LG HelloVision continues to face challenges in revitalizing its budget mobile virtual network operator business. Despite a broader growth trend in South Korea’s budget mobile market, the company’s subscriber growth and revenue have shown minimal improvement. In the past year, LG HelloVision’s budget mobile revenue increased slightly to 156.7 billion won (approximately $118 million), up just 0.4% from 156.1 billion won (around $117 million) the previous year.
The budget mobile sector remains a crucial revenue stream for LG HelloVision, contributing about 10% of total sales. However, the company’s performance has stagnated, with subscriber growth slowing significantly. As of the first half of last year, the budget mobile subscriber base, which includes internet-of-things lines, reached approximately 770,000, an increase of only 20,000 from the prior year.
Market Dynamics and Competitive Pressures
Industry analysts attribute LG HelloVision’s struggles to several factors, including limited gains from a rise in number transfers following a significant telecommunications hacking incident last year. The three major wireless carriers in South Korea launched aggressive marketing strategies to attract subscribers, effectively diminishing the spillover effect that smaller operators like LG HelloVision aimed to capture.
LG Uplus, the parent company of LG HelloVision, reported approximately 21.7 million mobile subscribers last year, reflecting a 6.6% increase from around 20.4 million in the previous year. Its mobile service revenue rose to 6.67 trillion won (about $5.01 billion), compared to 6.43 trillion won (approximately $4.83 billion) previously. An industry official noted that LG Uplus, perceived as less affected by the hacking fallout, absorbed a significant portion of the subscriber switching demand through its marketing efforts.
Analysts also point to LG HelloVision’s cautious approach to new pricing strategies and promotional offerings as a contributing factor to the ongoing downturn. The company has experienced profitability pressures, with its core pay television business growth stagnating. After achieving an operating profit in the range of 40 billion won in 2023, its profitability has dropped to around 10 billion won over the past two years.
Plans for Revitalization
In an effort to stimulate subscriber growth, LG HelloVision plans to introduce a new promotion coinciding with the upcoming launch of the Samsung Electronics Galaxy S26 smartphone series. Customers who purchase a Galaxy S26 device and sign up for one of LG HelloVision’s plans will receive a 30,000 won (approximately $23) gift certificate. Additionally, subscribers to the Coupon Pack plan will earn extra coupons valued at 120,000 won (about $90).
The company is also implementing artificial intelligence features to enhance the sign-up process. Users visiting its website can enter their preferences and receive tailored plan recommendations along with summaries of customer reviews, aiming to attract a more engaged customer base.
Despite these efforts, analysts caution that competition with the major wireless carriers will likely persist. Another wave of substantial smartphone subsidies is anticipated this year, particularly from KT, which reportedly lost a significant number of subscribers earlier due to waived penalty fees for certain customers. Given the competitive landscape of the budget mobile market, experts suggest that LG HelloVision may need to concentrate on low-cost promotional plans and specialized offerings tailored to specific customer segments to regain traction in a challenging environment.
