Average monthly mobile phone charge is 34,000 won

Seoul--(뉴스와이어)--An average monthly mobile phone charge is 34,000 won and SK Telecom subscribers and the 20s age group pay the highest mobile bills. The high fee seems to come from use of additional services and wireless Internet.

Mobile phone users pay an average (median value) monthly charge of 34,000 won, according to the fourth wave (September 2006) of Telecom Syndicated Study conducted by Marketing Insight, Inc. (www.mktinsight.co.kr, CEO: Kim, Jin-Kook), a consumer research company that biannually surveys more than 100,000 mobile phone users. Monthly charges of voice calls, additional services, and use of wireless Internet and data (excluding subscription fee and handset payment in installments) increased 1.5% (around 500 won) compared to the second wave (the same period of the last year) and showed no big difference with the third wave (the first half of this year).

By carrier, SK Telecom users pay 37,000 won, 4,000 to 5,000 won more than that of LG Telecom users (33,000 won) and KTF users (32,000 won). In the 2nd wave, KTF and LGT users were found to pay the almost same price range of 31,000 won. However, in the 3rd wave, LGT users were paying about 300 won more than KTF users. The difference became larger to 1,000 won in this wave (Sep. 2006) between charges of LGT and KTF.

A large portion of the mobile phone bill is taken up by voice calls, additional services, and wireless Internet. The reason behind SKT’s high bill can be explained by the higher use of additional services and wireless Internet.

SKT users’ additional service usage rate is 68.2% which is 4 % higher than LGT users and 6 % higher than KTF users. The wireless Internet usage rate of SKT users is 56.2%, 5% higher than that of KTF users and even 10 % higher than LGT users. Likewise, SKT subscribers use the service more frequently (0.8 to 1 time). Their active use of mobile phone may have caused the higher charge.

Looking at the mobile phone charge by age group, the 20s age group was found to pay the highest bill of 44,516 won, 17,ooo won more than that of the 10s age group who paid the least (27,487 won). 74.0% of the 20s age group used additional services, which was 8.5% higher than the total. High usage rate of additional services and wireless Internet also seemed to have affected the steeper price for those in 20s.

As MNP (Mobile Number Portability) is enforced, consumers now can switch carriers anytime to their likings without having to change their phone number. To prevent their customers to leave and secure new ones, the carriers are trying to develop a wide choice of additional and wireless Internet services. The 20s age group spends at least 10,000 won more a month than others. Therefore, it is not too much to say that a carrier’s profitability depends on the number of customers they have.

Marketing Insight, Inc. is a marketing information company providing regular large-scale syndicated studies and consulting services with expertise in mobile telecommunications, automobiles, home appliances, and government elections. Our services are differentiated from other marketing information companies by our focus on CPQ (Consumer Perceived Quality) measurement and improvement.

This Telecom Report is the result of a large-scale syndicated survey on telecommunication services and handsets with a sample size of over 100,000 and which has been conducted twice a year (in March and September) since 2005. All the rights over the content, results, and analysis concerning this study are reserved to Marketing Insight, Inc. No portion of the content may be used for commercial purposes by any means without a written notice from Marketing Insight Inc.

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