5G and LTE plans that remove the distinction between the two have begun. LG Uplus has launched an integrated plan first among the three major carriers, and SK Telecom has signalled a launch next month. With KT also expected to introduce an integrated plan in the second half, the effect of easing telecom bills is expected to spread across users.

LG Uplus launches first, SK Telecom joins in July; attention on easing bills

The three carriers are moving to launch integrated plans in line with the government’s push to ease households’ telecom bill burden. The integrated plans charge based on data allowance and speed regardless of network generation, and apply a data-safety option (QoS) by default, a structure aimed at lowering telecom costs.

LG Uplus moved first. It launched 5G-LTE integrated plans called Data Plan and Plus Plan on June 1. It reduced 53 types of 5G and LTE plans to 18 and applies QoS across the full range of integrated plans.

Even on the Data Plan 300MB, which costs 28,000 won per month, users can continue using data at speeds of up to 400 Kbps after using up the basic data allowance. That effectively provides a basic safeguard so service does not cut off after data is exhausted, even on low-priced plans.

It also switched age-based benefits to automatic application. For example, when a teenage customer becomes an adult, the customer can receive additional data benefits for youths without a separate application. LG Uplus also introduced an all-in-one product that combines the previous structure in which customers had to subscribe to mobile and internet separately and then apply separately to bundle them.

SK Telecom will launch a 5G-LTE integrated plan called Best-Light on July 2. It is about a month later than LG Uplus, but it plans to increase subscriber convenience by also pushing to stop new sign-ups for existing plans and to revamp bundled products.

Best will consist of 5 options offering unlimited data, priced from 89,000 won to 129,000 won per month. Light will have 11 options providing data in tiers from 6 GB to 250 GB, priced from 39,000 won to 79,000 won per month. Along with the new plan launch, SKT will halt new sign-ups for 67 existing 5G and LTE plans.

As with LG Uplus, customers can receive tailored benefits such as additional data once they reach the relevant age group, without separately choosing specialised plans for teenagers, youths or seniors. SKT also strengthened benefits tied to artificial intelligence and online video service subscriptions. Users on Best Pro and higher plans will receive subscription benefits for generative AI services.

SKT will also apply QoS of up to 400 Kbps to 107 LTE plans from July 1. Customers who were paying for a 400 Kbps data-safety option add-on service will have that add-on automatically cancelled and receive free QoS instead.

SKT will also improve the system for its Yojum Family Bundle, which had required bundling one mobile line and one internet line, so customers can join by bundling mobile lines only. The aim is to lower entry barriers so two-person households that do not use fixed-line internet can also receive bundle discounts.

Even low-priced plans offer "unlimited data"; LTE users seen benefiting

A key point of the overhaul is the default introduction of QoS even on low-priced plans. If integrated 5G-LTE plans reduce complexity in choosing a plan, QoS is an element directly linked to lowering household telecom bills. Applying unlimited data to low-priced plans can eliminate add-on service costs and reduce the burden for users who used higher-priced plans over concerns about exceeding data limits. The Ministry of Science and ICT estimates QoS will cut telecom bills by about 322.1 billion won per year.

QoS speeds will be applied differently depending on plan tier. SKT and LG Uplus will apply QoS of up to 400 Kbps to plans priced at 50,000 won and below, and apply QoS of 1 Mbps or higher from the 50,000-won tier. From the 70,000-won tier, they will provide QoS of up to around 5 Mbps.

The industry is offering analysis that LTE subscribers may feel a bigger effect when they move to integrated plans. For example, an SKT subscriber using the LTE plan T Plan Special, which provides 150 GB of data for 79,000 won, can move under the integrated plan system to the 69,000-won Light 69, and use 110 GB of data plus unlimited data at speeds of up to 5 Mbps.

KT is also preparing to launch integrated plans. A KT official said, "We are preparing to launch integrated plans in line with the government’s stance." The industry expects KT to roll out integrated plans no later than the second half of this year. If KT joins the integrated-plan overhaul, the distinction between 5G and LTE plans among the three carriers will effectively be removed altogether.

Carriers still face the task of managing profitability. With QoS applied by default even to low-priced plans, there is a possibility that users of high-priced plans may move down. As a result, carriers are expected to seek differentiation through subscription benefits and AI services while also aiming to boost revenue through new businesses.

The budget mobile sector is also expected to be affected. Until now, budget mobile operators have touted low prices and ample data allowances as strengths. If the three major carriers expand 5G-LTE integration and default QoS provision, pressure to differentiate could increase.

A telecom industry official said, "Integrated plans are a change that redraws the map of the mobile pricing system so far," adding, "Carriers will compete to differentiate themselves going forward with their own weapons, such as bundling or subscription benefits, call quality and more."