Mobile carrier subsidy up in concern due to ‘25% fee discount’
Kang Eun Seong | esther@ | 2017-09-15 11:24:04
Users tend to choose fare discount more than terminal subsidy as the rate of discount is increasing. The mobile carriers are in the process of raising the `subsidy for handsets` as they are inevitably suffering a steady decline in profit rate as the rate discount rate increases.
According to the mobile phone industry on September 15, the percentage of subscriber discounts for 25% option contracts and a representative of the mobile carrier explained, "In case of Galaxy Note 8, which recently subscribed to the service, 90 % of the discount rate was selected." LG Electronics` V30 also showed an overwhelming proportion of choosing rate discounts in addition to the Galaxy Note 8.
It is more than twice as profitable as choosing a discount rate of 25% over the entire fare system for SK Telecom. KT and LG U Plus are also different. Subscribers are also aware of this situation, so they are choosing fare discounts rather than terminal subsidies.
Selection contracts as the rate of charge discounts surge, the concerns for the three YTP factories are growing. In the case of terminal subsidy, the `one-time` cost is included in the marketing expenses. However, the discount rate directly affects the profit decrease because the fee is caught by the operating profit. In particular, rate discounts will continue to impact revenues over the two-year commitment period. This is the reason why the government strongly rejected the government`s decision to raise the discount rate to the `lawsuit`.
It is reported that three mobile carriers are planning to increase the `disclosure allowance` strategically if the terminal subsidy ceiling is abolished at the end of this month. A high-ranking representative of a mobile carrier said, "The current subscription discount rate is higher than the subscription discount as the subscription rate is lower than the subscription discount rate. If the subscription fee is raised, subscribers who do not like the subscription contract, I will come. We are also considering a way to raise the subsidy rate when the ceiling on handset is abolished."
Meanwhile, he also said, "We need to pay the terminal subsidy to all purchasers nationwide at the same rate as the discount rate. Even it raises only KRW 10,000. It should endure a lot of subsidy from the company.” It is impossible to expect high-cost subsidies such as illegal subsidies of 500,000 to 600,000 won. "
Yoon Moon-yong, director of policy for green consumer solidarity policy, stated, "The original selection contract rate should be equivalent to the terminal subsidy, which is the same for the opposite case. The government should increase the amount of public subsidy to a corresponding level to guarantee consumers` choice and lower the burden of buying high-priced handsets. "
By Kang Eun Seong esther@
[ copyright ⓒ The Digitaltimes ]
According to the mobile phone industry on September 15, the percentage of subscriber discounts for 25% option contracts and a representative of the mobile carrier explained, "In case of Galaxy Note 8, which recently subscribed to the service, 90 % of the discount rate was selected." LG Electronics` V30 also showed an overwhelming proportion of choosing rate discounts in addition to the Galaxy Note 8.
It is more than twice as profitable as choosing a discount rate of 25% over the entire fare system for SK Telecom. KT and LG U Plus are also different. Subscribers are also aware of this situation, so they are choosing fare discounts rather than terminal subsidies.
Selection contracts as the rate of charge discounts surge, the concerns for the three YTP factories are growing. In the case of terminal subsidy, the `one-time` cost is included in the marketing expenses. However, the discount rate directly affects the profit decrease because the fee is caught by the operating profit. In particular, rate discounts will continue to impact revenues over the two-year commitment period. This is the reason why the government strongly rejected the government`s decision to raise the discount rate to the `lawsuit`.
It is reported that three mobile carriers are planning to increase the `disclosure allowance` strategically if the terminal subsidy ceiling is abolished at the end of this month. A high-ranking representative of a mobile carrier said, "The current subscription discount rate is higher than the subscription discount as the subscription rate is lower than the subscription discount rate. If the subscription fee is raised, subscribers who do not like the subscription contract, I will come. We are also considering a way to raise the subsidy rate when the ceiling on handset is abolished."
Meanwhile, he also said, "We need to pay the terminal subsidy to all purchasers nationwide at the same rate as the discount rate. Even it raises only KRW 10,000. It should endure a lot of subsidy from the company.” It is impossible to expect high-cost subsidies such as illegal subsidies of 500,000 to 600,000 won. "
Yoon Moon-yong, director of policy for green consumer solidarity policy, stated, "The original selection contract rate should be equivalent to the terminal subsidy, which is the same for the opposite case. The government should increase the amount of public subsidy to a corresponding level to guarantee consumers` choice and lower the burden of buying high-priced handsets. "
By Kang Eun Seong esther@