LG Uplus desperate to lead in 5G

By Jun Ji-hye

LG Uplus is mobilizing every possible means to get out of its position as the nation's smallest mobile carrier, going aggressively after its larger rivals SK Telecom and KT, according to industry officials Tuesday.

It has been banking on the fifth-generation (5G) network as a chance to narrow the market share gap with SK Telecom and KT, carrying out a series of aggressive marketing activities promoting 5G-related services.

LG Uplus also filed a complaint with the Korea Communications Commission (KCC) against the two competitors, last week, over the allegations that they offered illegal subsidies to new subscribers when the Samsung Galaxy S10 5G and the LG V50 ThinQ 5G were launched.

In its complaint, LG Uplus reportedly claimed SK Telecom and KT violated the law that restricts phone subsidies and offered excessive financial benefits in overheated competition to sign up new customers for 5G networks.

This has disrupted fair competition, which should have engaged customers with better services or fee systems, LG Uplus said, asking the KCC to launch an inspection to confirm the fact.

“Rival companies have disturbed the 5G market by offering excessive subsidies,” an LG Uplus official said. “We expect the KCC to help stabilize the market.”

The move of the smallest mobile carrier comes amid expectation that excessive competition for new 5G customers will reappear when the Samsung Galaxy Note 10 is released next month.

From LG Uplus' point of view, this could hinder the firm's efforts to increase the number of new subscribers.

LG Uplus said it has successfully increased the number of new subscribers since the launch of 5G services in early April and is catching up with the second-largest mobile carrier, KT.

According to LG Uplus, there are signs of changes in the decades-long market share structure among the three major players, from 5:3:2 to 4:3:3.

But the firm's move is facing criticism from SK Telecom and KT.

An official from one of the two companies said, “LG Uplus seems to have the audacity to accuse us of offering what it claims to be illegal subsidies.”

The two companies said the legitimacy of activities carried out by companies should be decided by government authorities, not by a certain company.

In June, LG Uplus came under attack from SK Telecom and KT as well, after it published an advertorial in several newspapers here, stating its 5G network was the fastest in Seoul. The company cited the results of a test the firm conducted using BENCHBEE, an application used to measure smartphone data transmission speeds.

The two rivals disputed LG Uplus' claim, raising questions over how the speed was measured.