As the government and South Korea's three mobile carriers decide to introduce an integrated LTE-5G tariff plan, attention is focusing on how far user benefits will expand. On the surface, lowering telecom bills is the key, but an analysis suggests perceived benefits could vary depending on the type of user. With gaps likely to widen depending on usage conditions and data patterns, market interest is intensifying.

An integrated tariff plan sets prices based on data allowance and speed without distinguishing between LTE and 5G. Instead of choosing a separate 5G plan or LTE plan as before, users select only a data bracket such as 250 MB, 1.5 GB or 6 GB. They then automatically connect to the most stable network depending on the handset and network conditions. Major overseas carriers such as AT&T, Verizon and Japan's KDDI already operate such systems.

The three carriers will include a data safety option (QoS) as standard in the integrated plans, ensuring minimum service at speeds of about 400 kbps after data is used up. The Ministry of Science and ICT said it is holding talks with the three carriers on filing the terms and plans to have the plans launched in the first half of the year.

◆ LTE users to gain on both speed and price

LTE users are expected to feel the integrated plan benefits more strongly. LTE users on the integrated plans will be able to connect to 5G networks and receive QoS benefits after using up their data. That means they can enjoy 5G-quality service and an effect close to basic unlimited data at existing LTE price levels.

A telecom industry official said the integrated plan is ultimately structured to naturally absorb LTE users into a 5G environment, adding that LTE users are likely to see the biggest improvement in value for money.

With a minimum speed guaranteed even after data is used up, the user experience for low-priced plan subscribers is also expected to change. Until now, LTE users had to pay extra fees to use QoS or sign up for an add-on data-blocking service to avoid additional charges. Under the integrated plan, users can continue to use basic services such as messaging and simple searches, reducing concerns about being cut off from data.

5G users will also benefit to some extent. With QoS included as standard, the burden of excess data charges will ease. The ministry presented an example integrated plan offering 250 MB of data for 27,830 won. Given that the lowest tier of current 5G plans is in the high 30,000-won range, light users are expected to have more options.

Even so, the perceived impact may be limited compared with LTE users. Because 5G users already use a high-speed data environment, the change they feel is expected to focus more on easing the fee burden than on quality improvements. As a result, under the same integrated plan, LTE users are likely to mainly feel a speed upgrade, while 5G users mainly feel cost savings.

◆ A signal for simpler plans; competition seen intensifying

Some analysts say the integrated plan could effectively become a step toward winding down LTE plans. The three carriers have already begun halting new subscriptions for some LTE plans or are preparing related procedures.

For carriers, simplifying plan structures can improve operational efficiency, but competition could also become fiercer around key plans. With some assessments saying QoS at about 400 kbps is slow, data allowances and add-on benefits are expected to emerge as the core elements of competition.

An industry official said call quality is already more or less standardised, adding that competition over plan details such as add-on services and data allowances will be a key point to watch. The official added that how much data is provided at the same price point and how much perceived benefit is raised will be central to attracting subscribers.