LGU+ to Gradually Expand 'Unmanned Mobile Phone Activation' Like Bank ATMs (Comprehensive)

Mobile Phone 'Self-Activation' Kiosks Gradually Expanding
To Be Introduced at Experience Stores in September
LG Uplus Announces Non-Face-to-Face and Untact Distribution Innovation Plan

[Asia Economy Reporter Koo Chae-eun] Communication stores where customers can activate mobile phones using unmanned terminals (kiosks) instead of staff are gradually increasing.

On the 30th, LG Uplus held a press conference at its headquarters in Yongsan-gu, Seoul, announcing the "Untact and Digital Channel Innovation Plan" containing this content. This measure aims to expand customer touchpoints as mobile phone sales through face-to-face services have decreased due to the prolonged COVID-19 pandemic. Park Joon-dong, Head of LG Uplus Strategic Channel Group (Executive Director), stated, "The kiosk is like an ATM in a bank. We will gradually expand it while considering coexistence with agencies and observing consumer responses."

Mobile Phones Also 'Self-Activation'

LG Uplus plans to introduce kiosks at experience stores in September this year. Using the kiosk, customers insert their credit card into the unmanned terminal and enter their password for identity verification. Then, they select the desired plan and make a payment, after which a USIM chip is dispensed from the kiosk. The activation is completed once the customer replaces the USIM chip. Customers can also perform relatively simple tasks themselves, such as changing plans or checking and paying bills at the kiosk. The unmanned terminal also offers a video consultation function with an artificial intelligence (AI) chatbot.

Coexistence plans with MVNOs are also underway. Executive Director Park explained, "The kiosk basically functions for both MNO and MVNO, and MVNO activation will be available in the second half of this year or early next year." Nam Guk-hyun, Head of LG Uplus Digital Channel New Business Promotion Team, said, "The U+ kiosk does not have special storage space and operates connected to the cloud. We maintain maximum security by immediately destroying personal information after use. We plan to upgrade based on data from kiosk usage patterns in the future." He added, "Although only one kiosk will operate in September, about 50 units will be deployed by the end of the year."

Additionally, LG Uplus will introduce "live shopping," the first in the telecommunications industry, where products are sold while responding to customer inquiries like TV home shopping. When purchasing a smartphone on the official online mall U+Shop, a consultant visits the customer's desired place and time on the same day to activate the phone. To expand the base of online subscribers, a "U+Shop exclusive partnership pack" has also been introduced. Discount coupons usable at Gmarket, Market Kurly, Auction, KakaoT, GS25, etc., will be provided monthly for one year, ranging from 6,000 KRW to 15,000 KRW depending on the plan.

Distribution Innovation Driven by COVID-19 and MZ Generation

This distribution strategy change by LG Uplus is a response to the market stagnation caused by COVID-19. According to the Korea Telecommunications Operators Association (KTOA), the number of mobile number portings last month was 474,405, down by 18,613 from the previous month. SK Telecom saw a net loss of 3,909 subscribers, KT lost 861, and LG Uplus lost 368. The number of portings is an indicator of telecommunications market vitality. The decrease is due to people refraining from going out and avoiding face-to-face activities during COVID-19, significantly reducing visits to stores to purchase mobile phones. Accordingly, LG Uplus plans to turn this crisis into an opportunity by expanding untact services and providing distribution services suited to changed consumer patterns.

Kim Nam-soo, Executive Director of LG Uplus Digital Business, said, "There is a clear trend of increasing non-face-to-face consumption patterns, especially among the MZ (Millennial and Z) generations," adding, "We will grow the proportion of total online sales by more than three times compared to the current level."

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