Significant Wholesale Price Drop for Alttel Phones... Will 5G Plans with 20GB for Around 10,000 Won Appear?

Government Unveils Measures to Boost MVNO Competitiveness
Wholesale Data Fees Cut by Up to 52%

The government has decided to reduce the wholesale data fees that Mobile Virtual Network Operators (MVNOs) pay to mobile carriers for network usage by up to 52%. This move opens the door for MVNOs to offer 5G plans with 20GB of data priced in the 10,000 KRW range. Additionally, the government will shift its policy regarding the selection of the fourth mobile carrier to a market demand-based approach. Essentially, it will step back from a government-led new carrier recruitment policy and switch to a registration system.

On the 15th, the Ministry of Science and ICT announced these measures to strengthen the competitiveness of MVNOs at the Government Seoul Office. The aim is to enhance consumer benefits by providing reliable communication services at low prices.

To strengthen the competitiveness of independent MVNOs, not affiliated with mobile carriers, the government has cut wholesale data fees by up to 52% (from 1.29 KRW/MB to 0.62 KRW/MB). The MVNO industry has continuously argued that to maintain competitively low-priced plans, the wholesale fees paid to SK Telecom, the designated wholesale provider, must be lowered. Especially for 5G plans, there have been strong voices that high wholesale fees prevent the creation of affordable plans comparable to LTE.

Starting in April, MVNOs will negotiate wholesale fees individually with mobile carriers. The government's significant reduction of wholesale fees this time is interpreted as setting a benchmark to enable MVNOs to create competitive plans.

The government expects that MVNOs will be able to launch their own plans in the 20 to 30GB data usage range, which is the average data consumption of mobile users. In particular, the launch of a 5G plan with 20GB priced in the 10,000 KRW range is anticipated, which is expected to greatly increase consumer benefits. Currently, the 5G plans offered by the three major mobile carriers are around 24GB for 42,000 KRW (based on SK Telecom Direct).