Mobile phone fee can be decreased by proper frequency usage
Na Won Jae | nwj@ | 2017-06-26 10:55:45
It is pointed out that the price quotations of quasi-tranquility which Korean mobile operators pay for the frequency bands and the fee for frequency are being used improperly, instead of welfare facilities usage for national communication such as reduction of communication costs and improvement of communication infrastructure.
The Korean government`s broadcasting and telecommunication development fund and information and telecommunication promotion fund, which are mainly funded by the mobile operator`s frequency allocation fee and frequency usage fee, are about KRW 1.4 trillion a year. Among them, the cost of communication users was about KRW 240 billion last year, only 17%. It is expected that this year will also be reduced to about KRW 200 billion. Because the frequency allocation fee and the frequency fee charged by the mobile operators are all included in the cost of the communication of the people, the frequency tax paid by the people is not properly used for the purpose to improve the communication welfare. This is the reason why the government insists that it will not lower the burden on the national telecommunication cost to the government budget and fund, but only to private companies.
Mobile operators claim that they should reduce the double taxation regulation, stating that only one of the two options in countries such as the United States, Japan, the UK, Germany, and the other major countries such as the UK, are paid.
Especially, it is stressed that the burden of frequency doubling has added to the pressure to cut the telecommunication cost. Also, it is inevitable that it will be forced to suffer from the tipping point.
According to the Ministry of Science, ICT and Future Planning, the amount of funds used to promote user rights such as communications support for the underprivileged and information production and telecommunication promotion funds are expected to increase from KRW 174.8 billion in 2013 to KRW 210.3 billion in 2014, and KRW 278.2 billion in 2015. It is expected to reach KRW 238.8 billion in 2016 and KRW 208.5 billion in 2017 (planned).
A representative of the Ministry said, "The frequency allocation fee is included in the two funds, and it is used in various fields such as R & D and manpower development of the broadcasting and communication field. The frequency fee is transferred to the general accounting resource of the Ministry of Strategy and Finance and used in other fields. In the case of the radio wave fee, the registration department should find out the benefit of the users, but I think that there is no actual effort yet. "
Broadcast communications development fund, which spends KRW 600 billion annually, is funded by a variety of mobile operators such as mobile carrier frequency allocation fee (70%), terrestrial broadcaster ad sales (15%), home shopping and paid-TV operators (15%). More than one-third of the total cost of the project is spent KRW 200 billion on annual basis to support terrestrial broadcasters. The frequency fund is flowing to the wrong place.
Meanwhile, the mobile operation cost burden is increasing year by year. In the case of domestic frequency allocation fees, all three mobile operators paid a total of KRW 173.3 billion in 2007. However, this year they all paid KRW 844.2 billion, up about 5 times. In addition, the mobile phone charges about KRW 240 billion of radio wave every year, so the frequency cost is estimated to reach KRW 1.80 trillion a year. The frequency allocation fee for the fifth generation (G) mobile communication that will be available in the second half of next year is expected to be much higher due to the wide frequency range.
As a result of comparison of mobile tax items of major foreign countries, the United States, Britain and Germany pay only the frequency allocation fee, and Japan only distributes the radio use fee.
A representative of a mobile operator said, "The fact that the frequency allocation fee and the double taxation levy on the use of radio waves have increased the burden of the communication expenses of the users. Tax decrease plans should be made instead of forceful guidance in order to rationalize the government`s reduction of communication costs.”
By Na Won Jae nwj@
[ copyright ⓒ The Digitaltimes ]
The Korean government`s broadcasting and telecommunication development fund and information and telecommunication promotion fund, which are mainly funded by the mobile operator`s frequency allocation fee and frequency usage fee, are about KRW 1.4 trillion a year. Among them, the cost of communication users was about KRW 240 billion last year, only 17%. It is expected that this year will also be reduced to about KRW 200 billion. Because the frequency allocation fee and the frequency fee charged by the mobile operators are all included in the cost of the communication of the people, the frequency tax paid by the people is not properly used for the purpose to improve the communication welfare. This is the reason why the government insists that it will not lower the burden on the national telecommunication cost to the government budget and fund, but only to private companies.
Mobile operators claim that they should reduce the double taxation regulation, stating that only one of the two options in countries such as the United States, Japan, the UK, Germany, and the other major countries such as the UK, are paid.
Especially, it is stressed that the burden of frequency doubling has added to the pressure to cut the telecommunication cost. Also, it is inevitable that it will be forced to suffer from the tipping point.
According to the Ministry of Science, ICT and Future Planning, the amount of funds used to promote user rights such as communications support for the underprivileged and information production and telecommunication promotion funds are expected to increase from KRW 174.8 billion in 2013 to KRW 210.3 billion in 2014, and KRW 278.2 billion in 2015. It is expected to reach KRW 238.8 billion in 2016 and KRW 208.5 billion in 2017 (planned).
A representative of the Ministry said, "The frequency allocation fee is included in the two funds, and it is used in various fields such as R & D and manpower development of the broadcasting and communication field. The frequency fee is transferred to the general accounting resource of the Ministry of Strategy and Finance and used in other fields. In the case of the radio wave fee, the registration department should find out the benefit of the users, but I think that there is no actual effort yet. "
Broadcast communications development fund, which spends KRW 600 billion annually, is funded by a variety of mobile operators such as mobile carrier frequency allocation fee (70%), terrestrial broadcaster ad sales (15%), home shopping and paid-TV operators (15%). More than one-third of the total cost of the project is spent KRW 200 billion on annual basis to support terrestrial broadcasters. The frequency fund is flowing to the wrong place.
Meanwhile, the mobile operation cost burden is increasing year by year. In the case of domestic frequency allocation fees, all three mobile operators paid a total of KRW 173.3 billion in 2007. However, this year they all paid KRW 844.2 billion, up about 5 times. In addition, the mobile phone charges about KRW 240 billion of radio wave every year, so the frequency cost is estimated to reach KRW 1.80 trillion a year. The frequency allocation fee for the fifth generation (G) mobile communication that will be available in the second half of next year is expected to be much higher due to the wide frequency range.
As a result of comparison of mobile tax items of major foreign countries, the United States, Britain and Germany pay only the frequency allocation fee, and Japan only distributes the radio use fee.
A representative of a mobile operator said, "The fact that the frequency allocation fee and the double taxation levy on the use of radio waves have increased the burden of the communication expenses of the users. Tax decrease plans should be made instead of forceful guidance in order to rationalize the government`s reduction of communication costs.”
By Na Won Jae nwj@