Korea's KCC probes illegal subsidies again

Dylan Bushell-Embling
14 Jun 2013
00:00

Korean regulators have reportedly launched yet another probe into mobile operators' use of illegal handset subsidies to attract new users.

The Korea Communications Commission launched the probe after operators allegedly exceeded the legal limit on promotional offers during the Buddha's birthday long weekend last month, JoongAng Daily said.

The regulator asserts that during the first three days of June, an average of 32,440 mobile users switched networks per day, suggesting that the market is too competitive.

This action marks the latest in a line of investigation into whether KT, SK Telecom and LG U+ are exceeding the 270,000 won ($240) handset subsidy cap in their offers.

In January, the regulator temporarily banned all three operators from signing up new customers and issued a combined 11.89 billion won in fines as penalties for exceeding the limit.


The subsidy cap was first introduced in 2010 as part of a curb on promotional spending designed to break up a price war between the three operators.

KT, SK Telecom and LG Uplus this week separately agreed to a KCC proposal to cut one-off new user subscription fees by 40% this year, and abolish the fees altogether by 2015.

Related content

Follow Telecom Asia Sport!
Comments
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.