LG Uplus, the smallest mobile carrier in South Korea, recently received criticism from Apple regarding its marketing strategy for the iPhone (News - Alert) 6 and iPhone 6 Plus.
Due to a past disagreement between LG and Apple regarding radio frequencies, LG Uplus is unable to provide 3G-based network services on Apple (News - Alert) devices and instead highlights its Voice over LTE (VoLTE) capabilities. VoLTE, a critical component of the long-term evolution of 4G wireless technology, presents a standardized system for transferring voice data over LTE networks and is quickly gaining popularity among operators, carriers and consumers.
KT (News - Alert) Telecom and SK Telecom, the two other operators in the country that sell iPhones, offer iPhones that work on both 3G and LTE data networks despite claims from LG Uplus’ marketing efforts that they are limited to 3G. An anonymous representative from LG spoke with the Korea Times about the matter, explaining:
“Apple asked LG Uplus to immediately correct its excessive marketing to sell more iPhones since LG began taking orders for the two Apple devices. LG Uplus said in its homepage that it is the only local carrier to provide VoLTE service in iPhones, and added SK Telecom (News - Alert) and KT customers should visit customers' centers to utilize VoLTE in iPhones. That notification was suddenly corrected due to a request by Apple as this is against the fact and also taints Apple's corporate image.”
The company’s aggressive and misleading marketing techniques have caused unrest amongst retailers as well, who struggle to explain details of the technology to consumers.
“I have no option but to follow orders from Uplus’ marketing personnel to promote more iPhones within the LG networks,” said one such retailer from the Yongsan Electronics Market in Seoul, the country’s largest marketplace for electronics. “I have to admit that Uplus has been consistent in making noises by blaming others and overly highlighting its networks since it has begun taking preorders.”
Customers drawn in by LG Uplus’ promises are also quite disenchanted with their results, especially citing poor coverage and call quality.
“Quality of voice calling within 3G networks is better than that within the LTE (News - Alert) network,” the retailer continued. “If LG's LTE networks get into trouble, then Uplus customers will be blocked from having voice calling. Uplus customers should use its LTE networks in cases of calling and data-downloading. But KT and SK Telecom customers have two options ? calling within the 3G networks and data-downloading with LTE networks or both.”
LG Uplus has not announced any plans to adjust its marketing strategy despite Apple’s complaint. However, Apple representatives have stated that it is quite unlikely that the company will guarantee any more iPhone shipments to the LG unit, presenting a perfect example of how businesses always lose when they resort to unscrupulous market tactics.
Edited by Alisen Downey