'011 Era' Comes to an End... Government Decides to Terminate SK Telecom 2G Service (Comprehensive)

Lee Tae-hee, Director of Policy at the Ministry of Science and ICT, announced on the 12th at the Government Seoul Office that the Ministry will approve SK Telecom's partial application to discontinue the '2G service' mobile phones starting with 011 or 017, imposing user protection conditions.
[Photo by Yonhap News]

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[Asia Economy Reporter Josl Gina] SK Telecom's 2G mobile communication service, represented by '011,' will disappear into history after 25 years. The service will be discontinued early, one year ahead of the scheduled frequency usage termination in June next year. After two rejections, the government approved the discontinuation and allowed existing subscribers who wish to keep numbers such as 011 and 017 to maintain their numbers through number portability or number display services until June 2021.

The Ministry of Science and ICT held a briefing at the Government Seoul Office on the 12th and announced that it approved SK Telecom's partial discontinuation application for the period telecommunications business with conditions to protect users. As of June 1, SK Telecom's 2G service users account for about 384,000, which is 1.21% of the total subscribers.

◆Conditional approval after two rejections: "Network operation is difficult and quality is deteriorating" = SK Telecom's 2G service is ending after 25 years. It is the second among the three major carriers after KT in 2012. Lee Tae-hee, Director of the Network Policy Office at the Ministry of Science and ICT, explained, "Since some network recovery is impossible and service quality is deteriorating, considering user safety, it is no longer appropriate to operate the 2G network from the perspective of user protection."

The Ministry of Science and ICT, along with technical expert groups and equipment manufacturers, conducted four on-site inspections of nationwide exchange offices, base stations, and optical repeaters related to 2G network operations. The inspections confirmed that due to network aging, there has been a sharp increase in failures and a shortage of some spare parts, making it difficult to continue operating the 2G network. Over the past three years, failures in exchanges and base stations/repeaters have increased by 132% and 139%, respectively.

SK Telecom will separately announce the exact termination date of the 2G service in the future. In the case of KT, which ended the service earlier, it took about four months after government approval.

SK Telecom announced its plan to end the 2G service in February last year and applied for discontinuation to the Ministry of Science and ICT in November of the same year. However, the ministry rejected the application twice, citing subscriber numbers and requested improvements to the user protection plan.

Although SK Telecom's remaining subscriber count did not fall within 1% of the total subscribers like KT, the Ministry of Science and ICT made the discontinuation decision based on the user protection plan. Director Lee said, "The 1% criterion does not exist worldwide. It is about whether the service can be stably maintained. If the user protection plan is well established, approval can be granted as a legal standard."

However, user opposition is expected to continue. Some civic groups are reportedly preparing related lawsuits. Among the remaining 384,000 subscribers, about 24,000 have had no voice, text, or outgoing calls for over a year. Approximately 90,000 remaining subscribers use the service only through call forwarding.

Following KT, SK Telecom's 2G service will also end, leaving LG Uplus as the only domestic carrier operating 2G services among the three major carriers. LG Uplus has not yet expressed a separate position regarding the 2G service to the Ministry of Science and ICT. The ministry expects LG Uplus to decide on the termination of the 2G service within this month when the frequency reassignment announcement is made. Director Lee added, "So far, there has been no response or action from LG Uplus."

◆Free devices and discounts for switching to 3G or higher... User protection measures established = Protection measures for the approximately 384,000 remaining subscribers who will no longer be able to use SK Telecom's 2G service were also disclosed on the same day.

First, in case of increased device purchase costs or fee burdens when selecting 3G or higher services, subscribers can receive free devices (choice among 10 types) and discounts through a compensation program based on their choice. The existing seven 2G rate plans can also be used on 3G and LTE. These plans are used by 72.9% of the remaining subscribers.

Additionally, remaining subscribers who wish to switch to 3G or higher within SK Telecom can do so by phone without visiting a store, and for those aged 65 or older or with disabilities, switching can be processed through staff visits. Subscribers wishing to keep their existing numbers such as 011 can maintain their numbers until June 2021 through temporary intergenerational (3G, LTE, 5G) number portability or number display services.

Regarding specific discontinuation procedures and timing, the process will proceed only after users are fully informed. SK Telecom will begin the discontinuation process at least 20 days after approval and must diligently notify users of the discontinuation immediately after approval.

Furthermore, the discontinuation process will be carried out step-by-step, starting with areas where equipment aging is severe, with user protection periods at each stage. At least seven days must pass after starting the discontinuation process in each region before moving to the next. Users must be notified at least 20 days before equipment removal work. The Ministry of Science and ICT judged that terminating the service all at once could cause confusion, so the phased discontinuation will proceed in the order of provinces → metropolitan cities → capital region → Seoul. Even after approval, SK Telecom must implement user compensation plans for two years after termination and maintain 2G rate plans as proposed in the business discontinuation plan to minimize user complaints and damages.

Director Lee stated, "By conditionally approving this discontinuation application, we have taken necessary measures so that existing 2G users can enjoy 3G or higher services with less risk of network failure without additional cost burdens."

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