"Why Are There So Many Confusing Mobile Plans?" Three Major Carriers to Launch 'Integrated Mobile Plan'...

[Financial News] SK Telecom, KT, and LG Uplus Corp.—the three major mobile carriers—are expected to introduce an Integrated Mobile Plan for both Fifth Generation Mobile Communication (5G) and Long Term Evolution (LTE) as early as this year. With the inclusion of Mobile Virtual Network Operators (MVNOs), the number of available plans reaches into the thousands, fueling consumer confusion and increasing household communication costs.
■ Choi Soo-jin's Office: "MSIT and the Three Major Carriers Are Finalizing Individual Consultations on the Integrated Mobile Plan"According to the office of Choi Soo-jin of the People Power Party on the 20th, the Ministry of Science and ICT (MSIT) is currently in the final stages of individual consultations with the three major carriers regarding the implementation of the Integrated Mobile Plan, with the goal of launching it within the year.
The Integrated Mobile Plan allows users to choose their plan based on data volume and transmission speed, regardless of whether it is Long Term Evolution (LTE) or 5G technology. Consumers simply select the amount of data and additional services they need each month, and can then use either 5G or LTE—whichever offers better coverage in their area. For those who do not notice a speed difference between 5G and LTE or live in areas where 5G service is limited, this plan allows them to use 5G devices at more reasonable rates.
■ 718 Plans from the Three Major Carriers AloneThe government has pushed for the introduction of the Integrated Mobile Plan due to the proliferation of plans, which hampers consumers’ ability to make rational choices and compare prices. According to data on LTE and 5G plans from the three major domestic carriers, obtained by Choi’s office from MSIT, SK Telecom currently offers 81 plans (53 for 5G and 28 for LTE), KT offers 81 (49 for 5G and 32 for LTE), and LG Uplus Corp. offers 89 (64 for 5G and 25 for LTE), totaling 251 plans. Even after the three carriers discontinued 131 plans and halted new subscriptions earlier this year, the number remains high.
When including plans that are no longer available for new subscribers but still have existing users, the total rises to 145 for SK Telecom, 260 for KT, and 313 for LG Uplus Corp.—a combined total of 718 plans.
Previously, both 5G and LTE could only be used with dedicated devices. However, since November 2023, the three major carriers revised their terms and conditions to allow LTE plans to be used on 5G devices. Despite this, the carriers continue to operate 5G and LTE plans separately, further contributing to the proliferation of plans.

■ Verizon, KDDI CORPORATION, and Others Have Already Adopted Integrated PlansNevertheless, the three major carriers continue to operate 5G and LTE plans separately, resulting in an excessive number of options. Major overseas carriers—including Verizon Communications Inc., AT&T, O2, EE, Telstra, Optus, and KDDI CORPORATION—have already implemented integrated mobile plans.
While carriers are focusing on 5G plans, the prolonged maintenance of 4G networks may lead to unavoidable costs for nationwide base stations and equipment maintenance. Additionally, with the introduction of mid-tier 5G plans, a key challenge for the Integrated Mobile Plan will be to offer sufficient data at lower prices than current 5G plans in order to effectively reduce household communication expenses.
An industry insider commented, "The biggest issue in introducing the Integrated Mobile Plan is determining whether its pricing should be based on the current 5G or LTE levels."

mkchang@fnnews.com Jang Min-kwon Reporter