Assemblyman Kim Young-sik: "SKT Untact Plan... User Benefits Are Not Significant"

[Asia Economy Reporter Koo Chae-eun] Kim Young-sik, a member of the People Power Party, stated that the user benefits of SK Telecom's 5G Untact (contactless) plan reported to the government are not significant.

On the 5th, Rep. Kim Young-sik said, "Considering the discount rate of the Untact plan reported by SK Telecom, it is a disadvantageous plan for users of bundled products," and added, "(On the contrary) there is a concern that MVNOs (Mobile Virtual Network Operators) might be excluded from the mobile telecommunications market, so supplementation is necessary."

Earlier, on the 29th of last month, SK Telecom reported an 'Untact plan' to the Ministry of Science and ICT, which is about 30% cheaper compared to existing plans.

Rep. Kim explained, "Looking at SK Telecom's current mobile phone and wired internet bundled product configuration, for a three-person household, when one mobile line decreases, the discount benefit decreases by 11,000 KRW. In the case of applying a bundle discount with a 7,5000 KRW plan under a subscription discount, the benefit is 7,250 KRW per month (87,000 KRW per year) greater than the new plan."

He further stated, "Since the marketing cost reduction effect through Untact is not applied to users of bundled products but limited to users of mobile-only products, this can be seen as a discriminatory pricing plan against users."

He also added that launching the Untact plan without lowering the wholesale rates for MVNOs violates two laws: the Telecommunications Business Act and the Fair Trade Act. He said, "The reservation reporting system under the Telecommunications Business Act is intended to promote price reductions through active price competition among telecom operators, so launching a plan that goes against the purpose of the system should be avoided."

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