CJ Hellovision releases cheaper data rate plans

By Yoon Sung-won

CJ Hellovision, the operator of the nation’s largest budget telecom service, Hello Mobile, launched new rate plan that charges based on the size of data packages ― an industry first ― Tuesday.

The move is expected to prompt other budget service providers to roll out similar plans, intensifying the competition over cheaper rate plans started by SK Telecom, KT and LG Uplus.

“The launch of the new data-based rate plan will provide wider options to budget subscribers who want to choose a rate which fits their service usage,” CJ Hellovision’s business head Kim Jong-ryul said.

“The new rate plan will also make the budget telecom service industry follow the new market paradigm that has moved from voice call to data.”

CJ Hellovision said the 12 new plans include unlimited text messages and voice calls to both wired and wireless lines, while providing long-term evolution (LTE) data packages of different sizes, according to the cost of the plan.

The cheapest one costs 20,900 won ($18.72) per month and provides a 300-megabyte data package.

The one that offers 2 gigabytes is priced at 29,900 won per month. This is about 10,000 won cheaper that the 2-gigabyte data rate plans provided by the three major mobile carriers, which cost around 40,000 won.

Two of the 12 new rates, which cost 49,900 won and 59,900 won, respectively, offer unlimited data packages. Users can access the network even after they use up all the given basic data package, despite the fact that the maximum download speed is limited to 5 megabits per second, the company said.

Those who has already bought a handset or who own a used one can subscribe to a plan on a user subscriber identity module, or a USIM card, and use their phones without having to make a contract to maintain the subscription for a certain period of time.

“Though the market expectation has been high, we believe our new rate plans have enough competitive edge in price and other benefits for both our existing subscribers and those who seek to change their carrier,” a CJ Hellovision spokeswoman said.

On Friday, SK Telink, an affiliate to the nation’s top mobile carrier SK Telecom, launched two budget mobile rates that provide unlimited voice calls for less than 20,000 won a month.

Unlike CJ Hellovision’s plans, however, SK Telink’s unlimited voice call service is available only between SK Telink or SK Telecom subscribers and its data transmission is provided by the third-generation network.

Following CJ Hellovision and SK Telink, the other 25 local budget mobile service providers are expected to roll out similar data-based rate plans.

Budget mobile service providers operate on borrowed nationwide network infrastructure from SK Telecom, KT and LG Uplus. This means that their popularity also benefits the major mobile carriers.

CJ Hellovision uses KT’s network, while SK Telink operates on SK Telecom’s.

“All subscribers who use our network can be recognized as part of our customers,” a telecom industry source said. “The larger telecom companies will continue to work to bring more competitive network quality and rate plans to attract more subscribers.”