More Than 30% Cheaper Than Standard Plans
KT Considering Launch of March Online Plans
Government Takes Aim at Telecom Oligopoly... Diversifying Plans
[Asia Economy Reporter Oh Su-yeon] As the government takes strong measures to dismantle the telecommunications market oligopoly and reduce household communication expenses, LG Uplus has revamped its plans by launching three new online plans.
On the 22nd, LG Uplus announced the launch of three new online direct plans and the expansion of family bundling.
The newly launched plans are ▲5G Direct Plus 59 (59,000 KRW/month) ▲5G Direct Plus 69 (69,000 KRW/month) ▲LTE Direct 34.5 (34,500 KRW/month). These are fixed-rate plans that include basic voice calls and text messages, along with 300 minutes of additional calls.
The 5G Direct Plus 59 offers 15GB each for tethering and sharing data, while the 5G Direct Plus 69 provides 50GB each. For the 5G Direct Plus 69, when using a secondary device, customers can receive a discount of up to 11,000 KRW per line for up to two lines. Both plans offer unlimited data. The LTE Direct 34.5 plan provides 5GB per month as a base, and after usage, customers can continue at 1Mbps speed.
Comparable unlimited plans in the existing mobile lineup include 5G Premier Essential (85,000 KRW/month, 15GB each for tethering and sharing) and 5G Premier Plus (105,000 KRW/month, 50GB each for tethering and sharing). The new plans are 31% and 34% cheaper, respectively.
Although LG Uplus had not previously applied bundling discounts to online plans, it has expanded these benefits with the launch of the new plans. Using the "Cham Swiun Family Bundling" service, customers can combine mobile lines, internet, and even budget phone services for discounts on both wired and wireless products. Additionally, customers aged 19 to 29 who subscribe to the 5G Direct Plus plans and bundle four lines can receive a discount of up to 14,000 KRW per line. This allows them to use a 5G unlimited plan for 45,000 KRW.
KT is also positively considering launching new online plans next month. SK Telecom was the first among the three major carriers to announce an online plan restructuring in December last year, similarly lowering prices and expanding bundling discounts like LG Uplus.
Online plans are cheaper than regular plans but have had fewer subscribers because they did not qualify for bundling discounts. Telecom companies offer significant discounts when customers bundle wireless, internet, and IPTV services under one provider, but online plans were excluded. This has led to criticism that online plans are not truly affordable, as highlighted in national audits. According to the office of Yoon Doo-hyun, a member of the People Power Party, as of September last year, the number of online plan users was only 128,283 for SKT, 32,906 for KT, and 17,141 for LG Uplus.
The online plans launched by LG Uplus this time are non-contract products, so contract transfers are not possible. Considering that most customers typically sign 24-month contracts, it will be difficult for many to subscribe immediately. However, after SKT’s online plan restructuring, LG Uplus and KT, which had been silent, have changed their stance. This appears to be a signal that they are beginning to diversify plans seriously, including senior 5G plans and mid-tier 5G plans with 40 to 100GB, amid the government’s strong push to break the telecom oligopoly. President Yoon Seok-yeol ordered the preparation of special measures to dismantle the telecommunications market oligopoly and promote competition at the Emergency Economic and Livelihood Meeting on the 15th. The Ministry of Science and ICT has formed a task force (TF) to promote competition in the telecommunications market.
An LG Uplus official stated, "As we strengthen customer touchpoints for the digital transformation of telecommunications, we launched these plans to expand choices for online plans and provide rational consumption."
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