LG +U offers monthly plan with unlimited LTE data

Mobile service providers will soon offer unlimited data communication for users of the LTE next-generation network, similar to what was done with 3G.

LG U+ on Friday announced that it will introduce a “freedom of unlimited LTE data communication,” a rate for unlimited data communication, for a three-month period from Jan. 31 through the end of April.

Won Jong-gyu, executive director of LG`s mobile business division, said, “Despite the burden of the need to expand investment in networks, we decided to introduce an unlimited LTE data communication rate to prevent customers from paying excessively high data fees.”

A subscriber to the rate must pay at least 95,000 won (88.40 U.S. dollars) per month. Other unlimited LTE data rates include those with a monthly rate of 110,000 (102.40 dollars) and 130,000 won (121 dollars). If a 10-percent excise tax is added to these amounts, the monthly service fee will effectively range between 104,500 (97 dollars) and 143,000 won (133 dollars).

The new unlimited data rate would thus benefit LTE users with heavy data use, including those who frequently watch high-definition video via the Internet. If an LTE user who pays 85,000 won (79 dollars) a month for 14GB of data frequently downloads data in excess of the volume, the new rate can save money.

The new system would also be economical for a family with multiple tablet PCs. This is because an LTE tablet that comes with a USIM card is capable of sharing data through the unlimited data rate.

For instance, if two parents and their two children uses three tablets, at least 82,500 won (76.8 dollars) must be paid for LTE data service apart from smartphone fees. If the same family shares the unlimited data rate, it can use unlimited LTE data in all three tablets by paying an extra 7,000 won per device (6.50 dollars), or 21,000 won (19.5 dollars) a month.

For users who require relatively small data, the “comfortable data rate system” available at 55,000 (51 dollars), 65,000 (60.50 dollars), and 75,000 won (70 dollars) were also announced Friday. A subscriber to this service can avoid extra data fees even after using up his or her allocated monthly data, and will only have a limited communication speed of 400 Kbps or less. This speed will allow the user to comfortably read email or suft the Web, but not watch HD-quality video.

LG`s introduction of the unlimited LTE data communication system got a quick response from rivals SK Telecom and KT, who say the new rates are a strategy to regain subscribers LG lost over its sale and marketing suspension period, adding they are considering measures, such adopting as a similar rate system.”

The country`s three mobile carriers, SK, KT and LG, were ordered by the Korea Communications Commission to suspend sales activities for recruiting new subscribers by taking turns as punishment for providing excessive subsidies in a race to recruit customers last year.

The commission suspended LG`s sales operations for 30 days from Jan. 7, SK for 22 days from Jan. 31, and KT for 20 days from Feb. 22.

sanhkim@donga.com