hyun, a member of the People Power Party, criticized, "Although a 5G plan has been introduced, it is very insufficient in terms of public expectations and fair trade," adding, "Although improvements have been made, the range of consumer choices remains narrow and it does not align with the data usage principle of ‘paying for what you use.’" Ahn Jeong-sang, senior specialist of the Democratic Party, also voiced concerns regarding the government’s approval of SK Telecom’s plan, saying, "The absence of plans for users consuming between 25 and 100GB undermines the purpose of introducing mid-tier plans," and emphasized, "A tiered pricing plan proportional to consumption should be introduced along with comprehensive measures suitable for stabilizing people’s livelihoods."

The government has also stated its intention to strengthen efforts and continue encouraging diversification of pricing plans. Hong Jin-bae, Director of the Network Policy Office at the Ministry of Science and ICT, said at a briefing on the 29th of last month, "We do not believe that 24GB will satisfy all consumers," adding, "We think the 50 to 100GB range is necessary and plan to continue discussions." He further added, "Pricing plans need to evolve further. I believe consumer choice should increase."