Toss Altteul Phone Launches with 'Cashback'... Industry Reaction: "We Need to Watch"

Second Contender in Financial Sector MVNO
"Expensive Even with Maximum Cashback"

[Asia Economy Reporter Oh Su-yeon] Toss's MVNO Toss Mobile is set to launch on the 30th. Leveraging 24 million Toss users, it is promoting cashback plans. The MVNO industry is cautiously watching the emergence of Toss Mobile. However, unlike when the first financial sector operator appeared, the atmosphere is not negative. The prevailing view is that the relatively high prices will not significantly impact the market.

Toss Mobile is officially launching its MVNO business with four plans. The new plans are ▲ Cashback 100GB (59,800 KRW) ▲ Cashback 71GB (54,800 KRW) ▲ Cashback 15GB (35,800 KRW) ▲ Data 7GB (24,800 KRW).

For the Cashback 100GB and Cashback 71GB plans, cashback benefits range from 2,000 KRW (when using less than 70GB or 40GB) to 10,000 KRW (when using less than 10GB), depending on data usage. The Cashback 15GB plan offers a 1,000 KRW cashback every month regardless of usage conditions.

Additionally, activation is possible through the Toss app, meaning that 24 million Toss subscribers can easily sign up. Operating a 24-hour customer center to address the shortcomings of existing MVNOs is another key advantage.

Toss's entry into the MVNO market is the second from the financial sector. KB Live M, which entered the MVNO business earlier, expanded its subscriber base with low-cost plans and became the industry's "common enemy." It created a cutthroat competition atmosphere with shockingly low wholesale prices, essentially engaging in self-destructive price wars.

However, the MVNO industry's view of Toss Mobile is different. While closely monitoring the new operator, the sentiment is not negative.

An MVNO industry insider said, "If they innovate the service with consumer benefits such as payback, 24-hour customer service, and accessibility, it can revitalize the market, so there is no reason to view it negatively."

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In fact, Toss Mobile's plans are more expensive compared to 5G plans from subsidiaries of the three major telecom companies that sell above wholesale prices. KT M Mobile and SK Seven Mobile's 5G 110GB plans are priced at 42,800 KRW (5G Modu Mamkkeot 110GB+) and 44,550 KRW (5G USIM), respectively, which is 15,250 to 17,000 KRW cheaper than the Cashback 100GB plan. The price gap widens further when promotions are applied.

Another MVNO industry insider explained, "Toss Mobile's prices are high, so there is no conflict with small and medium operators. Even if you get up to 10,000 KRW cashback on a 50,000 KRW plan, it still costs in the 40,000 KRW range. Existing operators offer similar data plans cheaper by applying promotions."