※ URL(Korean):https://www.kisdi.re.kr/bbs/view.do?bbsSn=114657&key=m2101113055776&pageIndex=4&sc=&sw=

KISDI Publishes Report on “The Impact of 5G Pricing Plan Characteristics on User Benefits: Focusing on the Tying of Devices and Plans” 
– 5G tying policies proved effective in the early diffusion stage, but ensuring consumer choice is more important in the long term 

The Korea Information Society Development Institute (KISDI, President Sangkyu Rhee) has recently released its Basic Research Report (24-06) titled “The Impact of 5G Pricing Plan Characteristics on User Benefits: Focusing on the Tying of Devices and Plans.”

The report analyzes how the tying policy between 5G devices and pricing plans has affected consumer choice and benefits, and provides policy implications that can serve as a reference for the introduction of future next-generation communication technologies.

Since the world’s first commercial launch of 5G in Korea in 2019, the service has expanded rapidly, but consumer dissatisfaction and controversy over limited choice have persisted. In particular, as subscription to a 5G plan became effectively mandatory for 5G device users, concerns were raised regarding consumer choice and service quality.

According to simulation analyses presented in the report, the 5G tying policy had a positive effect during the early stage of rollout, when service quality was still unstable, by increasing the rate of new technology adoption by approximately 51.8 percent—from 9.05 percent to 13.78 percent.

However, in environments with sufficient network coverage, the market share of new technology adoption reached a similar level (12.72 percent) even without the tying policy, close to the 13.78 percent observed when the policy was applied under insufficient coverage. This suggests that once coverage is secured, voluntary consumer adoption alone can drive the diffusion of new technologies.

The report emphasizes the need for policy directions that ensure both service quality and consumer choice when introducing new technologies. It highlights (1) the importance of investing in the improvement of initial infrastructure quality rather than enforcing mandatory tying policies, (2) designing reasonable pricing plans that account for price sensitivity, and (3) providing customized services that reflect diverse consumer preferences.

Associate Research Fellow Jinwhan Park stated, “This study quantitatively analyzed how the tying policies implemented during the initial introduction of 5G affected actual consumer benefits. The findings suggest that for future next-generation communication technologies, a flexible, consumer-oriented approach may be more effective than coercive policies.”