The Frugal Phone Association President Taking a Stand Against Telecom Companies: "Subsidiary Telecoms Should Withdraw from the Frugal Phone Market"

At the Altteul Phone Opening Ceremony, Chairman Kim Hyeong-jin said, "We endured losses for 10 years"
"The policy should be implemented by the Ministry of Science and ICT notice, not the three major telecom companies, to operate the business with peace of mind"

On the 27th, Jang Seok-young, Vice Minister of Science and ICT (right), Yang Won-yong, Head of KB Kookmin Bank MVNO Business Division (left), and Kim Hyung-jin, Chairman of the Altteul Communication Business Association, are posing for a commemorative photo at the opening ceremony of the Altteul Phone Square event.

[Asia Economy Reporter Han Jinju] "The subsidiaries of the three major mobile carriers should reduce their market share in the MVNO sector and withdraw within three years." (Kim Hyeongjin, Chairman of the MVNO Operators Association)

The MVNO Operators Association, a group representing small and medium MVNO operators, made sharp remarks targeting the three major mobile carriers that have entered the MVNO market.

On the 27th, the 'MVNO Square,' where visitors can experience MVNO plans, sign up, and try unlocked devices, opened near Seodaemun Station on Line 5 (49 Gyo-nam-dong, Jongno-gu, Seoul). The opening ceremony was attended by Jang Seokyoung, Vice Minister of the Ministry of Science and ICT, Yang Wonyong, Head of the KB Kookmin Bank MVNO Business Unit, and representatives of small and medium MVNO companies.

Kim Hyeongjin, Chairman of the MVNO Operators Association, raised his voice demanding that the market share of the mobile network operators’ (MNO) subsidiaries be reduced and that they gradually withdraw from the market. He also emphasized the need to establish institutional measures to allow small and medium operators to have sales autonomy. As of 2019, the revenue share of MNO subsidiaries in the MVNO market reached 65%. Among MVNO subscribers, 37.4% are subscribed through MNO subsidiaries.

Chairman Kim said, "First, I ask the Ministry of Science and ICT to prepare legal and institutional measures that allow small and medium MVNO operators to autonomously implement sales policies. Second, a policy should be created to reduce the market share of MNOs, which currently hold 50% of the MVNO market share, and to have them withdraw within three years. This policy should be implemented by the Minister of Science and ICT’s official notice, not led by the three major carriers, so that we can operate our businesses with peace of mind."

Kim added, "The subsidiaries of the three major carriers have joined the MVNO market despite incurring losses of several hundred billion won, while we MVNO operators have overcome great difficulties through survival of the fittest. Especially, the M&A and mergers of the three major carriers’ wired and wireless businesses, as well as MSO acquisitions and mergers, are driving small and medium telecom and broadcasting operators to extinction. The government policy is overly biased toward the three major carriers, as they destroy the ecosystem by leveraging huge capital to achieve operating profit and cost reduction," he expressed concern.

He continued, "The participation and role of small and medium operators in 5G is urgently needed at this time. I ask that the 3.7 GHz military reserved 100 MHz band and the high-frequency band be opened for small and medium telecom operators to participate in various IoT and B2B businesses, independently from the three major carriers’ frequency usage, in connection with public Wi-Fi."

The device zone set up at the budget phone square displays the latest flagship smartphones and mid-range phones from Samsung Electronics and LG Electronics.

At the opening ceremony, Jang Seokyoung, Vice Minister of the Ministry of Science and ICT, said, "The chairman’s heartfelt remarks were very moving, and I deeply appreciate the MVNO operators’ efforts to promote competition under difficult conditions over the past 10 years."

Vice Minister Jang said, "I also use a 5G MVNO plan, and there is no inconvenience in terms of speed, and the rates are affordable. Although the number of MVNO subscribers declined for 16 months, it has recently rebounded, and I hope the public will enjoy good services at reasonable prices through MVNOs."

He added, "KB Kookmin Bank has also entered the MVNO market, playing a disruptive role in the mobile communications market and creating many changes. With the opening of MVNO Square, I expect that awareness and access opportunities for people unfamiliar with MVNOs will greatly expand."

Immediately after the event, Vice Minister Jang commented on KT Skylife’s entry into the MVNO business, saying, "I cannot make a definitive statement. We will decide based on the law and past precedents. We are also consulting with operators and will make a decision after gathering opinions."

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