'Optimal plan notification' system takes effect Thursday

Carriers must analyze usage patterns and notify subscribers of best-fit plans every six months

Questions remain over how 'optimal' is defined and whether subscribers will actually switch plans

A telecom carrier's retail store in Seoul [Yonhap]
A telecom carrier's retail store in Seoul [Yonhap]

Telecom subscribers in South Korea will soon receive notifications every six months recommending the plan best suited to their usage.

A new system requiring carriers to analyze subscriber usage patterns and notify them of the most suitable plan — known as the "optimal plan notification" regime — takes effect Thursday.

The measure has drawn both optimism and pushback. Supporters say it will help subscribers shed unnecessary costs and reduce their monthly bills, while critics warn that the system-building and administrative burden on carriers could prove excessive. Industry observers say it will take considerable time before the regime delivers meaningful results, given the need to improve recommendation accuracy.

Under the new rules, carriers will be required to analyze each subscriber's data usage, usage conditions and other factors, then notify them of the most suitable plan every six months, according to industry sources Monday.

The legal basis for the system was established in March, when an amendment to the Telecommunications Business Act passed the National Assembly. The Ministry of Science and ICT announced proposed revisions to the implementing decree and related regulations in June.

A KT Corp retail store in central Seoul. Photo by Lim Se-jun
A KT Corp retail store in central Seoul. Photo by Lim Se-jun

The optimal plan notification system was designed to broaden subscribers' freedom of choice and ease the burden of telecom bills. It applies to carriers with annual mobile telecommunications sales of 1 trillion won ($735 million) or more, meaning SK Telecom, KT Corp and LG Uplus are all covered.

Carriers will assess each subscriber's average voice, text and data usage over the preceding six months, along with factors such as age, occupation and plan eligibility conditions, and notify them every six months if a more suitable plan exists. Details on how to switch plans will be sent by text message or email.

Significant challenges remain before the system can deliver real results. Industry insiders say establishing a uniform standard for what counts as "optimal" will be difficult. With an expanding range of bundled add-on services — including streaming platforms, AI subscriptions and various membership programs — relying solely on data usage to identify the best plan has clear limitations.

There is also resistance to what some see as an excessive burden on carriers. Building new IT systems and managing the notification process will add to operational costs. The industry estimates the combined compliance cost for the three major carriers over the next three years will reach around 43.7 billion won.

Mobile carrier retail stores in central Seoul. Photo by Lim Se-jun
Mobile carrier retail stores in central Seoul. Photo by Lim Se-jun

Whether the biannual notifications will actually prompt subscribers to switch plans is another question to watch. The rate of plan changes will serve as a direct indicator of how much subscribers feel the benefit and how well the recommendations fit their needs. Depending on how that trend develops, the government may revisit the current six-month notification interval.

If the system takes hold, attention will also turn to whether it could eventually be extended beyond the major carriers to cover subscribers of mobile virtual network operators, commonly known as budget carriers.

The Ministry of Science and ICT had initially considered including budget carriers in the system's design, but excluded them for now given the costs involved in building usage-analysis and recommendation infrastructure. The government plans to review expanding the system to budget carriers at a later stage, depending on how well the regime settles in.


sjpark@heraldcorp.com