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Mobile carriers ask govt. to rethink subscription cost cut drive
By a2016032Published : May 29, 2017 - 09:23
South Korea's three mobile carriers are trying to persuade lawmakers and government officials to rethink President Moon Jae-in's pledge to cut subscription costs to ease households' burden, industry sources said Monday.
The move came as the Moon administration seeks to abolish the basic subscription fees of 11,000 won ($9.83) as expenditures on telecommunication services were cited as one of the burdens for South Koreans. Mobile carriers cast concern that the change will hurt their operations and earnings that are critical for future investments.
Sources said SK Telecom Co., KT Corp. and LG Uplus Corp. each created offices devoted to government-related issues with staffs of around 80 to 100, and they are currently focusing their efforts to cope with the chief executive's pledge.
The companies are also contacting officials from the Ministry of Science, ICT and Future Planning, as well as the National Assembly's Future Planning, Science, Broadcasting and Communications Committee, the sources added.
The companies claim they are already committed to developing next-generation mobile networks, and that the abolishment of the basic fee will make it harder to meet global trends. They pointed out companies around the world are making a push to introduce fifth-generation communication technology.
While the public in general are cheering future cuts in subscription fees, other industry watchers said it is more advisable to lower the overall service price of carriers through competition rather than seeking policy changes.
"The public's attention regarding the abolishment of the basic fee is growing," a local mobile carrier official said. "All employees, including the top management, are considering the unfolding situation as an emergency." (Yonhap)
