SKT’s Ministry of Science and Technology… ‘Online-only’ 5G mid-to-low price plan approved

Input 2021.01.13 12:00

Government·SK Telecom “Reduce customer charge and expand options”
Expected to intensify rate competition by expanding business autonomy
Users in the corners of the industry have low benefits and are concerned about the high-priced phone industry

The Ministry of Science and ICT (Ministry of Science and Technology) has approved the release of the ‘5th generation mobile communication (5G)’ rate plan reported by SK Telecom (SKT).

The Ministry of Science and ICT announced on the 13th that SK Telecom will repair the’LTE/5G Untact Plan Rate Plan’ reported on the 29th of last month after the introduction of the reservation system.

The reservation report system is a system in which the government reviews and accepts or rejects the terms and conditions of market dominant business operators within 15 days so as not to hinder user interests or fair competition.

SK Telecom’s’Untact Plan’ is an online-only plan consisting of a total of 6 types, including 3 5G plans and 3 LTE plans.

According to SK Telecom, the Untact Plan was designed at a rate of about 30% lower than the previous rate, eliminating the contract and combination conditions and additional benefits of the rate plan that existed in the existing rate plan.

In detail, 5G ▲ ‘5G Untact 62’, which provides complete unlimited data use for 620,000 won per month ▲ ‘5G Untact 52’, which provides 200GB large data capacity for 520,000 won per month ▲ 5G service available for 30,000 won per month Three new types of mid- and low-priced rates, such as the ‘5G Untact 38’, have been newly established.

In the case of ‘5G Untact 52′, it is almost the same amount as using SKT’s high-capacity LTE data plan,’T Plan Essence’ (69,000 won per month, 100GB of data provided) with an optional discount. SK Telecom explains that it is possible to use a large-capacity 5G data plan at the same level as the existing LTE rates.

SK Telecom expects that the untact plan will greatly ease the burden on customers’ fees, such as LTE plans that allow users to use 100GB of data for about KRW 40,000.

However, some of the industry has pointed out that the user benefits of the 5G untact plan are not so great, and that it can put aside the affordable phone industry. This is a user-differentiated rate system because the marketing cost reduction effect through Untact does not apply to combined product users and is limited to mobile phone users.

Representatively, Rep. Kim Young-sik (the power of the people) said in a press release on the 5th, “The untact plan reported by SK Telecom is an unfavorable plan for combined product users when considering the rate plan discount rate.” He pointed out that there is a need to supplement this because there is a concern to exclude it from the market.

The low-priced phone industry is concerned about the limited competition for the mid- to low-end 5G plan, and urged the prompt wholesale provision and the application of an appropriate wholesale price. The Korea Affordable Telecommunications Operators Association announced on the 6th that “SKT’s efforts to reduce communication costs through 5G·LTE online rates are welcome, but the rate system is very concerned that it will lead to the exit of the market for affordable phone operators.”

The Ministry of Science and ICT explained, “The rate system reported by SK Telecom is for online subscribers, and we have considered the aspect of reducing the rate by reflecting the reduction in distribution costs and responding to the recent trend of non-face-to-face in society.”

In addition, the Ministry of Science and ICT said, “In order to resolve the negative impact on the affordable phone market, SK Telecom plans to reduce the wholesale price so that affordable phone operators can compete in the market.” We decided to report more in the near future.”

SK Telecom also explained that it is meaningful that the Untact Plan has strengthened customers’ choice of mobile communication service fees, taking into account the social trend that emphasizes the importance of single family members and non-face-to-face channels.

Myung-jin Han, head of SK Telecom’s marketing group, said, “It is expected that the voluntary rate competition in the industry will be in full swing due to the expansion of business operator’s autonomy following the implementation of the reservation notification system.” I plan to do it.”