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[Newsmaker] KT unveils phone plans based on data

By Korea Herald

Published : May 7, 2015 - 20:53

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KT, the nation’s second-largest telecom carrier, on Thursday launched new service plans that charge users based on their data use while offering almost unlimited voice call and messaging services.

This is an unprecedented phone plan in Korea where Internet-based communications are fast replacing traditional voice calls and text messages.

Under the new scheme, the lowest-priced plan, 300 megabytes per month, is 29,900 won ($27.45) with free mobile calls. Those who pay more than 54,900 won per month can use both mobile and fixed-line calls without restrictions.

Considering KT started offering an unlimited voice call plan for a monthly payment of 100,000 won back in 2004, the new plan is almost 70 percent cheaper than 10 years ago, the company said. 

KT’s marketing chief and senior vice president Nam Kyu-taek (center) presents the company’s new service plan at its headquarters in Gwanghwamun, central Seoul, Thursday. (KT) KT’s marketing chief and senior vice president Nam Kyu-taek (center) presents the company’s new service plan at its headquarters in Gwanghwamun, central Seoul, Thursday. (KT)

So far, telecom companies have designed phone plans based on voice calls and the proportional data service has been offered regardless of different needs among network users.

“This is a paradigm shift,” said Nam Kyu-taek, KT’s marketing chief and senior vice president, during a media conference. “The new scheme will significantly cut telecom service costs for households.”

According to KT, the new plan saves an average of 3,590 won per person every month. Considering the company’s some 10 million LTE service subscribers, a total of 430.4 billion won is estimated to be saved every year.

KT said the new plans will give benefits especially for middle-aged people who use less data and more voice calls. The company also allows unlimited data-based calls, which would save roaming fees for frequent travelers.

Along with the new plan, the company also unveiled more flexible data plans that allow users to save leftover data or to use it in advance depending on their monthly data use.

KT added that the new data-based plan will reshape the nation’s telecom market and related services, paving the way for a new ecosystem.

In the meantime, the No. 1 SK Telecom announced Thursday it was discussing with the government to launch its own data-based service plans. LG Uplus, the smallest player, is said to be working on similar phone plans.

By Lee Ji-yoon (jylee@heraldcorp.com)