Mobile telecommunications revenue is flat
||2026.02.23
The wireless communication revenue of the three mobile carriers remained virtually flat last year. As the effect of expanding 5G subscribers reached its limit, the average sales per subscriber remained unchanged. SK Telecom, KT, and LG Uplus acknowledge the slowdown in communication growth and plan to speed up expansion of non-communication businesses such as artificial intelligence (AI).
The average sales per mobile service subscriber (ARPU) in the fourth quarter of last year, excluding MVNO and Internet of Things (IoT), is 28,848 won (25.6 dollars) for SK Telecom, 35,335 won (35.6 dollars) for KT, and 35,999 won (35.6 dollars) for LG Uplus. ARPU is an indicator that evaluates a mobile carrier’s profitability by dividing its wireless revenue by the number of wireless subscribers.
SK Telecom’s ARPU fell 2.2 percent in the fourth quarter of last year compared to 29,495 won (25.6 dollars) in the fourth quarter of 2024. KT rose 2.2 percent from 34,567 won (35.6 dollars) to 35,335 won (35.6 dollars) in the same period. LG U+ rose 1.8 percent from 35,356 won (35.7 dollars) to 35,999 won (35.6 dollars). The gain was limited.
The reason why telecommunication companies’ ARPU is in place is that the telecommunication market has reached saturation. The Ministry of Science and ICT’s current status of subscription to wired and wireless communication services and wireless data traffic statistics (as of the end of December 2025) total 5G subscribers amount to 38.459,644. It is far ahead of 4G telecommunication (LTE) of 18.62 million and 3G mobile communication of 375,565.
In 2019, when 5G was commercialized, telecommunication companies actively encouraged LTE customers to switch to 5G and conducted marketing. As more LTE customers use 5G, the sales of telecommunication companies also increased. Currently, demand for 5G conversion has been largely exhausted. It is difficult to increase profits significantly only by introducing additional subscribers.
The three telecom service providers, which suffered a setback in their credibility due to hacking accidents last year, are focusing on expanding their new businesses including artificial intelligence (AI) this year. SK Telecom, KT, and LG Uplus will participate in Mobile World Congress 2026 to unveil their AI strategies.
An industry official said, “The annual marketing costs that the three telecommunications companies can execute in the telecommunications sector are already fixed at a certain level,” adding, “It is not easy to grow only by expanding subscribers.”
fun3503@chosunbiz.com
