Frozen 5G Budget Phones... Only 40 Subscribers in January

[Asia Economy Reporter Joselgina] In January alone, the number of MVNO (Mobile Virtual Network Operator) subscribers using the 5G network amounted to only 40. Despite hopes for a revival triggered by 5G, the sector continues to struggle.

According to the Ministry of Science and ICT's 'Wireless Communication Service Subscription Line Statistics' on the 2nd, the cumulative number of 5G MVNO subscribers as of January was 227. This marks a sharp slowdown in growth compared to December last year, when mobile carriers first began providing 5G networks to MVNOs, with 187 subscribers, followed by only 40 in January.

The proportion of 5G MVNO subscribers among all MVNO subscribers was a mere 0.0029% as of the end of January. Compared to the total 5G subscribers including the three major carriers, it accounts for 0.0045%. In January, the three major carriers added 290,285 5G subscribers, bringing the total to 4,958,439. By carrier, SK Telecom added 131,284, KT 87,852, and LG Uplus 71,209 subscribers.

The MVNO industry, which had hoped for a turnaround with the successive launch of 5G MVNO plans, is disappointed with the underwhelming results. The number of MVNO subscribers, which was around 8 million a year ago, dropped to the 7 million range starting from September last year. As of the end of January, the subscriber count was 7,672,774, down 3.52% year-on-year and 1.56% month-on-month.

The relatively high price of 5G devices is cited as the primary reason for the sluggish 5G MVNO market. An industry insider pointed out, "Most MVNO users want to reduce their communication costs, but 5G smartphones are still too expensive," adding, "There are also not many used phones available." Without the introduction of mid-range 5G smartphones and reductions in wholesale prices, it will be difficult for the 5G MVNO market to fully take off.

However, there is speculation that the number of subscribers will increase significantly in the future as LG Uplus has opened the competition for mid-range 5G MVNOs earlier than expected. Following LG Uplus's reduction of wholesale network prices, eight MVNO companies using LG Uplus's 5G network launched 5G plans starting at around 30,000 KRW in February. An industry insider predicted, "Soon, SK Telecom and others will also lower wholesale prices for MVNO operators using their networks."

This content was produced with the assistance of AI translation services.