The telecom industry is urging a shift in communication policy focus from reducing fees and expanding service providers to promoting investment in future networks as the era of artificial intelligence (AI) unfolds. Experts suggest that a new revenue model is needed that ensures network quality—such as latency, security, and stability—rather than just data usage.
On September 17, a seminar titled 'Challenges for the Telecom Industry in the Age of AI Transition (AX) and 6G' was held at the Press Center in Jung-gu, Seoul, organized by Korea University's Center for Technology Law and Policy.
Dr. Lee Jong-kwan from the law firm Sejong, who presented at the seminar, warned that the spread of AI could become the second major burden on networks following the rise of over-the-top (OTT) services. He noted, "Existing internet traffic has been predominantly driven by video consumption, leading to a high proportion of downloads. In contrast, the AI era will see users uploading large amounts of data, including images, videos, and audio, to servers while continuously exchanging information with AI, which will increase upload traffic as well."
According to market research firm Omdia, AI traffic is expected to increase 48 times and AI-related traffic by 3.6 times from 2025 to 2030. By 2030, AI-based traffic is projected to account for approximately 64% of total traffic.
In contrast, the actual cost of 1 Gbps internet has decreased from 38,500 won in 2014 to 31,124 won in 2025, a drop of 19.2%. The average revenue per user (ARPU) for the three major telecom companies has also fallen from 31,103 won in 2019 to 28,746 won in 2025, a decrease of 7.6%.
Dr. Lee emphasized, "While domestic telecom policy has historically prioritized competition and fee reductions, it now needs to consider the sustainability of network investments and industrial competitiveness. We must move away from the outdated perception that telecom companies are already highly profitable."
During the subsequent discussion, participants argued that the focus of domestic telecom policy should shift from current priorities of fee reduction, expanding service providers, and user protection to future network investment and securing industrial competitiveness. They highlighted that in the AI and 6G era, telecom companies must ensure network quality in terms of ultra-low latency, stability, security, prioritization, and connectivity while receiving compensation for these services.
The three major telecom companies—SK Telecom, KT, and LG Uplus—unanimously stressed the need for a policy shift towards investment and innovation. Shin Sang-min, Vice President of SK Telecom, stated, "Current telecom policy places too much emphasis on fee reductions and expanding the number of service providers. As budget mobile operators have already become a major competitive force, we need to transition from quantitative growth focused on subscriber expansion to qualitative growth centered on service and technology differentiation."
To achieve this, he proposed expanding voluntary negotiations between mobile network operators (MNOs) and mobile virtual network operators (MVNOs) and reducing government intervention in the wholesale market. He also called for a joint effort between the government and telecom companies to transition from legacy markets, such as the termination of 3G services.
Concerns were raised about the disconnect between telecom companies' network investments and the resulting revenues. KT Executive Director Seo Eun-il pointed out, "Telecom companies bear the costs of network investments, but the resulting profits are going to platform and content providers. We need to launch quality-assured services first and then implement a regulatory framework to assess their impact." He added that strategic infrastructure, such as 6G frequencies, undersea cables, and low-orbit satellites, requires tax and financial support as well as the creation of public demand.
There were also calls to improve the low profitability of the telecom industry. LG Uplus Executive Director Lee Kyu-hwa stated, "We need to relax regulations that make it difficult for the three telecom companies to differentiate their pricing, allowing for greater autonomy in pricing design while still protecting general users."
In response, the Ministry of Science and ICT indicated that it is considering promoting network investment as a key direction for telecom policy, in addition to maintaining fair competition and user protection. Nam Seok, Director of Telecom Policy at the ministry, stated, "We are looking to seriously consider investment promotion as one of our policy directions. We are currently discussing with telecom companies how to transition existing legacy networks and promote investment in next-generation infrastructure through a newly formed public-private consultative body."
He added, "As satellite, undersea cables, cloud, and AI are interconnected into a single ecosystem, we need a comprehensive legal and institutional framework that goes beyond the existing Telecommunications Business Act, as well as a system for cooperation and coordination among service providers."
* This article has been translated by AI.
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