Are Seoul's Mobile Service Fees the World's Highest? ... "Japan's Survey Criteria Were Flawed"

[Financial News] The Korea Telecommunications Operators Association (KTOA) rebutted the findings of a survey by Japan's Ministry of Internal Affairs and Communications (MIC), which found that mobile service fees in Seoul were among the highest of those in major cities worldwide. KTOA said, "There are problems with the comparison criteria and the selection of plans." It argued that the survey excluded low-cost plans that were actually available for subscription in South Korea, while including separate-brand plans in Japan and excluding voice and text-message costs, resulting in a comparison based on different conditions.

According to the telecommunications industry on the 27th, KTOA recently pointed out that the methodology used to compare mobile service fees in the MIC's recently released "Survey on Price Differences in Telecommunications Services in Japan and Abroad" lacked objectivity and credibility.
The MIC had previously compared mobile service fees in six cities: Seoul, Tokyo, New York, London, Paris and Düsseldorf. It compared the amounts paid by new subscribers for different levels of data provided by the operator with the largest market share in each country. For the 4G, 20GB-per-month tier, SK Telecom (SKT)'s fee in Seoul was 6,916 yen, the highest among the six cities. Seoul was also the most expensive at 6,916 yen in the 50GB tier.
KTOA argued that these results did not properly reflect the plans currently available to users in South Korea. It explained that cross-subscription between 4G and 5G plans has been allowed in the country since 2023, and that integrated plans designed to make it easier for users to choose a plan were launched in July this year.
In particular, KTOA pointed out that, when comparing 4G plans with 20GB of monthly data, the MIC used a plan priced at 6,916 yen, or about 69,000 won, that had been launched in the past instead of a plan priced at 4,200 yen, or about 42,000 won, that was actually available for subscription. As a result, Seoul's fee was calculated as the highest among the survey targets.
KTOA also cited the exclusion of voice and text-message costs from the calculation of Japanese fees as a problem. According to KTOA, the five countries other than Japan included in the survey offer unlimited voice calls and text messages in the plans being compared. In Japan, however, separate charges apply depending on voice and text-message usage, yet the MIC excluded those costs from its survey. KTOA argued that at least 2,000 yen should be added to Japan's fee for a comparison under identical conditions.
KTOA also explained that the scope of the plans being compared differed. Major international organizations, including the Organisation for Economic Co-operation and Development (OECD), generally exclude low-cost, standalone "second brand" (2nd Brand) plans that have limited accessibility when comparing telecommunications fees. The MIC, however, included ahamo, NTT Docomo's online-only brand.

KTOA argued that the results would change if the fees were compared under identical criteria, such as unlimited voice calls and text messages and the exclusion of special plans. Japan's fees, which ranked between first and fourth depending on the comparison tier in the MIC survey, would rank between fourth and sixth under the same conditions, while South Korea would rank third or fourth among the six countries. KTOA explained that under identical conditions, Japan's fees would be 1,294 yen to 7,102 yen higher than in the MIC survey.
KTOA also pointed out the limitations of comparing mobile service fees by monthly charges alone. It said network quality, actual data usage and the services provided should all be taken into account.
According to KTOA, a comparison of mobile service fees in 10 major countries presented at a National Assembly forum in 2024 found that South Korea's fees were below the overseas average in all data tiers: low, medium, high and unlimited. It explained that domestic users' average monthly data usage was 28.80GB, among the highest levels in OECD member countries, while average revenue per user (ARPU) per 1GB of data was $1.01, placing South Korea in the lower-middle range.
KTOA also emphasized that country-by-country comparisons of mobile service fees should consider not only prices but also data usage and telecommunications quality. It noted that a 2025 survey of mobile service quality in major countries found South Korea's download speed to be 973.55Mbps.
[email protected] Yoon Hong-jip Reporter