Carriers pressure customers to go LTE

By Yoon Ja-young

Mobile carriers launched long-term evolution (LTE) services, expecting the ultra-fast data transmission to be their next cash cow.

With new services underperforming expectations, they are engaging in a hard sell, pressuring consumers to sign up for the expensive service by leaving them with few options.

Many consumers here, who are used to the unlimited data scheme for the 3G service, find LTE services expensive. Mobile carriers usually offer 300 minutes of voice calls and unlimited data service for a monthly fee of 55,000 won for 3G services, but in the case of LTE, they are providing only 1.2 GB data for a similar charge. If they use more data, they need to pay additional fees. Moreover, LTE services are meaningless for consumers in the provinces as some carriers haven’t even set up nationwide networks yet.

While incomplete networks and expensive rates make consumers hesitate to sign up for LTE, they seem to have no option when it comes to handsets. Most of the attractive new phones being released in the market these days are LTE phones as mobile carriers continue to bet on the new market. LG Uplus, the smallest mobile carrier, for instance, announced that 80 percent of the handsets it releases this year will be LTE phones.

Best option: LTE phone on 3G

Hence, the best combination would be using LTE phones for 3G services. There is no technological barrier here as all LTE phones have 3G chips as well. Support for 3G is indispensable when considering that the LTE network is not complete nationwide _ in provinces, 3G networks are essential.

However, mobile carriers aren’t allowing this option.

“LTE phones are meant to serve LTE services, not 3G. We restricted using LTE phones on 3G networks as we designed the service and mobile rate to best suit LTE, not 3G,” a spokesman for SK Telecom said.

He said that the phones support both LTE and 3G not to give either option to consumers but because the LTE units are not meant to work only as phones. LTE services uses 3G networks instead of LTE for voice calls and LTE networks for data services. Hence, LTE phones have 3G chips installed. “If mobile carriers start offering voice services over LTE networks, there could be need for LTE only phones, but there isn’t such a need,” he said.

KT instead is getting a favorable reaction from users, allowing options. They can subscribe to 3G services and its unlimited data scheme with LTE phones. For instance, they can use LTE phones like Samsung’s Galaxy Note to use 3G services, by inserting their 3G USIM chip into the handset.

“There were consumers who wanted to use LTE phones, but we had to delay the launch of the LTE services until early this month due to a court order. That’s why we allowed them to subscribe to our 3G service with their LTE phones,” a KT spokeswoman said. It doesn’t, however, mean that KT encourages such a combination. “To enjoy the function of LTE phones to the fullest, it is best to subscribe to solely LTE services,” she said.

With the positive responses from users seeking such a combination, there are now around 3,500 people subscribing to its 3G service with LTE handsets. From Jan. 20, however, the promotion ends, and it doesn’t subsidize those who choose this combination of LTE phone and 3G services.

Carriers, however, are expected to fully allow this option soon as the regulator is likely to make it obligatory for carriers to allow 3G functions in LTE phones. The regulator is scheduled to adopt a “blacklist system,” which forces mobile carriers to serve any handset unless it is on the black list of stolen or lost phones. Under this system, those who have LTE phones should be allowed to subscribe to 3G services.

“We may offer the option when the regulator introduces the policy,” the SK Telecom spokesman said.