Korea Communications Commission ‘without leader’ for a month already…Galaxy S8, market problem by ‘subsidy chaos reoccurrence’
Jung Yoon Hee | yuni@ | 2017-05-09 13:55:26
It has been a month since Korea Communications Commission operation without its head. The commission is continuing its operation without chairman since Choi Sang-jun’s retirement on April 7.
The mobile telecom market shook by `Galaxy S8 subsidy’ during this period. The so-called `subsidy crisis`, which had been hiding down from the surface since the implementation of the handset distribution structure improvement law, has recurred due to the lack of regulatory authorities. Although the Korea Communications Commission has been working on stabilizing the market, there is an assessment that this crisis is actually a warning from inside and outside the industry.
As of the May 8, the Korea Communications Commission has three members of the standing committee, which has the requirement to hold a full meeting. However, there is no plan to hold a full conference. The general meeting of the Korea Communications Commission can be held when three or more of the five standing committees, including the chairperson, attend. The Korea Communications Commission held the last full meeting on March 24. On the same day, vice chairman Kim Jae-hong and standing committee member Lee Gee-joo retired, and then left the post of chairman Choi Sung-joon. Although Kim Seok-jin was reappointed and Kim Yong-soo, were appointed after the controversy, the situation got worse. The Korea Communications Commission underwent a controversy due to the dispute over internal affairs for acting as chairman of the acting president, Hwang Gyu-ahn administration. Currently, Kim Seok-jin, Kim Yong-soo, and Ko Sam-seok, standing committee members, are holding individual events such as a vice minister meeting and attendance ceremonies.
Although The Korea Communications Commission is in the position that it is carrying out daily tasks such as monitoring the illegal subsidies focusing on the office, the market seems to be in fact experiencing regulation gaps. Especially, in last holiday season, the number of number portability has skyrocketed. The number portability is a representative indicator of the intensity of competition among mobile operators. In the past two or three days, the `Galaxy S8` has suffered a `big deal` with an illegal subsidy of KRW 500,000 to KRW 600,000 and the actual purchase price has dropped to the late KRW 100,000 level. However, the number of total number portability during the first 7 days increased by 23% from the same period last year (1 ~ 7 days) to 125,639 cases.
As the number portability service is expected to be halted on May 12 ~ 15 due to the computerized reorganization of mobile carriers, there is a concern about the subsidy competition again. SK Telecom has decided to stop number portability in order to prevent confusion by stopping customer services such as subscription and termination from 8 pm, May 11 to noon, May 15.
In the meantime, both the inside and outside of the Korea Communications Commission are expected to be able to estimate the timing of normalization of the committee after the presidential election on May 9. A representative of the Korea Communications Commission mentioned, "The Parliament will recommend a successor to the Commission since the Korea Communications Commission should be normalized after the presidential election.”
However, in some cases, it is expected that the Korea Communications Commission will normalize its operation only after mid-June. It is expected that a similar organization will be established within the political circle immediately after the inauguration of the new president. Also, during this period, it is expected that every government ministries will appoint their ministers after appointing new Cheongwadae minister. As the ministerial-level director general of the Korea Communications Commission also has to go through a hearing, it is early in the mid-June that the vacant position can be filled.
Also, the Korea Communications Commission may disappear based on the direction of the reorganization of the government organizations in the new government. In the presidential election process earlier, the Korea Communications Commission has been set up a variety of reforms including the Media Commission (tentative name). Even if the Korea Communications Commission maintains its own structure, it is still unclear which ministries will be in charge of regulating market functions.
By Jung Yoon Hee yuni@
[ copyright ⓒ The Digitaltimes ]
The mobile telecom market shook by `Galaxy S8 subsidy’ during this period. The so-called `subsidy crisis`, which had been hiding down from the surface since the implementation of the handset distribution structure improvement law, has recurred due to the lack of regulatory authorities. Although the Korea Communications Commission has been working on stabilizing the market, there is an assessment that this crisis is actually a warning from inside and outside the industry.
As of the May 8, the Korea Communications Commission has three members of the standing committee, which has the requirement to hold a full meeting. However, there is no plan to hold a full conference. The general meeting of the Korea Communications Commission can be held when three or more of the five standing committees, including the chairperson, attend. The Korea Communications Commission held the last full meeting on March 24. On the same day, vice chairman Kim Jae-hong and standing committee member Lee Gee-joo retired, and then left the post of chairman Choi Sung-joon. Although Kim Seok-jin was reappointed and Kim Yong-soo, were appointed after the controversy, the situation got worse. The Korea Communications Commission underwent a controversy due to the dispute over internal affairs for acting as chairman of the acting president, Hwang Gyu-ahn administration. Currently, Kim Seok-jin, Kim Yong-soo, and Ko Sam-seok, standing committee members, are holding individual events such as a vice minister meeting and attendance ceremonies.
Although The Korea Communications Commission is in the position that it is carrying out daily tasks such as monitoring the illegal subsidies focusing on the office, the market seems to be in fact experiencing regulation gaps. Especially, in last holiday season, the number of number portability has skyrocketed. The number portability is a representative indicator of the intensity of competition among mobile operators. In the past two or three days, the `Galaxy S8` has suffered a `big deal` with an illegal subsidy of KRW 500,000 to KRW 600,000 and the actual purchase price has dropped to the late KRW 100,000 level. However, the number of total number portability during the first 7 days increased by 23% from the same period last year (1 ~ 7 days) to 125,639 cases.
As the number portability service is expected to be halted on May 12 ~ 15 due to the computerized reorganization of mobile carriers, there is a concern about the subsidy competition again. SK Telecom has decided to stop number portability in order to prevent confusion by stopping customer services such as subscription and termination from 8 pm, May 11 to noon, May 15.
In the meantime, both the inside and outside of the Korea Communications Commission are expected to be able to estimate the timing of normalization of the committee after the presidential election on May 9. A representative of the Korea Communications Commission mentioned, "The Parliament will recommend a successor to the Commission since the Korea Communications Commission should be normalized after the presidential election.”
However, in some cases, it is expected that the Korea Communications Commission will normalize its operation only after mid-June. It is expected that a similar organization will be established within the political circle immediately after the inauguration of the new president. Also, during this period, it is expected that every government ministries will appoint their ministers after appointing new Cheongwadae minister. As the ministerial-level director general of the Korea Communications Commission also has to go through a hearing, it is early in the mid-June that the vacant position can be filled.
Also, the Korea Communications Commission may disappear based on the direction of the reorganization of the government organizations in the new government. In the presidential election process earlier, the Korea Communications Commission has been set up a variety of reforms including the Media Commission (tentative name). Even if the Korea Communications Commission maintains its own structure, it is still unclear which ministries will be in charge of regulating market functions.
By Jung Yoon Hee yuni@