Those who changed their cell phone plans to data-centered ones are said to be less burdened by mobile phone rates, and their voice calls and data usage have reportedly increased. In addition, more than half the subscribers who chose data-centered cell phone plans are said to have switched to more affordable ones. However, mobile carriers' average revenue per user (ARPU) has rather increased, and controversy over cell phone plans is expected to continue as a result.
On Aug. 4, the Korea Telecommunications Operators Association announced the results of its study on cell phone plans. The study involved 940,000 people who subscribed to data-centered cell phone plans in May, and compared their mobile phone rates in April and June. It was found that mobile phone rates were lowered by 6 percent (2,770 won) per person, and voice calls and data usage increased by 18 percent (73 minutes) and 13 percent (0.5 GB), respectively. It was also discovered that 51 percent of the people in the study saw their mobile phone rates decrease, while 30 percent experienced a rise in mobile phone rates. In particular, 28 percent of those who subscribed to a data-centered cell phone plan at the level of 300,000 won (US$256) a month (surtax included) switched from an unlimited voice call plan worth more than 56,000 won (US$47) each month.
The Ministry of Science, ICT and Future Planning (MSIP) explained that KT's "Data Push and Pull" service, SKT's "data refill and gifts" plan, and LG U+'s data-centered cell phone plan for high-resolution Internet TVs had an impact on a reduction in mobile phone rates.
The explanation is contrary to the analysis that data-centered cell phone plans, where an increase in data usage leads to a rise in mobile phone rates, actually increase mobile carriers' ARPU. An official at the MSIP said, "The change of those who subscribe to low-cost rates to thrift phones and the switchover of users from a 3G data plan to an LTE one have presumably contributed to a rise in ARPU. However, a more detailed analysis is required to get further information as to how much these two factors had an influence on the rise."
Meanwhile, the total subscribers of three local mobile carriers' data-centered cell phone plans was 6.33 million as of Aug. 2, and 52 percent of them have changed their mobile phone rates to data-centered cell phone plans that are cheaper than existing mobile phone rates.