Fair Trade Commission to start mobile carrier ‘mobile cost collusion’ investigation…Omni-directional pressure on mobile carriers
Kang Eun Seong | esther@ | 2017-08-10 11:21:24
[Digital Times, Kang Eun-song] The Fair Trade Commission has started so called a `collusion` survey on similar mobile plans for SK Telecom, KT, and LG U Plus. Nowadays the government is strongly pushing for `mobile cost reduction`, along with the Ministry of Science, Technology, and Information, which is the main office of the Ministry of Science and Technology.
◇ According to the telecommunication industry, the FTC has recently notified the three mobile carriers that it has informed the investigation of the suspicion of fixing the telecommunication rate plan. It also looks at whether the price of the Universal Subscriber Identity Module (USIM), which has been controversial recently, is collapsing. Besides, the 2012 FTC and the maker of mobile phone makers and mobile phone makers to inflate 40% of the profit due to gain FTC issued a correction order on the issue of the review.
The Korea Fair Trade Commission reported that SK Telecom, KT, and LG U Plus in the survey, the price plan and the price fixing of the invisible price, interviews with related practitioners, and confirmation of data are being conducted.
The allegations of the three mobile operators have been raised steadily, mainly by civic groups. Previously, the KCWA headquarters also reported suspicions of collusion with the FTC in May. The FTC stated that it is difficult to recognize that the price is similar to that of a fixed price, so it will be checked in various ways to see if there is any prior consultation related to the fixing. However, the direct research plan was not materialized, and the PSPG stated that the investigation plan was insufficient and issued a statement urging further investigation.
Accordingly, the investigation revealed that the Fair Trade Commission`s (FTC). Especially, the survey suggests that it may be possible to overturn the existing stance that it is difficult to conclude whether collusion is based solely on similar prices in the industry. In fact, FTC is currently analyzing whether the price of tickets for multiplex cinema and the price of popcorn in the last year have been fixed. It is based on the fact that it is in fact a collusion to maintain a similar rate tacitly even if the firm does not collate through prior consultation. This three telecom fare plan is likely to flow in a similar fashion to the surveys of movie fee plans.
◇ Reduction of telecommunication charges, all-round pressure = Meanwhile, the FTC has taken the field survey `KAL` for suspicion of fixing the telecommunication charges.
The Ministry of Information and Communication has been pushing up the `discount rate on selective contracts` as the first policy to cut telecommunication costs in accordance with the Korean government`s commitment. In particular, mobile carriers claim that it is unconstitutional to set the rate discount rate as a government notice, and that there is no legal basis for setting an upward rate.
A lawyer stated, "If there is a legal dispute based on the allegations of mobile carriers, there is no advantage in terms of the government. If mobile carriers try to file a lawsuit and file a disposition, it may be lost."
In this situation, the FTC`s investigation into the price fixing situation could be another pressure on the three companies.
"The Free Trade Commission survey and the mobile cost reduction policy of the Ministry of Information and Communication are separate policies," an expert in the mobile industry said. "However, the government`s stance on cutting mobile costs is clear, so it is a way to maximize government influence over mobile carriers."
By Kang Eun Seong esther@
[ copyright ⓒ The Digitaltimes ]
◇ According to the telecommunication industry, the FTC has recently notified the three mobile carriers that it has informed the investigation of the suspicion of fixing the telecommunication rate plan. It also looks at whether the price of the Universal Subscriber Identity Module (USIM), which has been controversial recently, is collapsing. Besides, the 2012 FTC and the maker of mobile phone makers and mobile phone makers to inflate 40% of the profit due to gain FTC issued a correction order on the issue of the review.
The Korea Fair Trade Commission reported that SK Telecom, KT, and LG U Plus in the survey, the price plan and the price fixing of the invisible price, interviews with related practitioners, and confirmation of data are being conducted.
The allegations of the three mobile operators have been raised steadily, mainly by civic groups. Previously, the KCWA headquarters also reported suspicions of collusion with the FTC in May. The FTC stated that it is difficult to recognize that the price is similar to that of a fixed price, so it will be checked in various ways to see if there is any prior consultation related to the fixing. However, the direct research plan was not materialized, and the PSPG stated that the investigation plan was insufficient and issued a statement urging further investigation.
Accordingly, the investigation revealed that the Fair Trade Commission`s (FTC). Especially, the survey suggests that it may be possible to overturn the existing stance that it is difficult to conclude whether collusion is based solely on similar prices in the industry. In fact, FTC is currently analyzing whether the price of tickets for multiplex cinema and the price of popcorn in the last year have been fixed. It is based on the fact that it is in fact a collusion to maintain a similar rate tacitly even if the firm does not collate through prior consultation. This three telecom fare plan is likely to flow in a similar fashion to the surveys of movie fee plans.
◇ Reduction of telecommunication charges, all-round pressure = Meanwhile, the FTC has taken the field survey `KAL` for suspicion of fixing the telecommunication charges.
The Ministry of Information and Communication has been pushing up the `discount rate on selective contracts` as the first policy to cut telecommunication costs in accordance with the Korean government`s commitment. In particular, mobile carriers claim that it is unconstitutional to set the rate discount rate as a government notice, and that there is no legal basis for setting an upward rate.
A lawyer stated, "If there is a legal dispute based on the allegations of mobile carriers, there is no advantage in terms of the government. If mobile carriers try to file a lawsuit and file a disposition, it may be lost."
In this situation, the FTC`s investigation into the price fixing situation could be another pressure on the three companies.
"The Free Trade Commission survey and the mobile cost reduction policy of the Ministry of Information and Communication are separate policies," an expert in the mobile industry said. "However, the government`s stance on cutting mobile costs is clear, so it is a way to maximize government influence over mobile carriers."
By Kang Eun Seong esther@