hankyoreh

South Korea has the most expensive smartphone data charges among the world’s major countries, a report claims. The findings came from a comparative analysis of 1,628 fee plans for 187 telecommunications companies (including 58 mobile virtual network operators (MVNOs)) in 41 OECD and EU member countries by the Finnish communications management consulting firm Rewheel. The analysis results were published by Rewheel on Dec. 1 in the report “The State of 4G Pricing, 2H2017 – Digital Fuel Monitor (DFM).”

Country Comparison for the Price of 1GB of LTE Data

For the report, Rewheel compared data charges for smartphone plans, which include both calling and data, and for data plans (used for tablet PCs and pocket Wi-Fi), which provide only data. The analysis focused solely on LTE plans, using the rates listed on the websites of telecoms in different countries as of November. For smartphones, the analysts focused only on plans offering at least 1,000 minutes of unlimited domestic calling.

South Korea ranked first out of 41 countries for smartphone plan data cost, at 13.4 euros per gigabyte (GB). Other countries with expensive rates included Canada in second with 12.10 euros, the US in sixth with 9.60 euros, Japan in tenth with 5.70 euros, and Germany in 13th with 5.00 euros. Finland had the lowest rate at 0.30 euros (around 380 won), while France’s rate was 0.80 euros (1,030 won). The EU average was 2.40 euros, while the OECD average was 3.30 euros.

The South Korea rate was around 45 times than Finland’s. South Korea also ranked fourth from the bottom for the amount of usable data for 30 euros, at 0.3 GB. France, Denmark, and nine other countries offered unlimited data, while the UK and three others offered 100 GB or more. Twenty-seven of the 41 countries offered at least 10 GB for 30 euros. South Korea’s three main telecoms all ranked among the ten most expensive per gigabyte of data: SK Telecom in fifth place, LG U+ in seventh, and KT in tenth.

South Korea also ranked 33rd out of 41 for the amount of available data for 30 euros under a data-only plan, at 22 GB. Poland, Switzerland, Finland, and eight other countries provided unlimited data. Canada ranked as most expensive at 9.70 euros per gigabyte of data, while Finland was the cheapest, coming in 41st at 0.08 euros. The OECD average was 1.20 euros, while the EU average was 1.00 euro.

According to the report, data usage prices fell in most countries from the first half of 2017.

“The median fully allocated GB price in EU28 (€2.4/GB) and OECD (€3.3/GB) fell by ≈30% compared to 1H2017,” the report noted, adding that “In Italy GB prices fell by more than 50% compared to 1H2017 in anticipation of Iliad’s imminent market entry.”

“In Korea, Canada, US, Japan and Germany operators still charge exorbitant gigabyte prices,” it continued.

South Korean telecoms objected to the findings. “In South Korea, data-centered plans providing unlimited voice calling are universal, and the inclusion of low-cost plans [with relatively high data pricing] in the comparison resulted in the data price coming out as high,” SK Telecom explained.

SK Telecom also said it was “unreasonable to simply compare South Korea with countries where the network speed is lower.”

“The amount of data provided is important, but quality, including the data rate, is another important fact that needs to be included in the payment value,” it argued.

A sign for telecommunications companies at the Yongsan Electronics Market. (Hankyoreh Archive)

A spokesperson for KT explained, “Because of the different conditions affecting communications charges in different countries – including the amount of data per zone, discounts, and terms of agreement – you can’t simply compare them by a set standard.”

“In South Korea, we have a 25% optional agreement discount system in place, and while some people use discount phones with lower rates, they were not included in the analysis,” the KT spokesperson added.

By Ahn Seon-hee, staff reporter

Please direct questions or comments to [english@hani.co.kr]