Ruling Party "Nonsensical Mid-Tier Pricing" vs Telecom Industry "Must Protect Autonomy"

Minister Lee Jong-ho of the Ministry of Science and ICT is attending the CEO meeting of the three major telecommunications companies held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on the afternoon of the 11th, and is taking a commemorative photo. From the left, Yoo Young-sang, CEO of SK Telecom; Lee Jong-ho, Minister of Science and ICT; Koo Hyun-mo, CEO of KT; Hwang Hyun-sik, CEO of LG Uplus. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Lim Hye-seon] As the three major mobile carriers introduce '5G mid-tier plans,' the ruling party People Power Party has decided to review the related charges. There are concerns that the 5G mid-tier plan, based on a monthly data usage of 24GB, could lead consumers to opt for more expensive plans. Some voices argue that this represents excessive parliamentary intervention in the private sector of telecommunications fees.

Kwon Seong-dong, Acting Leader and Floor Leader of the People Power Party, stated after the party's floor strategy meeting at the National Assembly on the 12th, "Minister Lee Jong-ho of the Ministry of Science and ICT and the representatives of the three mobile carriers agreed to restructure telecom charges and announced plans to create a plan offering 24GB of data. We will carefully review whether the agreement is appropriate." Earlier, SK Telecom reportedly submitted a notification to the Ministry of Science and ICT to launch a plan providing 24GB of monthly data for 59,000 KRW per month.

On the same day, Yoon Doo-hyun, a member of the People Power Party, criticized, "The average monthly data usage of 5G service subscribers is 27GB, so if a 24GB mid-tier plan is launched, people will inevitably have to choose more expensive plans." He added, "Most consumers subscribe to plans with over 100GB but do not fully use them," and said, "We will monitor and correct the approval of flawed pricing structures to prevent consumers from paying unfairly high fees."

He further emphasized, "If mobile carriers truly consider consumers properly, it would be appropriate to set the monthly usage around 30GB."

In this regard, the telecommunications industry is feeling uneasy. An industry official pointed out, "Direct intervention in pricing infringes on the autonomy of private businesses." According to the Ministry of Science and ICT, consumers' average monthly data usage ranges from 23 to 27GB. Excluding the top 5% of heavy users, the usage is about 14 to 21GB. The industry’s position is that the mid-tier plan configuration is not unreasonable, as it was derived through continuous unofficial discussions between carriers and the government before the notification.

Moreover, amid global inflation, telecom operators in the US, Europe, and Japan are raising prices. According to Bloomberg, US carriers AT&T and Verizon increased wireless service prices in May. Telecom companies in the UK and the Netherlands also raised their charges this year. An industry official explained, "Carriers overseas in the US, Europe, and Japan are implementing price hikes," adding, "We are looking into offering not only mid-tier plans but also various plans to enhance customer choice and convenience."

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