Sub brand phone-Mobile carrier network in dispute due to wholesale price
Jong Ye Lin | yeslin@ | 2018-04-10 11:02:25
The Korean government is anticipating a sharp conflict between the mobile phone industry and the mobile telecommunication industry, which has been providing the network and mobile phone industry in the year ahead of last year, when the wholesale price negotiations of flat phones are dragged to the end of the year. In particular, the government has begun to lower its own tariffs, which are claimed to be the problem of the survival right due to the introduction of the universal fares, and the recent massive investment in 5G mobile communications (5G) Concerns over prolonged life last year are being raised.
According to the industry on April 9, the sub brand phone and mobile carrier have already been disagreeing over how to calculate net wholesale prices. The wholesale price of the flat-screen phone is RM, which is based on voice, text, and data usage, and RS, which gives a certain percentage of sales to mobile operators.
In the case of the LTE phone industry, LTE plans are based on the RS system, which means that some of the sales should be given to mobile operators. On the other hand, Lee Yong-tae`s position is that there is no problem in that it can autonomously select RM or RS in the case of an apartment phone renting an LTE network. "Around 60 to 70 percent of the LTE pricing released by the mobile carrier industry is using the RM method," an industry source said. Currently, CJ Hello`s `condition-less USIM 1G` and `islands 15` are calculated by RM method.
The opinions of both sides about the return of the RS method are also mixed. The argan phone industry claims that it is too high because it maintains 40 ~ 55% of current RS wholesale price. The Korea Federation of Telecommunications Business Associations (KCACS) asked the Ministry of Science, Technology, and Information (MIC) Currently, the wholesale price calculation is based on negotiations between the government and SK Telecom, a provider of network obligations. An agency official said, "We have cut rates every year, and we are already lowering our prices." The actual wholesale price of RS fell from 56.4% in 2016 to 49.2% last year.
The controversy does not end only with the RS method. This is because the two sides disagree with each other in the RM system, which is preferred over the RS system. Recently, the mobile phone industry has argued that the wholesale price of data from mobile operators is too high. This is because mobile telcos have higher data costs than tablet PCs and smart devices sold directly to consumers.
Currently, the wholesale price per data provided by the mobile phone service provider is 4.51 won per 1MB. Lee said that wholesale prices cannot be compared with specific rates. This is because it is calculated by applying a certain discount rate to the average retail price according to RM standards.
Some of the smartphone industry has proposed a cost-plus calculation method. The cost-based method is a method of adding net profit to certain costs. An industry expert said, "This will not only require the revision of the telecommunication business law and the notifications, but the introduction of telecommunication companies and calculation methods has not been discussed.
By Jong Ye Lin yeslin@
[ copyright ⓒ The Digitaltimes ]
According to the industry on April 9, the sub brand phone and mobile carrier have already been disagreeing over how to calculate net wholesale prices. The wholesale price of the flat-screen phone is RM, which is based on voice, text, and data usage, and RS, which gives a certain percentage of sales to mobile operators.
In the case of the LTE phone industry, LTE plans are based on the RS system, which means that some of the sales should be given to mobile operators. On the other hand, Lee Yong-tae`s position is that there is no problem in that it can autonomously select RM or RS in the case of an apartment phone renting an LTE network. "Around 60 to 70 percent of the LTE pricing released by the mobile carrier industry is using the RM method," an industry source said. Currently, CJ Hello`s `condition-less USIM 1G` and `islands 15` are calculated by RM method.
The opinions of both sides about the return of the RS method are also mixed. The argan phone industry claims that it is too high because it maintains 40 ~ 55% of current RS wholesale price. The Korea Federation of Telecommunications Business Associations (KCACS) asked the Ministry of Science, Technology, and Information (MIC) Currently, the wholesale price calculation is based on negotiations between the government and SK Telecom, a provider of network obligations. An agency official said, "We have cut rates every year, and we are already lowering our prices." The actual wholesale price of RS fell from 56.4% in 2016 to 49.2% last year.
The controversy does not end only with the RS method. This is because the two sides disagree with each other in the RM system, which is preferred over the RS system. Recently, the mobile phone industry has argued that the wholesale price of data from mobile operators is too high. This is because mobile telcos have higher data costs than tablet PCs and smart devices sold directly to consumers.
Currently, the wholesale price per data provided by the mobile phone service provider is 4.51 won per 1MB. Lee said that wholesale prices cannot be compared with specific rates. This is because it is calculated by applying a certain discount rate to the average retail price according to RM standards.
Some of the smartphone industry has proposed a cost-plus calculation method. The cost-based method is a method of adding net profit to certain costs. An industry expert said, "This will not only require the revision of the telecommunication business law and the notifications, but the introduction of telecommunication companies and calculation methods has not been discussed.
By Jong Ye Lin yeslin@