South Korean Government Imposes Discounts on Mobile Phone Subscribers
From Staff Reports
SK Telecom (SKM), a SK Group subsidiary, took a cue from the U.S.-based Verizon Communication Inc. (VZ) by lowering rates for calls made from one SK Telecom subscriber to another — providing they agree to a 2,500 won ($2.70) increase in their monthly bill.
SK Telecom is the largest mobile carrier in South Korea, followed by KT Freetel Co. Ltd. and LG Telecom Ltd., who both oppose the government-suggested plan, claiming the discount system will strengthen SK Telecom’s market share, the Korea Times reported. However, they may likely follow suit in fear of losing more customers to SK Telecom, which already receives subscription checks from half of South Korea’s cell phone users.
You won’t hear any complaints from SK Telecom, however.
“While fee revenues will fall, the on-net discount system will boost our number of new subscribers and prevent existing subscribers from moving to other operators,” an SK Telecom official told the Korea Times.
However, all three companies agreed to government-guided subscription contracts for teens — called “Green Contracts” — that are expected to substantially reduce their mobile phone bills, the Ministry of Information and Communication reported.
Also, all three companies agreed to discount plans for seniors and disabled citizens.
