Reporter's Notebook Telecom operators should maintain commitment to core biz
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By Kim Bo-eun
Korea became the first country to commercialize 5G services in 2019, and is known globally for its high-speed internet. Yet the country's three major telecom firms are now facing a class action suit for subpar 5G services.
A group of over 500 users of 5G services filed a compensation suit with the Seoul Central District Court, last week, against SK Telecom, KT and LG Uplus.
Members of the group claim that the telecom firms launched 5G services and attracted subscribers at a time when the infrastructure for the technology was not fully set up, and that resulted in them providing substandard services. They say that the price plans they have been paying for ― averaging 100,000 won a month ― provide greater grounds for receiving compensation.
The lawsuit was filed after an expose by a star YouTuber snowballed, prompting the government to launch an inspection into the three companies' internet speeds.
The latest developments take place at this time when telecom operators have turned their eyes to new businesses, as the local market for telecom services has become saturated. The companies are investing heavily in new technology, including artificial intelligence, blockchain and cloud services. They have begun expanding businesses in media content, internet data centers and smart cities, with pledges to increase the portion of non-telecom businesses in order to continue to drive growth.
As the shift takes place, questions are arising over their commitment to their main business, which is to provide quality telecom services.
Tests have shown that local 5G services in fact do not provide speeds that are purportedly 20 times faster than the previous-generation LTE service. The reason is that telecom operators have not carried through with their investment pledges for infrastructure.
Access to 5G services also still depends largely on region, as provincial areas lack the necessary infrastructure, specifically, base stations that can transmit at 5G speeds. This lack of base stations is why the Minister of Science and ICT recently called on the CEOs of the three telecom operators, urging them to ensure the setup of 5G network infrastructure in areas lacking access.
The telecom companies stated they would do their best to follow through with the government's request. But these efforts are now only remedial measures taken after service users complained.
Given the fact that offering quality telecom services is the main role of these companies, they should ensure that any new business is carried out under the premise that they are not neglecting their core business.
Doing so would mean that they promptly make any necessary investments when next-generation services are rolled out, so as to ensure that they can actually provide the level of services they promise.