Data Wholesale Prices to Be Cut to Boost Budget Mobile Market | Be Korea-savvy

Data Wholesale Prices to Be Cut to Boost Budget Mobile Market


The South Korean government announced on January 15 its most significant reduction in data wholesale prices in a decade. (Image courtesy of Yonhap)

The South Korean government announced on January 15 its most significant reduction in data wholesale prices in a decade. (Image courtesy of Yonhap)

SEOUL, Jan. 16 (Korea Bizwire) — The South Korean government announced on January 15 its most significant reduction in data wholesale prices in a decade as part of its 2025 telecommunications policy aimed at strengthening the competitiveness of budget mobile carriers.

The Ministry of Science and ICT revealed that the wholesale data rate, which budget mobile virtual network operators (MVNOs) pay to major telecom companies for using their infrastructure, will be cut by up to 52%. SK Telecom’s data wholesale fee will drop from 1.29 KRW per megabyte to 0.62 KRW.

This reduction includes bulk purchase discounts—25% off for pre-purchases exceeding 50,000 terabytes annually from SK Telecom and a 20% discount for purchases over 24,000 terabytes from LG Uplus. KT did not adjust its existing discount rates.

This price reduction is expected to be reflected in consumer pricing, with budget mobile providers anticipated to launch 5G plans offering 20GB of data for around 10,000 KRW per month in the first half of 2025.

LG Uplus has launched the "Al-Dot Care" service, allowing budget phone customers to easily check subscription details and usage online for greater convenience. The photo shows LG Uplus employees introducing the Al-Dot Care service (Image courtesy of LG Uplus)

LG Uplus has launched the “Al-Dot Care” service, allowing budget phone customers to easily check subscription details and usage online for greater convenience. The photo shows LG Uplus employees introducing the Al-Dot Care service (Image courtesy of LG Uplus)

 

Currently, similar plans from the three major telecom providers are priced in the 40,000 KRW range, while online plans are around 36,000 KRW and budget providers offer them in the mid-20,000 KRW range. A 10,000 KRW plan would effectively cut prices by half, attracting significant consumer interest.

Additionally, the ministry plans to gradually lower the basic line usage fee for small MVNOs. The fee, which was 1,400 KRW per mobile line in 2024, will decrease to 1,200 KRW in 2025 and 1,100 KRW in 2026 to ease the financial burden on budget mobile users.

The government’s pre-regulation system, which facilitated negotiations between telecom companies and MVNOs on wholesale pricing, is set to expire at the end of March 2025. However, Jae-Myung Ryu, head of the Network Policy Bureau at the Ministry of Science and ICT, assured that any attempts by telecom companies to raise the newly lowered wholesale rates could be blocked by the government.

Ryu also noted that while the government acknowledges the ongoing need for pre-regulation in the MVNO market, it is considering reintroducing regulatory measures after conducting a market study.

Strengthening the competitiveness of budget carriers is a key policy goal, including fostering full MVNOs—operators that own their equipment and systems—to potentially evolve into a fourth mobile carrier. Ryu indicated that two to three companies have expressed interest in pursuing full MVNO operations.

These initiatives reflect the government’s commitment to creating a more competitive telecom landscape and providing consumers with more affordable options.

Ashley Song (ashley@koreabizwire.com)

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