Member number to show smooth increase after 5 years …Flat phone to be alive
Kang Eun Seong | esther@ | 2017-11-15 11:00:36
This year`s subscriber base is expected to decrease. It is the first time since the launch of the phone business in 2012.
According to the Ministry of Science and Technology, Ministry of Information and Communication and the telecommunication industry, the number of mobile phone numbers dropped by 76,613 in October this year.
The number of subscribers increased steadily for the third consecutive year since the number of subscribers increased by 864,252 in 2014. However, net subscriber additions are expected to decline this year.
"It is virtually impossible to regain 74,000 subscribers to three mobile carriers for two months, although the cumulative figures for October and November and December still remain. It will be the first year since the start of the business). "
The flat phone phone is a MVMO that rents the communication network of the mobile communication company and provides communication products with its own brand.
Meanwhile, the advantage is that the service can be provided at a low price instead of making huge capital investments. The government is actively nurturing the phone business as another alternative to cut telecom costs.
However, as the number of smartphone subscribers continues to decline, the industry has come to the brink of survival. Homeplus, which has been attracting attention as a major operator due to its abundant financial power and sales base, will completely evacuate its mobile phone business by the end of this month. Other retailers are reportedly seriously considering withdrawing the phone business, which is lacking in `business merit`.
On the other hand, the primary reason is `dissatisfaction with flat phone`. Consumers who subscribe to the flat phone phone at a low rate are returning to the existing mobile communication service due to the somewhat uncomfortable service after the `due date` is over.
However, the flat phone industry claims that it is seriously threatened with the best strength of a cheap phone called `cheap rate`.
"This year`s wholesale price (net rent) negotiations took five months, and 2017 was only a month and a half, and now the negotiations have been completed," said a high-ranking official of a one- "It was."
The official said, "We complain about the difficulties that the negotiations will be delayed." "It is a question of whether the last 10 months will be retroactive." "The worse thing is that we should do this negotiation again next year."
The wholesale price negotiations for the wholesale phone have recently been completed after last five months since it started in June.
However, it did not reach the expectation that the profit distribution ratio that was originally planned as a national task was 10% point adjustment. The revenue should improve service and customer response infrastructure, which means that the business strategy itself has been ruined because the negotiation of the most important network rent was not concluded until November. According to the Korea Federation of Telecommunications Business Associations, the cumulative deficit in the flat phone industry has exceeded 3 trillion won by the end of 2016.
The Korean government`s policy to cut telecommunication costs is also a matter of concern. As a result, the discount rate on the discount rate has been revised upward since September 15, which is a serious situation. The `universal fare system`, which provides unlimited voices for KRW 20,000 and monthly data of 1GB, is a `threat of life` to the handsets.
A high-ranking official in the industry said, "If the universal service plan is implemented, there is no reason for the business to survive." It is hard to make a judgment that it is a sustainable business because the market environment that can generate profits is not enough and "He said.
By Kang Eun Seong esther@
[ copyright ⓒ The Digitaltimes ]
According to the Ministry of Science and Technology, Ministry of Information and Communication and the telecommunication industry, the number of mobile phone numbers dropped by 76,613 in October this year.
The number of subscribers increased steadily for the third consecutive year since the number of subscribers increased by 864,252 in 2014. However, net subscriber additions are expected to decline this year.
"It is virtually impossible to regain 74,000 subscribers to three mobile carriers for two months, although the cumulative figures for October and November and December still remain. It will be the first year since the start of the business). "
The flat phone phone is a MVMO that rents the communication network of the mobile communication company and provides communication products with its own brand.
Meanwhile, the advantage is that the service can be provided at a low price instead of making huge capital investments. The government is actively nurturing the phone business as another alternative to cut telecom costs.
However, as the number of smartphone subscribers continues to decline, the industry has come to the brink of survival. Homeplus, which has been attracting attention as a major operator due to its abundant financial power and sales base, will completely evacuate its mobile phone business by the end of this month. Other retailers are reportedly seriously considering withdrawing the phone business, which is lacking in `business merit`.
On the other hand, the primary reason is `dissatisfaction with flat phone`. Consumers who subscribe to the flat phone phone at a low rate are returning to the existing mobile communication service due to the somewhat uncomfortable service after the `due date` is over.
However, the flat phone industry claims that it is seriously threatened with the best strength of a cheap phone called `cheap rate`.
"This year`s wholesale price (net rent) negotiations took five months, and 2017 was only a month and a half, and now the negotiations have been completed," said a high-ranking official of a one- "It was."
The official said, "We complain about the difficulties that the negotiations will be delayed." "It is a question of whether the last 10 months will be retroactive." "The worse thing is that we should do this negotiation again next year."
The wholesale price negotiations for the wholesale phone have recently been completed after last five months since it started in June.
However, it did not reach the expectation that the profit distribution ratio that was originally planned as a national task was 10% point adjustment. The revenue should improve service and customer response infrastructure, which means that the business strategy itself has been ruined because the negotiation of the most important network rent was not concluded until November. According to the Korea Federation of Telecommunications Business Associations, the cumulative deficit in the flat phone industry has exceeded 3 trillion won by the end of 2016.
The Korean government`s policy to cut telecommunication costs is also a matter of concern. As a result, the discount rate on the discount rate has been revised upward since September 15, which is a serious situation. The `universal fare system`, which provides unlimited voices for KRW 20,000 and monthly data of 1GB, is a `threat of life` to the handsets.
A high-ranking official in the industry said, "If the universal service plan is implemented, there is no reason for the business to survive." It is hard to make a judgment that it is a sustainable business because the market environment that can generate profits is not enough and "He said.
By Kang Eun Seong esther@