The three mobile carriers each announced what they call "20,000-won range plans." The move follows the government's push for a revamp to curb inflation and guarantee basic communications access. The low-cost plans now include a default data safety option (QoS), allowing users to continue using data for free at 400 Kbps even after exhausting their monthly data. But some users say they are disadvantaged because "bundled discounts" that offer savings by combining internet and TV fees and family mobile plans under the same carrier were revised unfavorably.
◇ 5G and LTE integrated, QoS applied across the board
According to the telecom industry on the 11th, SK Telecom, KT and LG Uplus announced a billing revamp that integrates their 5G (fifth-generation mobile network) and LTE (fourth-generation mobile network) plans and adds new plans in the 20,000-won range. SK Telecom and KT will introduce the new plans in early next month. LG Uplus began implementation this month.
A common thread is that plans previously split into 5G and LTE are being combined into a single, simpler lineup, and QoS that allows unlimited data use even after basic data is used up is being applied uniformly. KT reduced its 105 existing plans to 18, LG Uplus from 53 to 18, and SK Telecom from 67 to 16. Existing plan subscribers can keep their plans even after new sign-ups are halted. QoS also applies to existing plan subscribers, and those who had been paying for this option (5,500 won) will have the charge automatically waived.
A 400 Kbps speed allows use of the KakaoTalk messenger but is the bare minimum that makes watching videos difficult. Still, compared with data being cut off after basic allocation is used or unexpected extra charges being added, it reduces the burden of phone bills. That is because it effectively offers a paid add-on service for free. The 20,000-won range plans from the three carriers are: ▲ SK Telecom's New T-kiri Custom (27,830 won for 250 MB) ▲ KT's Basic 600 MB (28,900 won) ▲ LG Uplus' Data Plan 300 MB (28,000 won), with KT offering the largest basic data among the three.
◇ Little savings unless you pick the low-cost plans, and bundled discounts restricted
Analysts say the savings are limited unless you choose the low-cost plans. The national average monthly data use is about 20 to 30 gigabytes (GB), and average monthly communications expenditure is in the 50,000-won range, where the revamp yields little reduction. QoS was already offered in this tier, and many flagship 5G plans at each carrier simply had their names changed to new plan names without changes to conditions.
For example, SK Telecom's new plan "Light 59 (59,000 won)" offers 24 GB of basic data and QoS up to 1 Mbps, the same conditions as the existing "Basic Plus (59,000 won)." KT's new "Basic 21 GB (58,000 won)" offers 21 GB and QoS up to 1 Mbps, the same as the existing "5G Slim 21 GB (58,000 won)." LG Uplus' new "Data Plan 24 GB (59,000 won)" likewise matches the conditions of the existing "5G Basic Plus (59,000 won)."
There are also complaints that users have been put at a disadvantage by the revamp. SK Telecom will stop new sign-ups in August for "T-kiri Whole Family Discount," which discounted mobile fees based on a family's total years of subscription. It is SK Telecom's representative bundle that gives all members 30% off their monthly plan if the family's combined years of mobile and internet subscriptions are 30 years or more.
LG Uplus has barred users of new low-cost plans—▲ Data Plan 300 MB (28,000 won) ▲ Data Plan 750 MB (29,000 won) ▲ Data Plan 1.5 GB (33,000 won)—from all of its bundled discount products. Under LG Uplus' existing "LTE Data 33 (33,000 won)" plan, users could get 2,200 won off per person when two people bundled, and 4,400 won per person when four people bundled through "Very Easy Family Bundle."
On social media and online communities, some responded, "Even existing subscribers may lose SK Telecom's Whole Family Discount if a family member ports out or dies (reducing total years of subscription)," and said, "It's disappointing to halt new enrollments unilaterally without countermeasures." Others said, "I tried to switch my mother's LG Uplus plan to a new low-cost plan but was told we can't enroll in bundled products," adding, "The government and the three carriers introduced integrated plans and created low-cost plans to cut household communications bills, but outright blocking bundled enrollments is a backdoor price increase that runs counter to the government's intent to reduce bills."
An SK Telecom official said, "We expanded 'Nowadays Family Bundle,' which previously required internet to be bundled, so it can be joined with mobile-to-mobile bundling alone," adding, "We lowered the entry barrier so more subscribers can enjoy bundled discount benefits."