Half of mobile telecommunication users were not satisfied with the carrier.
The three mobile carriers in Korea are trying to keep customers from switching to other providers by offering discounts and benefits. However, many users are still not satisfied with the carriers and would like to switch to a more affordable MVNO. If the full self-sufficiency unlock system is introduced, it is expected that the preference for online distribution channels and affordable MVNOs will increase.
Half of mobile telecommunication users were not satisfied with the carrier.
According to a report by the Korea Electronics and Telecommunications Research Institute (ETRI), 50% of the respondents said they were satisfied or very satisfied with their satisfaction with telecommunication companies.
The report analyzed the results of a survey of 2,048 LTE and 5G smartphone users aged 20 to 59 in October last year.
Only 46% of 5G service users said they were satisfied, which is lower than LTE users (52%).
The reason for 5G users' complaints was that it was converted to LTE (43%) and speed (40%).
64% of 5G users said they felt burdened by fees, which was higher than that of LTE users (42%).
The reason for not trying to use 5G was expensiveness (58%) and the speed differentiation (58%).
Reasons for not using 5G include expensive fares (58%) and speed differences (58%).
LTE users pointed out that the latest 5G smartphone (56%) as the reason for trying to use 5G services.
While 92% of MVNO subscribers said fares were important or very important, subscribers of the three mobile carriers tended to value combined benefits (75%) and benefits for long-term customer(72%).
When purchasing unlock handsets, 24% of them were willing to change their carriers, and 64% of them preferred affordable MVNOs.
Based on this, the report predicted that if 60% of all users are willing to use "self-sufficiency" unlock devices, the share of the three mobile carriers, which is 88.9%, will be reduced to 79.5% while the share of affordable MVNOs will increase from 11.1% to 20.5%.
The report said, "If the full self-sufficiency unlock system is introduced in the future, preference for online distribution channels and affordable MVNOs is expected to increase further," adding, "We believe that there will be a change in the competition for mobile communication."
If the discount rate is large due to the family combination discount, the difference from MVNO is clearly reduced, but it is not cheaper. Here, it is becoming the strategy of the three large mobile carriers to keep the consumer not wanting to lose its existing benefits.