In the Era of High Inflation, Telecom Companies Boost Support for Alttel Phones

KT Launches Integrated Customer Service Channel
'My Altteul Phone' Debuts as Industry First
LG Uplus Expands Subscribers with 'Plus Alpha'
1 Million New Users in Four Months
Benefits Targeting MZ Generation Pour In

[Asia Economy Reporter Lim Hye-seon] As demand for budget phones increases amid economic recession and high inflation, telecom companies have stepped up support for 'budget phones.'

KT VS LGU+ Budget Phone Competition

According to the telecommunications industry on the 30th, KT opened the integrated customer service (CS) channel 'My Budget Phone,' the first among the three major telecom companies. 'My Budget Phone' is an integrated CS channel established to enhance convenience for budget phone customers and small and medium-sized budget phone operators who find it difficult to expand customer service infrastructure. A total of 24 budget phone operators, including Pritelcom, Unicoms, M Mobile, and Skylife, participate in providing services. Customers subscribed to budget phones on the KT network can check and change services such as subscription line information inquiry, usage and fee inquiry, loss and temporary suspension, billing and payment method changes through 'My Budget Phone.'

LG Uplus introduced the joint partnership program Plus Alpha (+α) with budget phones using its own network and has begun actively expanding subscribers. Special benefits such as free data provision and replacement of old SIM cards are offered to long-term budget phone customers, and CS tasks such as subscription consultation and fee changes are supported at about 1,800 offline stores for customer convenience. To strengthen the competitiveness of small and medium budget phone businesses, consulting and artificial intelligence (AI) call centers are supported, and subscription-type partnership plans, distribution of shared SIM cards, expansion of self-activation, and supply of SIM cards at affordable prices are provided.

In the Era of High Inflation, People Flock to Budget Phones

Telecom companies are investing in the budget phone business because it is a sector maintaining growth amid the slowdown in the telecommunications business. According to the Ministry of Science and ICT, the number of budget phone subscribers is increasing every month. After surpassing 10 million last year, it increased by about 1 million in just four months this year. The number of new subscribers this year also exceeded that of the three major telecom companies (SK Telecom, KT, LG Uplus). Telecom company budget phone subsidiaries such as KT M Mobile, MediaLog, and LG HelloVision recorded sales exceeding 80 billion won last year. User satisfaction with budget phones also surpassed that of the three major telecom companies. According to the '2022 First Half Mobile Telecommunications Survey' report released by Consumer Insight, a consumer research specialist organization, the average perceived satisfaction rate of customers using budget phone operators was 65%, higher than the average of 55% for users of the three major telecom companies.

Capture the 'Rational Consumption' 2030 Generation

The 2030 generation is the core driver of growth in the budget phone market. Interest in budget phones, which emphasize price competitiveness, has increased due to the economic recession and high inflation following the pandemic. In addition, the combination of unlocked smartphones and budget phone plans, along with non-face-to-face activation, has attracted a surge in subscriptions among younger generations. According to LG Uplus, the proportion of MZ generation (Millennials + Generation Z) subscribers increased from 35% in 2019 to 42% in the first quarter of this year. Uplus budget phone shared SIM 'One Chip' has surpassed 40,000 cumulative sales since its launch in November last year.

Telecom companies are introducing various measures to capture MZ generation demand. LG Uplus also offers ESG (Environmental, Social, and Governance) plans linked to environment and blood donation. Previously, LG Uplus's Hope Windmill plan, where 10% of the monthly basic fee is automatically accumulated and donated under the customer's name, had a 50% share of the 2030 generation. KT's budget phone subsidiary KT M Mobile launched a subscription-type plan. The number of subscribers to KT M Mobile's subscription plan has exceeded 80,000, with 84% in their 20s to 40s.

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