5G Budget Phones Get Cheaper... Numerous Plans Starting from Just 4,950 Won

[Asia Economy Reporter Seulgina Jo] Domestic MVNO operators are set to launch a large number of 5G plans starting from as low as 4,950 KRW per month. In particular, they will independently introduce plans in the small to medium data ranges, such as 30GB for around 40,000 KRW and 12GB for around 30,000 KRW.

The Ministry of Science and ICT announced on the 1st that MVNO operators will release various plans in the 5G market as well. Ten domestic MVNO operators plan to introduce their own 5G plans offering 1.5GB to 30GB of 5G data priced between 4,950 KRW and 44,000 KRW per month from this month through next month.

The 5G plan priced at 4,950 KRW per month provides 50 minutes of voice calls, 50 text messages, and 1.5GB of data. The 5G plan supporting 300 minutes of voice calls, 100 text messages, and 12GB of data will be launched by each company at prices ranging from 31,500 KRW to 35,400 KRW. Typically, the three major carriers offer a comparable plan at 55,000 KRW (37,000 KRW for online no-contract plans). The 5G plan offering 300 minutes of voice calls, 100 text messages, and 30GB of data is priced between 39,000 KRW and 44,000 KRW. This data range is not provided by the major carriers.

This is the first time MVNO operators have independently designed plans in the 5G market. Kim Nam-cheol, head of the Telecommunications Competition Policy Division at the Ministry of Science and ICT, who attended the briefing, explained, "To revitalize MVNOs, we have continuously lowered wholesale prices and designated 5G as a mandatory wholesale service in January, creating an environment where MVNO operators can independently design mid-to-low priced 5G plans."

MVNO operators affiliated with major carriers plan to launch these plans from July, 3 to 4 months later, in the spirit of mutual growth with smaller operators.

From the second quarter of this year, wholesale provision of 5G plans to MVNOs will expand and wholesale prices will be reduced, further strengthening the price competitiveness of MVNOs.

The Ministry of Science and ICT has mandated that major carriers provide new wholesale plans for the 12GB to 150GB range to MVNOs within the second quarter. Additionally, wholesale prices are set at 63% or less, allowing MVNOs to launch plans approximately 30% cheaper than those of major carriers. Consequently, a 150GB+5Mbps 5G plan through an MVNO will be available at around 48,400 KRW, cheaper than the 75,000 KRW offered by major carriers.

Furthermore, the Ministry supports the competitiveness of small and medium MVNO operators through the renewal of the ‘MVNO Revitalization’ conditions imposed during LG Uplus’s acquisition of CJ Hello in 2019.

First, when MVNO operators create their own plans, the data pre-purchase system will be subdivided to apply discounts on wholesale prices if a certain amount of data is purchased in advance. This allows small operators with low data usage or data-only IoT operators to receive discounts.

Additionally, support for sales and promotional expenses will be provided to small operators so they can reduce cost burdens and secure room for price reductions or marketing efforts. Lastly, the discount benefits of the ‘MVNO Exclusive Discount Card,’ launched last year in partnership with Kookmin Card, will be expanded, and exclusive cards will also be introduced by companies such as Lotte Card.

The Ministry of Science and ICT views this as the time when MVNO operators will actively enter the competition by offering diverse and affordable plans in the 5G market. Especially when combined with recently released mid-to-low priced 5G devices and MVNO plans, it is expected to reduce the communication cost burden on users’ household budgets.

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