Carriers keep pressing mVoIP over LTE

By Yoon Ja-young

Mobile carriers are continuing restrictions on mobile Internet phones despite the introduction of fourth-generation (4G) long-term evolution (LTE) services. They say that mobile Internet phones should be restricted due to the burden they put on the network. This doesn’t stop consumers from complaining that carriers are depriving users of choices despite expensive rates.

Consumers welcomed the introduction of mobile voice over Internet protocol (mVoIP), or mobile Internet phones, as the service, which transforms voice calls into data and transmits it through mobile data networks, is cheaper than conventional calls. People love to save money but the service wasn’t as widely used as expected due to the poor quality of the third generation (3G) network. Data traffic jams devalued it.

The introduction of the 4G LTE service changes the plot. LTE is five times faster than the 3G network, thus improving the quality of mVoIP on the new network.

Despite this, mobile carriers continue to restrict mVoIP on the LTE network as they did with the 3G service.

SK Telecom’s 3G service users, for instance, must subscribe to an unlimited data scheme, costing at least 54,000 won a month, to use mVoIP. It has blocked mVoIP services for subscribers of data schemes cheaper than this. Even those who have chosen the unlimited data scheme can only use a certain amount of mVoIP each month.

SK Telecom rationalized the restrictions. “These services can eat into our revenue from voice calls. If we don’t set a limit, those who have chosen an unlimited data scheme may overly use the mVoIP services, say, for tens of thousands minutes each month,” a representative for SK Telecom said.

For LTE services mobile carriers aren’t providing unlimited data schemes. Consequently, consumers and mVoIP services believe mobile carriers aren’t justified to cap mVoIPs on LTE network.

“Mobile subscribers already pay for the data traffic. They have the right to use it as they want,” a representative for Daum said. Daum offers an mVoIP service through “My People.”

LG Uplus, the smallest mobile carrier, isn’t restricting mVoIPs yet. A representative for the carrier said, “In the contract, we make it clear that voice calling through data on the network is prohibited regardless of which price plan the user chooses.” In reality, mVoIPs on its network are not blocked.

Network neutrality

More fundamentally, the controversy stems from how network neutrality is perceived, or the idea that networks should treat all content fairly. “The mVoIPs are like free riders on the networks that we’ve established with a huge investment. These services question the validity of the investment to begin with,” SK Telecom said.

She said that many mobile carriers overseas also restrict such services, though mVoIPs aren’t incurring huge data traffic burden on the network.

LG Uplus said that it may block mVoIPs anytime. “We are monitoring the traffic. We can limit it anytime, as the service contract bans it anyway.”

The representative for Daum, however, said that mobile carriers shouldn’t be limiting services only because certain businesses eat into their profitability, based on the principle of network neutrality.

Lee Ju-hong, a director for the Green Consumer Network, said that consumer options should come first. “Communications companies opposed the adoption of Internet phone services, but it turned out it didn’t eat into their profits. Mobile carriers needed to develop technology to effectively deal with the traffic first before launching LTE, but they hurriedly launched it to take leadership in the market without enough preparation,” he said, adding that LTE is currently available only in Seoul.

“Now, they are making consumers victims of a weak foundation. They are limiting consumers from using the network freely, instead of advancing the technology to overcome the intense traffic.”