SKT 5G Online Plans Cheaper Than Alttel Phones... Industry Faces Worries

SKT Online Plan Restructuring... Including Fixed-Mobile Bundles
KT and LGU+ Also Expected to Reverse Prices Soon... "Difficult to Compete in 5G"

[Asia Economy Reporter Oh Su-yeon] SK Telecom has significantly revamped its online plans, resulting in a price inversion phenomenon where 5G plans have become cheaper than MVNO plans. KT and LG Uplus are also preparing to revise their online plans, including 5G. The MVNO industry, having lost price competitiveness, is facing deep concerns.

Analyzing SK Telecom's new online plans on the 21st, the newly established 110GB 'Direct 5G 48 (48,000 KRW, 110GB data)' plan is 5,900 KRW cheaper than SK Seven Mobile's '5G USIM (110GB+/Unlimited Calls)' plan priced at 53,900 KRW per month. The 'Direct 5G 55 (55,000 KRW, 250GB data)' plan is 6,600 KRW less expensive than SK Seven Mobile's '5G USIM (200GB+/Unlimited Calls)' plan and offers 50GB more data.

The 'Direct 5G 38 (38,000 KRW, 11GB data)' plan is 1,600 KRW cheaper than KB Livem's '5G Unlimited 9GB+ (SKT network)' plan before discount and provides 2GB more data. Except for some MVNO providers selling plans below wholesale prices through limited promotions, SK Telecom's online plans are cheaper. Unlike previous online plans where wired and wireless bundle discounts were unavailable, SK Telecom offers discount benefits such as 'Yojeum Family Bundle,' which further lowers prices depending on bundling.

As SK Telecom strengthens its online plan benefits, a price inversion phenomenon has occurred between SK Telecom and MVNO 5G plans. Currently, MVNOs still maintain strong price competitiveness in LTE plans, which are their main products. However, considering the long-term shift of LTE subscribers to 5G, MVNOs are losing even their price competitiveness.

KT and LG Uplus are also expected to introduce similar improvements. A price inversion phenomenon could also occur in MVNO plans using KT and LG Uplus networks, which have more subscribers. This is why there are criticisms that telecom companies are effectively entering the MVNO business through online plans.

The MVNO industry interprets this as telecom companies stepping up to curb competition as the number of subscribers has recently increased and market competition has intensified. As of the end of October, MVNOs surpassed 12 million subscribers, expanding their market share to 16.3%. The long-established 5:3:2 market share structure among the three major telecom companies is shifting to 4:2:2, causing a sense of crisis. The industry is closely monitoring KT and LG Uplus's online plan revisions and the market.

An MVNO industry official said, "With the continuous increase in MVNO subscribers, the three major telecom companies cannot help but try to curb them," adding, "It will be a difficult situation."