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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Nearly 80,000 subscribers are estimated to have left KT Corp. following the company’s announcement of a contract termination fee waiver related to an unauthorized micro-payment incident.
According to the telecommunications industry on January 6, a total of 79,055 KT subscribers ported their numbers to rival carriers over a six-day period from December 31 through January 5.
On the previous day alone, KT recorded 26,394 subscriber losses, reflecting activations processed through Sunday (January 4), when system operations had been suspended. Of those who left KT, 19,392 subscribers, or 73.4%, moved to SK Telecom, while 4,888 switched to LG Uplus. An additional 2,114 subscribers migrated to mobile virtual network operators (MVNOs).
Cumulatively, 79,055 subscribers have left KT since the company began implementing the penalty waiver on December 31. On January 5, a surge in number portability applications reportedly caused system errors due to heavy traffic.
With KT’s contract termination fee waiver scheduled to remain in effect through January 13, competition among mobile carriers to attract subscribers is expected to intensify. If the current trend continues, industry observers estimate that KT could lose approximately 200,000 subscribers in total.
For comparison, SK Telecom previously experienced the loss of roughly 166,000 subscribers over a 10-day period after implementing a similar penalty waiver following a USIM hacking incident.
Against this backdrop, South Korea’s three major mobile carriers have stepped up competition since the beginning of the year by enhancing incentives for number portability customers. At some highly competitive retail outlets, often referred to as “hot spots,” consumers can reportedly obtain smartphones at no cost when signing up for high-priced service plans.
SK Telecom, meanwhile, has launched a customer retention program in the wake of the USIM hacking incident. Under the program, customers who canceled their contracts between April 19 and July 14 are eligible, upon rejoining, to have their tenure and membership status restored to pre-cancellation levels.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
