LGU+ "No Issues with Huawei... 2G Service to Be Discontinued Next Year" (Comprehensive)

[Asia Economy Reporter Koo Chae-eun] Lee Hyuk-joo, Chief Financial Officer (CFO) of LG Uplus, stated during the conference call held after the Q3 earnings announcement on the 5th, "We recognize that the Huawei issue is partially having a negative impact on the stock price," but added, "However, this is a US-China conflict issue, and even if some of it affects LG Uplus's stock price, it does not interfere with our services."

According to the CFO, Huawei accounts for about 30% of LG Uplus's 5G coverage.

He said, "The coverage has been completed, and maintenance inventory has been secured, so the services currently provided will not have any issues going forward," adding, "There may be issues with 28GHz services or 6G, but those are still distant agendas."

He announced that 2nd generation (2G) services will be terminated next year. LG Uplus stated, "We are not considering reallocation of 2G frequencies next year," and mentioned, "Considering the current subscriber decline trend and the equipment that has already aged about 20 years, it seems appropriate to withdraw with government approval when the service expires in June next year."

LG Uplus will consider launching mid-priced 5G plans. The CFO said, "We will consider it from the perspective of subscriber benefit value." However, he noted, "The mid-priced 5G plans currently launched by other companies are more about transitioning existing 5G subscribers, who account for about 20% of each company, rather than reducing prices," and added, "There will be no significant changes in terms of price competition."

Meanwhile, LG Uplus announced Q3 earnings with sales of 3.341 trillion KRW and operating profit of 251.2 billion KRW, representing growth of 5.9% and 60.6% year-on-year, respectively.

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