[Galapagos K-Communication]④ "The Problem Is Communication Fees"... 'This' That Has Caught Up to LGU+

Survey on 'Mobile Carrier Satisfaction' Among 1,000 Citizens
High Satisfaction with Budget Phones... Many Demand Lower Fees
"Customer Service Improvement" and "No LTE Neglect" Voices Also Heard

There is a saying, "You get what you pay for," but it did not apply in the mobile telecommunications market. The satisfaction rate of budget phone users with affordable plans was 86%, significantly surpassing the three major carriers. KT and LG Uplus subscribers expressed high dissatisfaction with data speeds, while SK Telecom cited expensive plans as a source of dissatisfaction.

Asia Economy commissioned the consumer data platform 'Open Survey' to conduct a 'Mobile Telecommunications Satisfaction Survey' targeting 1,000 adults on the 30th of last month.

Smartphone stock photo Photo by Mun Ho-nam munonam@

This survey revealed the significant cost-saving effect of budget phones. When asked about the current plan cost (excluding device fees and additional services), 81% of budget phone subscribers answered that it was under 30,000 KRW. Less than 10% of subscribers from the three major carriers used plans under 30,000 KRW, with the most common response being 'between 50,000 KRW and 70,000 KRW.' SK Telecom accounted for 32.6%, KT for 31.2%, and LG Uplus for 28.5% in this category.

There is another reason why the three major carriers should be concerned. When asked about satisfaction with their telecommunications service, budget phone users reported higher satisfaction than the three major carriers. 85.9% of budget phone subscribers responded that they were 'satisfied' or 'very satisfied.' This was relatively higher compared to SK Telecom (64.9%), LG Uplus (59.6%), and KT (43.5%). When asked what factors contributed to their satisfaction, an overwhelming 95.7% cited 'reasonable pricing.'

Respondents who were dissatisfied with their subscribed carrier were also asked for reasons. Among SK Telecom subscribers, 38.7% cited 'excessively high fees' as the top reason. KT subscribers most frequently answered 'slow data speeds (31.3%),' followed by 'lack of discount benefits (18.7%)' and 'excessively high fees (17.9%).' LG Uplus subscribers also expressed the highest dissatisfaction with data speeds at 28.2%, followed by 'lack of differentiated services such as membership (19.2%)' and 'lack of discount benefits (16.7%).'

When asked about their current carrier, the largest was SK Telecom (40.5%), followed by KT (23.7%), LG Uplus (19.3%), and budget phones (16.3%). Budget phones (MVNOs), which provide services by leasing networks from the three major carriers and are mainly small and medium-sized enterprises, have narrowed the gap to just 3 percentage points behind the large LG Uplus.

When asked what should be prioritized to improve subscriber satisfaction, the top answer was also 'reducing telecommunications fees (35.9%).' This was followed by 'strengthening bundled discounts and customer benefits (27.7%),' 'improving telecommunications quality (13.6%),' and 'expanding membership services such as adding partners (11.9%).' Other opinions included demands for improvements in customer service (CS), such as 'smooth communication with customers,' 'strengthening customer center responses,' and 'enhancing customer service.'

When asked about inconveniences experienced in the past year, 7 out of 10 respondents (71.7%) cited 'poor service quality,' ranking overwhelmingly first. Compared to other issues such as 'unfair inducement to subscribe to plans or additional services (20%)' and 'penalties for contract cancellation or changes (14%),' this proportion was significantly higher. The majority of mobile telecommunications subscribers still feel inconvenienced by data speed and call quality issues.

Lee Dong-kwan, Chairman of the Korea Communications Commission, is taking a commemorative photo at his first meeting with the CEOs of the three major mobile carriers held at the Government Complex Gwacheon on September 15. From left to right: Yoo Young-sang, CEO of SK Telecom; Chairman Lee; Kim Young-seop, CEO of KT; Hwang Hyun-sik, CEO of LG Uplus. 2023.9.15

The majority of budget phone subscribers (84%) were using LTE services. Among the three major carriers, about 60% reported using 5G, while around 30% still used 4G. Given the significant number of LTE users, some experts criticized carriers for focusing solely on new technologies like 5G and 6G.

Park Soon-jang, Secretary General of the Consumer Sovereignty Citizens' Council, said, "There are more than 30 million LTE users," adding, "Because carriers focus only on 5G, investment in services and facility maintenance for LTE users is quite insufficient." He emphasized, "We must not forget that budget phone and LTE users are ordinary people using low-cost plans."

Meanwhile, this survey was conducted by allocating 1,000 panelists aged 20 to 50 according to the population ratio from Statistics Korea, with a sampling error of ±2.03 percentage points at an 80% confidence level.

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