¡¯Mobile phone cost hearing¡¯ instead of Yoo Young-min? ¡¦ Witnesses to be mobile operator CEOs
Jung Yoon Hee | yuni@ | 2017-07-03 11:45:15

This month provisional session of National Assembly to decrease mobile phone cost

Although, the government has issued a `plan to cut telecommunication costs`, which aims to raise the rate discount (optional contract) discount rate corresponding to the subsidy for mobile phone subscriptions, and to introduce a universal fare system, various obstacles are continuing to appear. The three mobile operators have entered into a judicial review with administrative litigation in mind, and the mobile phone and telecommunication industries are facing a `survival crisis`. Consumer groups are also pouring out a disgruntled voice claiming that they have retreated from the so called ¡®abolishment of base fee¡¯ pledge.

Meanwhile, a provisional session of the National Assembly will be held from July 4, and a hearing on the candidate Yoo Young-min, minister of Ministry of Science, ICT and Future Planning will be held. In the case of Yoo Young-min, the CEO of mobile operator and CEO of mobile phone makers such as Samsung Electronics and LG Electronics were all witnesses. Besides, the provisional session in July is considered to be the last chance to deal with the amendment of the handset distribution structure improvement law (Law to restrict phone subsidies), which is another pledge, such as the abolition of the ceiling on the ceiling on the subsidy.

According to the related industry on July 2, Yoo Young-min¡¯s hearing is likely to be a so called ¡®Mobile phone cost hearing¡¯.

In fact, National Assembly Future Creation Science Broadcasting and Communications Commission¡¯s four parties have adopted a large number of business witnesses related to household telecommunication rate cuts. However, only a handful of career witnesses were candidates. Kwak Chang-ho as a witness, the POSCO Management Research Institute representative has been summoned as a reference to Kim Bong-man, director of the FKI freedom and creative education center. Some concerns have been raised after the nomination. However, most of them are due to the lack of clear evidence.

Meanwhile, Park Jung-ho, SK Telecom president, Hwang Chang-gyu, KT president, and Kwon Young-soo, LG U Plus vice president will state their stance on abolishing the base fee and reducing household telecom costs. Besides, Kwon Oh-hyun, a CEO of Samsung Electronics and Cho Song-jin LG Electronics CEO, were summoned as witnesses to confirm opinions on the abolition of base fees and the completely self-sufficiency of mobile phones. It is unusual for the National Assembly to adopt a major corporate CEO as a witness to the future ministerial candidate hearing. Although CEO of mobile operators has often been invited as a witness to the state inspection to verify policy issues, it was rarely adopted as a witness to a hearing to verify the ministerial candidate`s qualifications.

Meanwhile, the industry is not happy about that. In the face of industry backlash against countermeasures to cut mobile phone costs is because of concern that the hearing is actually being used as a means to press down mobile phone costs. An industry expert said, "We ask for comments on mobile phone cost cuts, but in the end, it is not a place to pressure the business." Another expert also pointed out, "We are concerned that (the hearing) will result in the company being treated as a sinner and inciting anti-corporate sentiment to the people."

Some people argue that the National Assembly should focus its efforts on dealing with the welfare bill at the July special session of the National Assembly, which will be held from July 4 to 18. It is argued that the law should be passed in the provisional session of the National Assembly in July if it is expected to abolish the ¡®ceiling of the subsidy¡¯ scheduled for sunset at the end of September. Although the mobile phone bill is a representative `public welfare bill` that affects all citizens, it is criticized that the National Assembly is delaying it. The agency only held a general meeting to confirm the hearing schedule for Yoo Young-min`s candidacy on June 27, the last day of the special session of the National Assembly in June.

As of July 2, the total number of amendments to the current law is 17 cases. Termination of the ceiling on the subsidy, introduction of the separation announcement, the introduction of a penalty ceiling along with an increase in the discount rate for the selected contract. Among them, the early abolition of the cap on the ceiling and the introduction of the separation announcement are President Moon Jae-in`s pledge. The Green Consumer Council stated the discussion of the household`s mobile phone expenses for the agency for three years after the enactment of the law was in fact paralyzed and claimed that even if the government cuts the mobile phone cost, the National Assembly can discuss the bill. A parliament representative stated, "It is hard to discuss the bill immediately due to the fact that the hearing is on the verge of reality. However, we will be able to discuss the bill if the provisional session of the National Assembly is held in July ~ August."


By Jung Yoon Hee yuni@


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