LG Uplus draws customer criticism

By Bahk Eun-ji, Yoon Sung-won

LG Uplus is drawing complaints from customers for inconveniences caused by the lack of basic apps provided by the nation's smallest mobile carrier for new iPhone 6 models.

This is the first time that the telecom services unit of LG Group has sold Apple's smartphones, five years after its bigger rival KT first introduced them in November 2009.

To take advantage of the popularity of the iPhone 6 and iPhone 6 Plus, the company hurriedly started selling the latest models ― but without sufficient preparation.

Many users are posting comments critical of the company’s poor services on various mobile-related Web sites.

Their complaints center around the company’s failure to provide an app where they can check details of the use of their phones, including calls, text messages, data and other information.

SK Telecom and KT provide the customer service app.

LG Uplus says that it will be able to provide the app for iPhone users at the end of the year.

An Internet user posted his grievances on a Website.

According to him, the company, in response to his question about the timing of the launch of the app, said, “Apple’s policy is more exclusive than that of Google’s and we have been more deliberate to release the Korean language app.”

He and other customers urged the company to make sure to provide Korean language apps optimized for Apple’s iOS operating system.

In addition, LG Uplus failed to develop the long-term evolution (LTE) technology called “Over the LTE,” or OTL, because it lacks the third-generation (3G) network to substitute for LTE.

This has forced the subscribers to wait longer to for the subscription process compared to other telecom companies.

“Other mobile carriers already went through such problems when they first introduced the iPhone and they learned that Korean language app optimization is an essential part of customer service,” an LG Uplus official said.

LG Uplus said the customers’ service app has already been developed but it is still being examined at Apple’s app store before it is officially released on the market.

SK Telecom is the leader in the local telecom market with a 50 percent market share, followed by KT with 30 percent and LG Uplus 20 percent.

But its unorganized marketing approach to sell more handsets is raising Apple’s eyebrows, forcing the tech giant to seriously consider cutting the amount of product allocation next time, LG Uplus officials said.

"I have to admit that we were hesitant to introduce iPhones. We may have to review our customer policy for our iPhone users from a zero base," an LG Uplus official said.

He said its announcement to set its suggested retail price for iPhones at 700,000 won without discussion with Apple also irked the company.

Meanwhile, the Korea Communications Commission (KCC), the nation's top telecom regulator said it will impose penalties on the nation's three carriers over illegal handset subsidies offered to buyers of the iPhone 6 and iPhone 6 Plus.

"LG Uplus is facing penalties as much as 4 percent of its iPhone-related sales," said a KCC official, adding that SK Telecom and KT also face penalties

Some sales dealers, aided by the telecom services companies, offered illegal subsides to customers several weeks ago.

The Mobile Device Distribution Improvement Act has set a 345,000 won cap on subsidies and mandated heavy penalties for carriers and retailers caught exceeding the limit.