Government: "Must Announce Optimal Rate Plans Every 6 Months"... Telecom Companies: "Too Frequent"

It has been reported that the government has tentatively decided to set the notification cycle for "optimal rate plans"—which recommend the most suitable plan based on users' data usage patterns—at six months.
This measure is intended to periodically notify customers, in conjunction with the implementation of integrated rate plans combining 5G and LTE, so that they can easily switch from unnecessary high-priced plans to more affordable ones. However, concerns are being raised about potential side effects, such as increased user fatigue due to repetitive notifications and increased operational and cost burdens for telecommunication companies, as this notification cycle is the shortest among major countries.
According to industry sources on the 14th, the Ministry of Science and ICT conveyed this policy during the process of gathering industry opinions to create subordinate regulations containing detailed standards, ahead of the implementation of the amendment to the Telecommunications Business Act this coming October, which mandates telecommunication companies to notify users of optimal rate plans. The purpose of introducing optimal rate plans is to reduce household telecommunication costs. The government believes that the launch of complex and diverse rate plans is limiting users' choices.
However, criticism is being raised that a notification cycle that is too frequent compared to major countries could actually diminish the effectiveness of the system. Considering users' data usage patterns, which do not change in the short term, and the launch cycles of new rate plans by carriers, a six-month cycle suggests the possibility of repeatedly recommending rates similar to previous ones.
There are also concerns that frequent text messages recommending rates may be perceived as spam by users, reducing the effectiveness of rate switching; furthermore, contrary to their original purpose, these messages could be exploited as a marketing tool by carriers. In the UK, which introduced a relevant system in 2020, users are notified of the optimal rate plan based on service and usage at least once a year upon contract expiration, provided they are not under a no-contract policy.
An industry insider stated, "Users of high-priced data plans prioritize unlimited data usage above other benefits," adding, "They will not switch to lower-tier plans with limited data usage simply because they are informed of cheaper rates.
" It is also inevitable that various costs for carriers will increase. 6 million subscribers of the three major telecommunication companies.
Within the telecommunications industry, there is a growing sentiment of dissatisfaction regarding the government's continued pressure, such as applying the Data Safety Option (QoS) even to low-cost plans in the 20,000 won range and mandating investment in 5G Standalone (SA) mode.
mkchang@fnnews.com Jang Min-kwon Reporter