Ministry of Science and ICT Repairs SKT 5G Untact Plan 30% Cheaper... Launching on the 15th

[Asia Economy Reporter Seulgina Jo] The government has accepted SK Telecom's 5G mid-range and low-cost plans, which are 30% cheaper than existing plans. Regarding concerns about the encroachment on the MVNO market, SK Telecom has been instructed to lower the wholesale prices it offers so that MVNO operators can maintain competitiveness. SK Telecom plans to officially launch the plans on the 15th.

The Ministry of Science and ICT announced on the 13th that it has approved the terms and conditions (rates and usage conditions) of the LTE and 5G Untact Plan, which SK Telecom reported for the first time since the introduction of the reservation notification system at the end of last year, after review pursuant to Article 28 of the Telecommunications Business Act and Article 35 of its Enforcement Decree, as well as expert consultations.

The ‘Untact Plan’ consists of six online-only plans: three 5G plans and three LTE plans. For 5G, it offers 9GB of data for 38,000 KRW per month, 200GB for 52,000 KRW per month, and unlimited data for 62,000 KRW per month. This is approximately 30% cheaper compared to existing 5G plans.

The Ministry of Science and ICT explained the approval background, stating, "The plans reported by SK Telecom target online subscribers, reflecting the recent trend toward non-face-to-face interactions across society and incorporating cost savings from reduced distribution expenses to lower rates." Since SK Telecom’s plan notification on the 29th of last month, the ministry has been reviewing the terms and conditions of the market-dominant operator within 15 days under current law to ensure they do not harm user interests or fair competition. The deadline is the 19th of this month.

However, considering the potential negative impact of this 5G plan launch on the MVNO market, the ministry has required SK Telecom to provide wholesale prices at a reduced rate to MVNO operators. According to the Korea MVNO Association, the wholesale prices SK Telecom offers to MVNO companies are about 89-96% of the rates of these plans, showing little difference. The association argues that a gap of about 20% is necessary for MVNOs to secure competitiveness and maintain operational costs.

Additionally, the Ministry of Science and ICT has requested SK Telecom to promptly submit additional notifications regarding the mid- and low-volume tiers of the 5G plans. The ministry stated, "We hope that this approval of the terms and conditions notification will activate the launch of more diverse and affordable plans under the reservation notification system, thereby continuously expanding price competition and consumer choice."

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