KCC Receives Amendment Proposal for Mobile Subsidy Act Enforcement Decree... "Efforts to Promote Subsidy Competition"

Inducing Subsidy Competition Among Telecom Companies
Subsequent Ministry Consultations and Cabinet Meeting Approval

Kim Hong-il, Chairman of the Korea Communications Commission [Image source=Yonhap News]

The Korea Communications Commission (KCC) is promoting amendments to the enforcement decree prior to the abolition of the Act on the Improvement of Distribution Structure of Mobile Communication Terminals (DanTongBeop) to induce subsidy competition among mobile carriers.

On the 21st, the KCC held a plenary meeting at the Government Complex Gwacheon and received and accepted a proposal to establish an exception clause to Article 3 of the enforcement decree (Types and standards of unfair discriminatory subsidies) that encourages voluntary subsidy competition among mobile carriers.

The amendment introduces an exception standard allowing mobile carriers to provide subsidies according to the payment criteria based on subscription types determined and announced by the KCC, considering the expected profits of mobile carriers and the switching costs of users.

The KCC plans to apply the amended enforcement decree after public notice, consultation with related ministries, regulatory review, KCC resolution, review by the Ministry of Government Legislation, and approval by the Deputy Prime Minister’s meeting and the Cabinet meeting.

Kim Hong-il, Chairman of the KCC, said, "Since the abolition of DanTongBeop requires cooperation from the National Assembly, we have amended part of the enforcement decree to create conditions that can activate marketing competition among carriers even before the law is abolished."

He added, "Through this amendment to the enforcement decree, we expect to activate voluntary subsidy competition among carriers, thereby effectively reducing the cost of device purchases for the public. We will continue efforts to promote voluntary subsidy competition among carriers in the future."