KT, Defeated by LGU+: "IoT Line Lowest Price Bidding" Sparks Tension

3Q Lines: KT 17.73 Million... LGU+ 18.29 Million
KT "We Don't Operate Like LGU+"

LG Uplus, the perennial third-place player in the telecommunications industry, has surpassed KT in the number of mobile network operator (MNO) lines for the first time ever. KT responded by saying that the increase was due to low-cost Internet of Things (IoT) lines and engaged in a war of words, stating, "We do not conduct business by acquiring millions of lines at once with fees less than 1,000 won."

On the 7th, the number of mobile communication lines for the third quarter of this year, excluding mobile virtual network operators (MVNOs), was disclosed by KT and LG Uplus, showing KT with 17.735 million lines and LG Uplus with 18.292 million lines.

[Image source=Yonhap News]

This increase is attributed to the growth in IoT lines. The number of mobile communication lines includes not only general mobile phone lines but also vehicle lines and remote monitoring lines for facility surveillance and meter reading. Yeom Myeong-hee, LG Uplus Chief Financial Officer (CFO), stated during the third-quarter earnings conference call, "In the wireless sector, the number of subscribers increased by 22.3% year-on-year due to the rise in IoT subscribers such as connected cars."

KT emphasized that this was the result of an increase in low-cost IoT lines and stressed that the quality of subscribers is more important than the simple number of lines. Park Hyo-il, Head of KT Customer Experience Innovation Division, said during the third-quarter earnings conference call, "KT does not conduct business by acquiring millions of lines at once with fees less than 1,000 won per month through lowest-price bidding in IoT remote monitoring," adding, "The competitor's lines have increased sharply only in IoT, specifically in remote monitoring, not among general users."

Park also stated, "KT does not pursue businesses unrelated to profitability, business scalability, technological innovation, or ecosystem creation," and added, "We maintain differences from competitors in core mobile communication subscriber lines, wearable and second devices, and promote competition through customer value. Qualitative indicators such as 5G penetration rate and average revenue per user (ARPU) per subscriber maintain an advantage over competitors." As of the third quarter, the 5G penetration rate is 70% for KT and 62% for LG Uplus. When considering only mobile phone lines, the ranking between the two companies remains unchanged. As of the third quarter, KT has 13.59 million subscribers, while LG Uplus has 11.01 million.

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