KT, LG to offer ‘unlimited’ LTE service

KT and LG Uplus announced Friday that they will offer “unlimited” data services for customers signing up for new pricing packages supporting speedier telecommunication networks called Long-Term Evolution (LTE).

The move was designed to attract more customers as top local carrier SK Telecom will be banned from signing new customers for 22 days from Jan. 31 to Feb. 21. SK was fined by the Korea Communications Commission (KCC) for offering illegal handset subsidies.

Uplus was the first to announce its three monthly pricing packages for unlimited LTE services ― 14GB (gigabyte) wireless data for 95,000 won, 20GB for 110,000 won and 24GB for 130,000 won.

Under the scheme, the daily data usage limit is capped at 3GB. If a customer uses up daily limit, he or she will be able to use LTE service at a slower speed of 2Mbps for free. Mbps stands for megabits per second and refers to the speed of data transfer.

“This is part of our promotional campaign. We will provide special services packages just for three months from Jan. 31,’’ Uplus said in a statement.

LG Uplus spokesman said the company will decide whether to extend the promotional campaign after monitoring data traffic.

A few hours after LG’s announcement, KT said it will also provide its unlimited LTE wireless service starting from Feb. 1. KT said the campaign will last for three months.

“We hope those who want to use KT’s highly-qualified LTE WARP networks enjoy our service without a heavy financial burden,’’ company spokeswoman Kim Yoon-jeong said.

KT also has three monthly pricing packages similar to LG Uplus’ ― 14GB data for 95,000 won, 20GB for 110,000 won and 25GB for 130,000 won.

SK is also expected to follow the suit. “We are waiting for an approval from the KCC to allow us to provide similar services,” an SK official said.

SK needs a regulatory approval for the service because it is a dominant player in the market with market share of over 50 percent.

Market analysts have expressed concerns that the new services to attract more customers will further deteriorate mobile carriers’ profit margins.

“Carriers are being pressured to increase investments for stable LTE networks. The LTE market is approaching another overheating and the carriers will face heated competition to attract more customers. The new move is bad for the carriers,’’ said Ahn Jae-min, an analyst at Kium Securities, a local brokerage. <The Korea Times/Kim Yoo-chul>