According to ICT ministry data, there were a total 11.85 million 5G subscribers at the end of 2020
South Korean mobile carriers are now targeting user migration to 5G networks as they failed to meet their subscriber targets in 2020 due to the pandemic.
According to ICT ministry data, there were a total 11.85 million 5G subscribers at the end of 2020, with SK Telecom Co., the country’s largest wireless carrier, leading the pack with 5.48 million users, followed by KT Corp. at 3.62 million and LG Uplus Corp. at 2.75 million.
Initial forecasts made before the COVID-19 outbreak had put the figure at 15 million.
Telecom operators seek to boost their earnings by banking on mass migration to the latest generation networks this year, reports Yonhap news agency.
SK Telecom has targeted 9 million 5G users this year, while smaller rival LG Uplus said it aims for 4 million.
KT forecast its 5G users to account for 45 per cent of its total handset subscribers, compared with 25 per cent last year.
Subscriber counts on 5G networks are a key growth factor for local mobile carriers given costlier monthly data plans.
Telecom operators reported robust annual earnings despite disappointing user growth last year, with SK Telecom’s 2020 operating profit rising 21.8 per cent on-year to 1.35 trillion won (US$1.2 billion).
The companies have also recently diversified their 5G data plans, offering cheaper alternatives that cut costs by solely using online retail channels.
The forecasts are upbeat as the country’s 5G networks have progressed since their commercialisation in April 2019. Earlier, they were criticized for slower speeds, but that has improved since then.
According to a report earlier this month from mobile analytics company OpenSignal, South Korea’s 5G download speeds are highest globally at 354.4 megabits per second. It is second only to Kuwait in terms of the proportion of time 5G users stayed connected to the network.
The three companies will also focus on adopting new 5G technology this year, such as millimetre wave (mmWave) 5G, and a standalone version of the network, which does not require support from previous 4G networks.
The three telecom operators are racing to install nationwide 5G coverage ahead of a government deadline set for next year and promised to update network infrastructure by 2022 by investing up to 25.7 trillion won.