SK Telecom set high prices at the launch of its 5G (fifth-generation mobile communications) service, leading to a significant increase in household communication costs as it encouraged LTE (fourth-generation mobile communications) users to switch. There are also allegations that SK Telecom had no plans to invest in 5G, which is 20 times faster than LTE, contrary to what was initially communicated to subscribers.
The People's Solidarity for Participatory Democracy filed a lawsuit demanding the Ministry of Science and ICT disclose documents related to the cost calculation standards for 5G, which SK Telecom submitted as the basis for fee calculations during its 5G licensing application in 2019. These documents included projections for the number of 5G subscribers over the next three years, expected traffic growth, projected subscription rates for each plan, and an estimate of average revenue per user (ARPU). After prevailing in the Supreme Court last year, the organization secured 40 out of 54 detailed pieces of information.
On the morning of the 6th, the People's Solidarity for Participatory Democracy held a press conference at its office in Jung-gu, Seoul, to announce the results of its initial analysis of 5G cost data. Han Beom-seok, a lawyer for the organization, stated, "SK Telecom explained that the burden of 5G communication costs increased by only 2,011 won (about 2.7%) compared to the high-priced LTE plan priced at 73,839 won. However, the average ARPU for all LTE plans was 50,784 won (as of January 2019), revealing that the 5G plan (monthly 75,850 won) is actually 25,066 won (approximately 49.4%) more expensive."
A lawyer noted, "SK Telecom set high prices ranging from 70,000 to 110,000 won for the 5G service, claiming it was a promotional product for heavy users and early adopters." He continued, "Subsequently, SK Telecom continued its 5G marketing, which is 20 times faster than LTE, while exclusively launching the latest devices for 5G and incentivizing consumer switching with various subsidies and illegal financial support."
The People's Solidarity for Participatory Democracy claimed that SK Telecom initially had no plans to implement 5G that is 20 times faster than LTE. A lawyer stated, "SK Telecom invested 2.915 trillion won in 5G over three years starting in 2019, using 90% of this investment for building a 3.5 GHz frequency network, which is only four times faster than LTE." He added, "This indicates that SK Telecom never intended to invest in the crucial 28 GHz frequency, necessary for implementing 5G that is 20 times faster than LTE."
The lawyer further explained, "Even the 3.5 GHz network has numerous shadow areas in urban centers, and there are places, such as rural towns and island areas, where installations have not even taken place." The Korean Consumer Agency suggested compensating consumers up to 350,000 won each, but SK Telecom did not respond.
The lawyer stated, "SK Telecom and the Ministry of Science and ICT must take responsibility for the fact that nearly half of the 5G subscribers have been harmed. They should lower the LTE service fees, which have generated more than 20 trillion won in profits even after fully recovering the base station investment costs, by half, and further expand the data provision in the low-cost tiers of the 5G service."
A representative from SK Telecom rebutted, "The claim by the People's Solidarity for Participatory Democracy that the burden of communication costs has increased due to the introduction of 5G is inaccurate. In fact, household communication costs have stabilized downwards since the introduction of 5G, and the average data usage has increased more than twofold, indicating that user communication benefits have actually increased."