Reduced '0 Won Plans', MVNO 'Switching' Also Declined for 2 Consecutive Months

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Disappearing 0-Won Plans, Only About 10 Left
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The relentless growth of budget phone services is slowing down. The number of number portings to budget phones has decreased for two consecutive months. The three major telecom companies are reducing support for budget phones and going "all-in" on the new Galaxy foldable models.

According to the July mobile number portability data released by the Korea Telecommunications Operators Association (KTOA), the number of portings to budget phones was 218,316. This is a 17.9% decrease compared to June (265,985). After peaking at 291,766 in May this year, the numbers have been declining for two consecutive months.

The reason for the slowdown in switching to budget phones is the disappearance of the "0-won plans" that had driven explosive growth. The 0-won plans are limited-time offers, such as six months, allowing free usage. At one point, there were more than 60 such plans in circulation. As of the 3rd, only 14 0-won plans offer 5GB or more per month. The three major telecom companies, which had been providing subsidies of around 200,000 won per subscriber to budget phone providers, drastically reduced these subsidies starting in June, effectively ending the price war.

The three major telecom companies, having cut benefits for budget phones, are now going "all-in" on marketing the new Galaxy foldable models, the Z Fold5 and Z Flip5. The foldable new products are performing well, with pre-orders expected to surpass one million. For pre-order customers, KT is running a promotion upgrading the storage capacity from the 256GB model to the 512GB model, doubling the storage. SKT is offering Naver Pay on a first-come, first-served basis and a travel expense event worth about 3 million won. LG Uplus is holding a prize event giving away Gucci Jordan loafers and other items.

Budget phone providers are preparing various self-help measures. Some are conducting prize events targeting users of unlocked phones, and 'Toss Mobile,' 'KCT,' and 'KG Mobile' have launched a 'CGV Plan' that gives two movie tickets every month throughout the year. However, considering that the root of budget phone popularity was affordable rates, the downward trend is expected to continue for the time being.

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