Seoul, South Korea - South Korea's three major telecom companies, SK Telecom, KT, and LG Uplus, have agreed to introduce unified 5G and LTE plans starting next year. This decision comes in response to criticisms raised during a parliamentary audit regarding the anomaly of LTE plans being more expensive than 5G plans.
During a meeting with the CEOs of the three telecom companies on Wednesday, Yoo Sang-im, Minister of Science and ICT, emphasized the need to reduce consumer telecom bills, promote competition in the telecom market, and invest in future growth areas such as artificial intelligence.
The parliamentary audit had highlighted the issue of "inverted pricing," where LTE plans, which offer slower speeds, were priced higher than 5G plans. To address this, the telecom companies have agreed to discontinue the sale of new LTE plans that are significantly more expensive than 5G plans by the end of this year. Existing subscribers will be allowed to continue using their current plans until their contracts expire.
Furthermore, the companies will introduce unified plans that base pricing on data usage and speed, regardless of whether the service is 5G or LTE. KT plans to launch its unified plans in the first quarter of next year, while SK Telecom and LG Uplus will follow suit once they complete the necessary system upgrades.
Other topics discussed at the meeting included improving the selective contract system, strengthening the competitiveness of mobile virtual network operators (MVNOs), and combating illegal spam. The telecom companies expressed their willingness to cooperate in improving the market structure for MVNOs and reducing wholesale rates.
The meeting also touched on the topic of artificial intelligence (AI) investments. Minister Yoo emphasized the symbiotic relationship between AI and telecommunications networks, noting that AI can enhance network performance while relying on robust networks for its development. He expressed optimism about the passage of the AI Basic Act later this year.
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