ED Mobile carriers' upbeat earnings

Complaints over poor 5G network connectivity must be heeded

Korea's three major mobile telecommunications carriers have reported upbeat second-quarter earnings on the back of a continued rise in 5G network subscribers. The good results must have come as welcome news to them, but experts caution they should pay heed to the rising complaints over the poor quality of their 5G services.

In an earnings report Tuesday, KT said that it reaped an operating profit of 475.8 billion won ($413 million) from April to June on a consolidated basis, up 38.5 percent from the previous year. The telecom giant's sales for the period rose 2.6 percent to 6.03 trillion won.

Earlier, LG Uplus said its operating profit rose 12 percent to 268.4 billion won in the second quarter, buoyed by handsome gains in 5G subscriptions. The company's sales increased 2.2 percent to 3.34 trillion won.

Top carrier SK Telecom's second-quarter operating profit is estimated to reach 405 billion won, up 12.6 percent from a year ago, on sales of 4.83 trillion won, up 5 percent.

The three companies deserve praise for their focus on new businesses such as artificial intelligence and smart factories, as well as 5G networks. There is no doubt that increased demand for contactless services, triggered by the COVID-19 pandemic, has contributed to boosting their quarterly earnings.

However, now is no time for complacency. Consumers, in particular, are asking them to pay attention to corporate social responsibility in maintaining their growth momentum. While it's true that the number of 5G subscribers continues to grow, the three carriers are under fire for being less active in expanding the 5G networks. In fact, hundreds of customers filed a class-action lawsuit against them in June seeking compensation for poor network connectivity.

The Fair Trade Commission is also scrutinizing the carriers over their alleged false and exaggerated 5G advertisements. Customers want them to introduce innovative technologies and upscale services, otherwise, they will be shunned, and their growth not guaranteed. Hopefully, the carriers will inject fresh vigor into our tech industry by continuing to improve their performance.