KT will stop adding new lines to the "custom bundle" (hereinafter old bundle), which can cut basic mobile rates by up to 50%, on the 31st of this month.
According to the industry on the 1st, KT recently sent a notice with this information to sales outlets and others. A bundle discount means getting a discount by grouping together the mobile and internet bills of family members who use the same carrier.
KT's old bundle is known as the most beneficial of KT's bundle discounts. Up to five lines can be bundled, and when five lines are bundled, LTE and 3G plans get up to 50% off the basic rate, and 5G plans get up to 30% off the basic rate. New enrollments were halted in 2010, but after a flood of customer complaints that "KT eliminated a superior discount program without notice," the company temporarily allowed re-enrollment in 2015–2016.
Previously, when a subscriber got married and the household grew, or when buying a first smartphone for a child, they would bundle those lines to get a discount, but if new line additions are blocked, no other lines can be added. A KT official said, "We partially changed the terms of an old bundle product for which new enrollments were halted in 2010," adding, "KT runs several bundle products, including Premium Family Bundle."
Starting today, in the integrated plans being launched, KT set the old bundle's maximum discount at 30%. An integrated plan means combining into one the pricing systems that had been split into 5G (fifth-generation mobile) and LTE (fourth-generation mobile). Previously, plans were divided into 5G and LTE, but under the integrated plan, users can access both 5G and LTE within the range supported by their device. The integrated plan was prepared after the government and the three telecom companies issued a "joint declaration to guarantee basic communication rights" in Apr., and with the launch of the integrated plan, new enrollments in existing 5G and LTE plans were halted.
KT's position is that because the integrated plan can use the 5G network, it set the custom bundle discount at 30% to match the previous 5G plan, but some argue that "setting the integrated plan's discount at 30% while blocking new enrollments in LTE plans is a benefit reduction." For example, a user who changed devices this year under a "maintain a high-priced plan for six months" contract will have to move to the integrated plan even if trying to switch to an LTE plan after the contract ends, and the discount will inevitably drop from 50% to 30%.
Carriers are moving to reduce bundle discount benefits. Earlier, SK Telecom announced it will stop new enrollments in "T Family Discount" starting in Aug. The T Family Discount is SK Telecom's flagship bundle product that discounts the monthly plan fee by up to 30% per month.