5G users exceed 30 million as of April

Logos of Korea's three telecom companies, SK Telecom, KT and LG U+, shown at a retail store in Seoul [YONHAP]

The number of 5G users exceeded 30 million as of April, with about net inflow of 423,000 new subscribers from the previous month, according to the Ministry of Science and ICT Tuesday.

That is a 28 percent increase from the same period last year.

SK Telecom users took up 47.8 percent of the total 5G subscribers, followed by KT with a 30 percent share and LG U+ with 21.4 percent.

Meanwhile, the mobile virtual network operator (MVNO) service — which provides cheaper subscription plans using existing networks of major carriers — is fast expanding its presence in the market.

Those who are subscribing to an LTE plan increased by 315,041 month-on-month to reach 46.3 million in April, as the LTE-based MVNO service gains popularity amid high commodity prices. The number of LTE-based MVNO users increased by 261,316 from March to reach 12.7 million in April.

MVNO services powered by 5G networks added 19,248 new subscribers from the previous month, its user number reaching 239,353 in April. The increase in 5G-based MVNO users is getting steeper, with about 20,000 new subscribers added every month since the latter half of last year, from the previous monthly increase of around 10,000 new users.

With an increasing number of consumers moving away from pricy 5G services and instead seeking alternatives in the MVNO, the major telecom service providers have been coming up with mid-range 5G subscription plans as of late.

The government is also urging the major carriers to lower 5G service prices, as telecom expenses are considered one of the major drivers in soaring household expenditures.

On Thursday, SK Telecom introduced a new 5G plan specially designed for younger consumers aged under 34 years to provide more 5G data usage compared to other plans in a similar price range. KT also introduced a similar plan for those in their 20s on Friday, and LG U+ plans to follow suit next month.

The three telecom service providers recently found themselves in hot water as the Fair Trade Commission (FTC) imposed a combined 33.6-billion-won ($25.7 million) penalty and corrective orders on SK Telecom, KT and LG U+ in May for their misleading advertisements regarding 5G network speeds.

The antitrust watchdog accused the companies of misleading and exaggerating the performance of their 5G networks by claiming speeds only achievable under very limited conditions.

The 5G network service involved in the regulator’s latest decision is at 28 gigahertz, which is considered the “True 5G” and is different from the more commonly-used 5G connection on the 3.5-gigahertz band.

The 5G connections consumers get now, which are four to five times the speed of 4G, are carried on the 3.5-gigahertz band. Ultra-fast 5G, or True 5G, utilizes the high-band 28-gigahertz band and has a download speed 20 times faster than 4G in theory.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]