SKT Lowers 5G MVNO Wholesale Prices by up to 7.35%

[Asia Economy Reporter Joselgina] SK Telecom, which is about to launch a 5G mid-to-low priced plan that is 30% cheaper than existing plans, has decided to lower the wholesale rates it charges to MVNO operators for providing 5G mobile networks by up to 7%. As 5G price competition intensifies, it is expected that more affordable 5G plans will be introduced in the MVNO industry in the future.

According to the Ministry of Science and ICT and SK Telecom, the two parties have virtually concluded negotiations to reduce the wholesale rate ratio, which had been ongoing in connection with the revision of SK Telecom's Untact Plan terms of use (rates and usage conditions) on the 13th.

The existing revenue sharing (RS) ratio for SK Telecom's 5G plans will be changed to 63:37 for the 79,000 KRW monthly plan and 60:40 for the 55,000 KRW monthly plan. Accordingly, the rate for the 79 plan has decreased from 68% to 63%, and the rate for the 55 plan has decreased from 62% to 60%, down by 5 percentage points and 2 percentage points respectively. Based on the wholesale rates that MVNO operators must bear, this translates to a reduction of 7.35% and 3.22% respectively.

With the wholesale rates lowered, the cost burden on MVNO operators decreases. For consumers, this creates an environment where more affordable 5G MVNO plans can be expected.

Until now, the MVNO industry had expressed concerns that as SK Telecom, the leading mobile carrier, was considering a 5G mid-to-low priced plan in the 30,000 KRW range, they would inevitably lose price competitiveness, leading to a crisis of extinction. According to the Korea MVNO Association, the existing wholesale rates that MVNO operators pay to SK Telecom were about 89-96% of the corresponding plan rates, showing almost no difference.

In response, the Ministry of Science and ICT requested SK Telecom, the wholesale provider obligated by law, to lower the wholesale rates for MVNOs, and SK Telecom agreed to reduce the rates as a magnanimous measure to ease customer fee burdens. Considering the industry's previous practice of dragging out wholesale provision to MVNOs even when launching new plans, this is regarded as a meaningful step.

SK Telecom plans to provide the revised wholesale rates to the MVNO industry as soon as possible. The exact timing has not yet been finalized.

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