Preview of a contract upward… Mobile regulation issue storm expected
Kang Eun Seong | esther@ | 2017-08-21 10:51:04
■ Issue analysis, the government to put pressure on mobile fee cut…Mobile carriers in concern
[Digital Times, Kang Eun-seong] Despite strong opposition from three mobile carriers, which have raised concerns over administrative lawsuits, seem to be lowering their pace in light of a series of regulatory issues such as the launch of the universal rate plan for the monthly telecom cost reduction paunch, KRW 20,000 per month, combined regulation and 5G frequency allocation. If the government tries to comply with the lawsuits, it will have to face a disadvantage in terms of regulatory issues that will continue throughout the current regime.
On the afternoon of August 18, the Ministry of Information and Communication sent a letter of administrative disposition to three mobile telecommunication companies. From September 15, if the rate discount is selected instead of the handset subsidy, the discount rate of the selected contract rate is increased to receive the 25% discount, which was raised by 5% point from the previous 20%.
The upper limit of the discount rate is limited to new subscribers or subscribers. . Existing 20% discount rate subscribers are subject to the 25% discount rate in principle. However, users can get a 25% discount by canceling the current contract or renewing the contract after the contract expires in order to receive the 25% discount rate.
If a user cancels a contract, it may incur a penalty. Therefore, it is better for the user to decide whether to receive an additional discount is more profitable than the penalty.
"According to the current law, there is no way to force carriers to raise the rate discount rate for existing subscribers, and measures such as adjusting the rate discount rate of existing subscribers and reducing the burden of penalties should be based on the autonomy of mobile situation. " said Yang Hwan-jeong.
The three mobile carriers have entered emergency meetings to decide how to accommodate the government`s administrative disposition. The government is reviewing cases of administrative litigation and administrative disposition, but it cannot help but take into consideration the ups and downs that will be faced when `frontal confrontation` is held with regulatory authorities. In case of disposition application, it is required to apply within two weeks of disposition. Thus, mobile carriers will consider and watch it internally until the end of the month, which is the deadline for viewing the city as much as possible.
◇ There is a total of three policies for the government to cut mobile costs by pushing the launch of universal fares. Discount rates for vulnerable groups, discount rates for selected contracts, and universal rate plans as well. Expansion of the rate of reduction of the fee for the vulnerable group was announced on the 17th. By the end of the year, the maximum amount of discount for the vulnerable group is KRW 10,000 per month. After the controversy, the Ministry of Information and Communication of the Ministry of Economy, The last thing left is the launch of the universal rate plan of KRW 20,000 per month.
In June, the National Commission for Planning and Advisory Committee stated, "The benefits of mobile services competition are concentrated on high-priced services (the higher the price increases as the price goes up), and the low- This is a situation that leads to an increase in burden."
The National Planning and Consulting Advisory Committee has announced that it will launch a universal fleet with contents such as 200 minutes voice, 1GB of data, and data transfer at KRW 20,000 per month including VAT. The Ministry of Information and Communication also plans to amend the law to oblige the dominant operator (SK Telecom in case of mobile communication) to launch the universal rate plan.
The three mobile carriers are strongly opposed to this. A mobile expert said, "If the service is offered at the monthly rate of KRW 30,000 to 40,000 per month. It will be offered at KRW 20,000 per month. In this case, most subscribers of the mid to low price plan except for the infinite rate plan, will be transferred to the universal fare plan. The strike is bigger than the option discount. "
◇ Combined regulation & 5G frequency allocation in deep mountain = However, the rebellion of these carriers seems to lose power over the controversial choice contract rate. Besides, the discount rate has been raised without any additional negotiations such as reduction of the frequency allocation fee.
It is very unlikely that the Korean government will adhere to tough policies in its future policies as it has succeeded in realizing a strategy of `pushing` the business more strongly than `appealing` the business. As a result, the three mobile carriers are voicing their opposition strategy, saying that they should not die as much as the universal fare system.
Especially, there is an expectation that the issue of `combined regulation` on broadcast media platforms and other issues is waiting for next year from the end of the year, and next year, big regulatory issues such as 5G frequency allocation are waiting for the government to contend with the government.
The three mobile carriers, which were discussing lawsuits related to the actual selection contract discount, said that after the administrative disposition, they are ‘carefully considering whether to file lawsuits.’ The industry expects that the government will ‘push’ the policy without hurting the response of mobile carriers in the regulatory policy since the Ministry of Information and Communication has virtually won the election.
By Kang Eun Seong esther@
[ copyright ⓒ The Digitaltimes ]
[Digital Times, Kang Eun-seong] Despite strong opposition from three mobile carriers, which have raised concerns over administrative lawsuits, seem to be lowering their pace in light of a series of regulatory issues such as the launch of the universal rate plan for the monthly telecom cost reduction paunch, KRW 20,000 per month, combined regulation and 5G frequency allocation. If the government tries to comply with the lawsuits, it will have to face a disadvantage in terms of regulatory issues that will continue throughout the current regime.
On the afternoon of August 18, the Ministry of Information and Communication sent a letter of administrative disposition to three mobile telecommunication companies. From September 15, if the rate discount is selected instead of the handset subsidy, the discount rate of the selected contract rate is increased to receive the 25% discount, which was raised by 5% point from the previous 20%.
The upper limit of the discount rate is limited to new subscribers or subscribers. . Existing 20% discount rate subscribers are subject to the 25% discount rate in principle. However, users can get a 25% discount by canceling the current contract or renewing the contract after the contract expires in order to receive the 25% discount rate.
If a user cancels a contract, it may incur a penalty. Therefore, it is better for the user to decide whether to receive an additional discount is more profitable than the penalty.
"According to the current law, there is no way to force carriers to raise the rate discount rate for existing subscribers, and measures such as adjusting the rate discount rate of existing subscribers and reducing the burden of penalties should be based on the autonomy of mobile situation. " said Yang Hwan-jeong.
The three mobile carriers have entered emergency meetings to decide how to accommodate the government`s administrative disposition. The government is reviewing cases of administrative litigation and administrative disposition, but it cannot help but take into consideration the ups and downs that will be faced when `frontal confrontation` is held with regulatory authorities. In case of disposition application, it is required to apply within two weeks of disposition. Thus, mobile carriers will consider and watch it internally until the end of the month, which is the deadline for viewing the city as much as possible.
◇ There is a total of three policies for the government to cut mobile costs by pushing the launch of universal fares. Discount rates for vulnerable groups, discount rates for selected contracts, and universal rate plans as well. Expansion of the rate of reduction of the fee for the vulnerable group was announced on the 17th. By the end of the year, the maximum amount of discount for the vulnerable group is KRW 10,000 per month. After the controversy, the Ministry of Information and Communication of the Ministry of Economy, The last thing left is the launch of the universal rate plan of KRW 20,000 per month.
In June, the National Commission for Planning and Advisory Committee stated, "The benefits of mobile services competition are concentrated on high-priced services (the higher the price increases as the price goes up), and the low- This is a situation that leads to an increase in burden."
The National Planning and Consulting Advisory Committee has announced that it will launch a universal fleet with contents such as 200 minutes voice, 1GB of data, and data transfer at KRW 20,000 per month including VAT. The Ministry of Information and Communication also plans to amend the law to oblige the dominant operator (SK Telecom in case of mobile communication) to launch the universal rate plan.
The three mobile carriers are strongly opposed to this. A mobile expert said, "If the service is offered at the monthly rate of KRW 30,000 to 40,000 per month. It will be offered at KRW 20,000 per month. In this case, most subscribers of the mid to low price plan except for the infinite rate plan, will be transferred to the universal fare plan. The strike is bigger than the option discount. "
◇ Combined regulation & 5G frequency allocation in deep mountain = However, the rebellion of these carriers seems to lose power over the controversial choice contract rate. Besides, the discount rate has been raised without any additional negotiations such as reduction of the frequency allocation fee.
It is very unlikely that the Korean government will adhere to tough policies in its future policies as it has succeeded in realizing a strategy of `pushing` the business more strongly than `appealing` the business. As a result, the three mobile carriers are voicing their opposition strategy, saying that they should not die as much as the universal fare system.
Especially, there is an expectation that the issue of `combined regulation` on broadcast media platforms and other issues is waiting for next year from the end of the year, and next year, big regulatory issues such as 5G frequency allocation are waiting for the government to contend with the government.
The three mobile carriers, which were discussing lawsuits related to the actual selection contract discount, said that after the administrative disposition, they are ‘carefully considering whether to file lawsuits.’ The industry expects that the government will ‘push’ the policy without hurting the response of mobile carriers in the regulatory policy since the Ministry of Information and Communication has virtually won the election.
By Kang Eun Seong esther@