Family plans become the go-to option for telecoms

Mobile carriers are promoting family package services and expanding membership benefits as they attempt to attract new groups of subscribers and prevent existing customers from canceling contracts.

SK Telecom, KT and LG U+ have revamped their family packages and added new discounts after they were prohibited from giving smartphone subsidies of more than 300,000 won (about $280) under a mobile act that took effect last year.

SK Telecom and KT have expanded their family packages to apply to a subscriber’s parents, grandparents, brothers, sisters, children, grandchildren, daughters-in-law and sons-in-law.

SK Telecom, the No. 1 player, launched the TB All Family Free service on Monday, which gives a bigger monthly discount on landline and Internet fees based on the number of family members subscribed.

SKT also announced it will increase discounts for family plan subscribers at their stores, and will add to the number of stores that participate in the discount program.

VIP customers can now receive unlimited discounts, while gold customers will be allowed to use up to 100,000 points at affiliated stores, up from 70,000 points. Silver customers can use up to 70,000 points and general customers can use 50,000 points.

Customers can use the membership points at a total of 90 SK affiliated stores, including Paris Baguette, Outback Steakhouse and Ministop.

They can get a 5 to 15 percent discount at Paris Baguette, Outback Steakhouse and Ministop, 15 to 20 percent off at Bulgogi Brothers and 20 percent off at Hollys Coffee.

The nation’s second-largest mobile carrier KT on Monday launched LTE Get Together Olleh, on which up to five family members can subscribe and get Internet and IPTV for 47,700 won per month.

LG U+ started a “All-in-one yo” product on Monday that can be used by up to five family members for mobile, Internet and IPTV services.

A 62,000 won monthly plan comes with an 8,000 won discount per family member. Plans cheaper than 62,000 won will be subject to a 5,000 won discount per subscriber in the family.

“As the government tackles and picks on every service and customer benefit that mobile carriers launch, there aren’t many ways that carriers can provide advantages to consumers,” said a spokesman for a mobile carrier. “In order for the customers to actually experience the benefits, we expanded membership discounts.”

BY KIM JUNG-YOON [kjy@joongang.co.kr]