SKT “Use of 5G for 30,000 won per month”… Sparking competition to cut communication costs

‘Providing 5G (5G) unlimited data for 68,000 won per month’ (SK Telecom),’Unlimited 5G for 30,000 won per month with 5 friends’ (LG Uplus) -.

With the release of new plans one after another in the new year, competition for 5G plans is intensifying. SK Telecom announced on the 13th that it plans to launch a new rate plan called’Untact Plan’ on the 15th in order to reduce the cost burden on customers and expand the rate plan options.

SK Telecom’s online-only plan launched on the 15th.

The untact plan plan consists of 6 types, including 3 5G plans and 3 LTE plans. Online-only, you can sign up at SK Telecom’s official online mall. The online-only plan is a method of purchasing a terminal at SK Telecom’s online mall, manufacturer’s online mall or large distribution store, and then purchasing a USIM through online and opening it. Since it does not go through distribution stores such as agencies and stores, it is possible to reduce intermediate distribution costs, and the advantage is that the rates are low. However, it is important to note that because it is an uncontracted product, you cannot receive an optional contract discount (25% discount on the monthly fee) and you cannot receive a combined discount.

The new plan is designed to be about 30% lower than the existing plan. Among the 5G plan, the establishment of a 30,000 won section of the plan and unlimited data provision of the 60,000 won stand out. The price of a product that provides 9GB of data per month (speed limited to 1Mbps when exhausted) is 38,000 won. A product offering 200GB (5Mbps when exhausted) costs 52,000 won, and a product offering completely unlimited data costs 62,000 won. LTE has also expanded its options by configuring a plan that can use 100GB of large-capacity data for around 40,000 won.

This is the first rate plan reported by SK Telecom after the reservation system was introduced on December 10 last year. Until now, SK Telecom, the number one operator, was able to launch a new rate plan only after obtaining government approval. However, with the introduction of the reservation report system, it is possible to launch a rate plan if it is not returned within 15 days of the report. As a result, it has become possible to simultaneously compete for rates, freeing from the industry practice that 2nd and 3rd place operators similarly followed the rate plan approved by the No. 1 operator.

Before and after the introduction of the actual reservation reporting system, KT and LG U+ launched a differentiated rate plan in the mid-to-low price segment. In October of last year, KT launched two plans, including a product offering 5GB for 45,000 won (3,3750 for an optional contract) per month. On the 5th, LG Uplus also launched two new plans, including a product offering 46,000 won (6GB). On the 10th, LG U+ added’U+ Together’, a combined service for 5G, LTE, and Internet charges. Regardless of 5GㆍLTE, if up to 5 family members and acquaintances are combined, the discount amount increases as the number of people increases. For example, subscribers of the 5G unlimited plan (85,000 won per month) combined with 4 people will be able to use unlimited 5G data for 38,500 won per month using various combined discounts and optional contract discounts.

On the 10th, LG Uplus launched’U+ Together’, a service that combines 5G, LTE, and Internet rates. [사진 LG유플러스]

With the launch of SK Telecom’s Untact Plan, a change is also expected in the online-only plan, which has been criticized for being “conceived”. Until now, KT and LG U+ have been operating an online plan, but there are pointed out that the product type is insufficient and that the price is not cheap compared to the case of receiving an optional discount on a mobile operator. The industry is predicting that SK Telecom’s launch of six types of online plans will promote competition among mobile carriers in online-only plan products.

While it is positive that the rate competition is intensifying with the launch of SK Telecom’s new rate plan, there are voices of concern that the competitiveness of affordable phones may be lost. In response, Nam-cheol Kim, head of the Communications Competition Policy Division of the Ministry of Science and ICT, said, “SK Telecom plans to lower the wholesale price to relieve the negative impact on the low-cost phone market due to the launch of SK Telecom’s new rate plan.”

Reporter Kim Kyung-jin [email protected]