The Ministry of Science and ICT is expanding device and rate plan options to ease the burden of telecommunications costs. This will allow users to subscribe to LTE plans with 5G devices, and vice versa. Furthermore, following KT, mid- to low-priced devices priced between 300,000 and 800,000 won are scheduled to be released by the first half of 2024.

The Ministry of Science and ICT has released follow-up measures to the 'Measures to Promote Competition in the Telecommunications Market' announced last July. We have been continuously discussing with telecommunications companies and terminal manufacturers ways to expand telecommunications rate plans and terminal selection, and after discussions at the Joint Emergency Economic Ministers' Meeting of relevant ministries, we announced a 'Measure to Alleviate the Burden of Telecommunications Costs.'

The government said, “Through this plan, we plan to expand the people’s choice of rate plans and terminals, improve areas that have been unreasonable restrictions on users, improve the monopoly structure of the telecommunications market, and promote competition across rates, marketing, and quality.”

■ Improvement of subscription restrictions and reorganization of 5G rate plans

First of all, starting in late November, there will be no more mandatory restrictions on users signing up for specific rate plans.

Until now, the three major mobile carriers had restricted 5G smartphones to only 5G plans. While they have improved the system to allow LTE plans for prepaid 5G devices, they still enforced 5G-only plans for 5G devices purchased through carrier agencies (carrier-specific devices).

Through this improvement plan, the three mobile carriers will revise their terms of use to allow 5G users to subscribe to LTE plans, and vice versa. SKT is currently preparing to revise the relevant terms of use and develop a computer system. They plan to finalize discussions with other carriers to ensure their implementation is swift and gradual.

Through this, 5G terminal users can subscribe to low-cost LTE rate plans, and LTE terminal users can also choose 5G rate plans that are relatively advantageous when using large amounts of data.

Additionally, a new 5G rate plan in the 30,000 won range will be introduced starting in the first quarter of next year. The lowest 5G rate for the three major mobile carriers, currently in the mid-to-late 40,000 won range, will be lowered to the 30,000 won range, and the data provided for small-scale 5G rate plans of 30 GB or less will be subdivided.

■ Discussions on launching domestic low- to mid-priced terminals
Starting in the first quarter of 2024, options for low-cost 5G plans and mid- to low-priced device combinations will expand. New youth 5G plans, designed in consultation with telecommunications companies, will offer up to twice the data allowance of standard plans and enhanced benefits, even in the low-cost (30,000-40,000 won to small-capacity (30 GB or less) segments.

In addition, we plan to negotiate to ensure that the newly introduced low-cost 5G rate plan can be offered wholesale as soon as possible, and to encourage the launch of even cheaper 5G rate plans on budget phones.

The Ministry of Science and ICT is discussing ways to diversify low- to mid-priced terminals with domestic manufacturers and plans to release two types of low- to mid-priced terminals within the year and three to four types in the first half of 2024, priced between 300,000 and 800,000 won.

As part of this, KT exclusively launched Samsung Electronics' 'Galaxy Jump 3' on the 10th. The mid-to-low-priced 5G smartphone 'Galaxy Jump 3' provides △6.6-inch large-screen FHD+ 120Hz display △50-megapixel rear triple camera, 13-megapixel front camera △5,000mAh large-capacity battery △25W charging, etc. The terminal comes in two colors, 'black' and 'white', and the factory price is 438,900 won (VAT included).

In particular, Samsung Electronics stated, “The Galaxy Jump 3 is optimized for high-capacity games and video playback, as it uses the Snapdragon 8 series (SM8350), a chipset found in flagship devices.” Additionally, KT is offering various benefits to customers who purchase the Galaxy Jump 3, including a 50% discount coupon for the Galaxy Buds FE (White).

The optional contract discount system is a system that provides a corresponding discount on communication fees (25%) to users who do not receive terminal subsidies, and is currently used by approximately 26 million people (as of June 2023).

This feature, which will allow users to automatically renew their current two-year contracts in one-year increments upon request, will be introduced within the first quarter of 2024. This will allow users to maintain the 25% discount compared to two-year contracts, while reducing the penalty for early termination by half.

Additionally, to ensure that users do not forget to receive the discount benefits, the contract expiration notification text messages currently being sent four times will include a renewal application URL, making it easier for users to apply for renewal.

■ Support for the rapid entry of new businesses

Ultimately, the Ministry of Science and ICT will strengthen support for the entry of new telecommunications operators to invigorate competition in rates, marketing, and quality in the telecommunications market. Currently, applications for 28GHz frequency allocation exclusively for new operators are being accepted. To encourage the entry of new telecommunications operators, the frequency allocation conditions will be recalculated to match the current time frame so as not to hinder market entry, and regional allocation (7 regions) will also be permitted.

To ensure smooth service provision in the early stages of new business entry, we plan to expand access to essential facilities for new businesses. We will also pursue institutional improvements to allow new businesses to jointly use third-party networks (roaming) during the network construction process. We will also provide tax deductions and other support to ease the investment burden in the early stages of business.

In order to foster low-cost mobile carriers as real competitors, we plan to eliminate market uncertainty by making the wholesale provision obligation system permanent (sunset in September 2022), expand discounts for bulk data pre-purchases, and limit the market share of subsidiaries of the three major mobile carriers.

Minister of Science and ICT Lee Jong-ho said, “We will strive to ensure that the burden of telecommunications costs on the public is substantially reduced through this telecommunications cost relief measure,” and added, “Furthermore, we will improve the oligopoly in the telecommunications market by fostering new telecommunications service providers and low-cost mobile phone service providers, and we will also revitalize fundamental competition in rates, services, and facilities.”