In an attempt to propel long-term subscriber growth, SK Telecom Co Ltd. (SKM) has launched a range of unlimited 4G LTE (Long Term Evolution) plans. The new options are effective immediately.
SK Telecom’s existing T&All 75 + Unlimited Data Option (8GB), T&All 85 (12 GB) and T&All 100 (16 GB) LTE customers will be able to enjoy additional 2GB data above their specified allowance for free. Even if they use up that additional data, they will be able to stay connected for no extra cost, but the network speed will decline.
Further, T&All customers will be able to make unlimited intra and inter network voice calls for free, while T&All 85 and T&All 100 customers will enjoy an added option of unlimited mobile to fixed line voice calls.
Apart from these data options, SK Telecom has launched two new unlimited tariff plans for data users at KRW 9,000 ($8.46) and KRW 3,500 ($3.29). The KRW 9,000 plan allows unlimited data usage between the peak hours of 7–9 A.M. and 6–9 P.M. According to SK Telecom, data traffic consumption is the highest during these times, with volumes constituting as much as 20% of the daily total.
Moreover, the KRW 3,500 Data Double Options deducts 50% of the data consumed during a day by customers. These options will attract customers who consume high data by watching sports games and recorded programs.
The company’s LTE business continues to grow based on strong smartphone offering and network expansion. 2013 was an inspiring year for the South Korean operator in terms of subscriber growth. Subscribers grew 1.4% year over year to 27.35 million with a net addition of 391,000 customers. The number of LTE subscribers reached 13.5 million at the end of the fourth quarter.
Additionally, SK Telecom also stands as a world leader in commercializing LTE roaming services and plans to invest approximately KRW 2.1 trillion ($1.98 billion) by 2014 in LTE network technologies. The booming IPTV business will further boost its LTE business and the company has already rolled out the T Sports pack and B TV mobile pack to offer affordable video services to its customers.
SK Telecom currently carries a Zacks Rank #1 (Strong Buy). Other stocks worth considering are Shenandoah Telecommunications Co. (SHEN) and Level 3 Communications Inc. (LVLT) –also Zacks Ranked #1 – and AT&T Inc. (T), with a Zacks Rank #2 (Buy).