One phone, two numbers: eSIM now open to Korean telecom users

Industry

Published: 31 Aug. 2022, 18:48 Updated: 31 Aug. 2022, 19:37

One phone, two numbers: eSIM now open to Korean telecom users

From left, a mini SIM card, a micro SIM card, a nano SIM card and a chip that allows users to download an eSIM. [YONHAP]

KT will allow customers to use electronic SIM cards, or eSIM cards, on their phones starting Thursday.

Electronic SIM cards perform the same functions of a physical SIM card, but are downloaded on the phone and allow users with an existing SIM or eSIM to use a second telephone number on the single device. eSIMs have been adopted in other countries, some over four years ago.

Korea's three telecom companies each announced plans to launch eSIM subscription models after the government gave the final nod to implement eSIMs last December, but KT is the first to announce an actual date and method.

KT announced on Sunday that it will introduce its 5G LTE Dual Number plan, which provides 1 gigabyte of data for the eSIM telephone number for an additional 8,800 won ($6.56) per month, aimed at attracting customers who want to use their existing SIMs and the new eSIM cards at the same time.

SK Telecom and LG U+ have yet to release any subscription models.

The introduction of eSIMs is expected to be a gamechanger in the telecommunications market, because eSIMs not only allow customers to choose a differently-priced subscription model but also a different carrier altogether. So, an SK Telecom user could download an eSIM from KT on their phone and use the second number for a cheaper rate.

An advertisement for KT's 5G-LTE dual number phone plan. [KT]

For domestic consumers, the concept of eSIMs was a pie in the sky for a long time. After Apple introduced eSIMs for the iPhone XS, XS Max, and XR models in September 2019, more than 170 telecommunications companies in 69 countries, including the United States, have started operating eSIM services. Samsung Electronics, Apple and Huawei have made phones that support eSIMs for export since 2020.

But in Korea, opposition from telecommunications companies had been a stumbling block. Currently, SIM cards are sold at 7,700 to 8,800 won a piece, but eSIMs can be downloaded for 2,750 won, a third of the price. Telecommunications companies saw the cheaper selling price of the eSIMs as a disadvantage.

According to the telecommunications industry, combined sales of SIMs from the three major companies last year amounted to more than 20 billion won.

In particular, eSIMs were an unwelcome addition for the major telecommunications companies in that if they were to be allowed, consumers from the three carriers would be more likely to open a second number with other carriers or mobile virtual network operators (MVNOs), otherwise known as thrifty phones.

The government stepped in last year as consumers’ demand for eSIMs grew stronger, and the Ministry of Science and ICT changed regulations to allow eSIMS starting this September.

“eSIMs are important in terms of consumer convenience and its economic effect,” said Hong Jin-bae, head of network policy at the Science Ministry while announcing the approval of the 5G mid-rate plan last month. “This will serve as an opportunity for consumers to switch not only between the three major telecommunications companies but also MVNOs.”

People who have bought a more recent phone that supports eSIMs will be eligible to use them. Apple supports eSIMs in all products from the iPhone XS series, so users of iPhone models released after 2018 will be able to use the eSIM service immediately from September. For Samsung Electronics products, the Galaxy Z Fold 4 and Flip 4 models that were released in August support eSIMs.

Samsung Electronics' Galaxy Z Fold 4 and Flip 4 phones are on display at the KT Plaza Gwanghwamun Station branch in Seoul on Aug. 23, when pre-orders for the Galaxy Z Flip 4 started. [YONHAP]

The major benefit of the eSIM service is that customers can use two phone numbers on one phone. Three phone numbers are not allowed. eSIMs can be used with physical SIM cards or with another eSIM.

eSIMs can be used right away, by scanning a QR code provided by telecommunications companies, deciding on a plan and downloading a profile.

One reason for having two separate numbers would be that users could then hold two accounts to online services, such as social media or messenger apps.

Kakao Talk has already added functions to make its app compatible with the dual messenger function. An icon for the second number will be created next to the exiting Kakao Talk icon, and users can toggle between the two different accounts.

Local telecoms have allowed customers to use two numbers in the past, but the process was much more inconvenient.

For an additional fee of 3,000 won per month, companies would provide random virtual numbers. However, when calling or texting with the new number, customers would have to enter numbers or special characters such as an asterisk or a hashtag. When receiving a text message through the second number, a sign would appear in front of the text, and if consumers forget to enter the additional numbers or special characters to their texts when answering, they would expose their original phone number. The dual messenger function allowed the creation of additional accounts on Kakao Talk and Line on Android phones, but not for iPhones.

Enabling two phone plans to be combined, some have said the best combination for a work-home dual number phone would be to use the cheapest plan focused on call minutes for the work number and a data-oriented plan from an MVNO for the personal number.

At the three major telecommunications companies, unlimited data plans start at 80,000 won; but for budget phones, unlimited data is provided at around 20,000 won.

From Sept. 1, consumers can select and open local telecommunication companies’ phone plans with a eSIM, meaning there would be no need to purchase a local SIM card to save data charges when traveling abroad.

SK Telecom and LG U+ are seen as likely to follow in KT's footsteps.

Thrifty phone companies are making the most of the opportunity to release eSIM services in a bid to attract new consumers. Viva Republica, operator of the financial platform Toss, acquired Merchant Korea in July, a budget phone company, and announced the launch of a new budget phone plan within the year.

Budget phones, which had more than 10 million users last year, already occupy a 15 percent market share in the telecommunications market.

BY KIM KYUNG-MI [lim.jeongwon@joongang.co.kr]