Meeting between KCC, 3 Mobile Carriers, and Manufacturers Held on the 22nd
Industry Responds to KCC's Request with "Cooperation on Transition Subsidies"
Promises to Expand Official Subsidies and Offer Mid-Low Priced Plans and Devices
The three mobile carriers and device manufacturers responded positively to the Korea Communications Commission's request for cooperation on the transition subsidy policy.
On the 22nd, at the Press Center in Jung-gu, Seoul, Kim Hong-il, Chairman of the Korea Communications Commission, and related officials are taking a commemorative photo at the meeting between the Chairman of the Korea Communications Commission and CEOs of telecommunications companies and device manufacturers. From the left: No Tae-moon, President of Samsung Electronics; Hwang Hyun-sik, CEO of LG U+; Kim Hong-il, Chairman of the Korea Communications Commission; Yoo Sang-young, CEO of SK Telecom; Kim Young-seop, CEO of KT; Ahn Cheol-hyun, Vice President of Apple Korea. Photo by Joint Press Corps
On the afternoon of the 22nd, the Korea Communications Commission announced that Chairman Kim Hong-il held a meeting at the Press Center in Jung-gu, Seoul, with Yoo Sang-young, CEO of SK Telecom; Kim Young-seop, CEO of KT; Hwang Hyun-sik, CEO of LG Uplus; No Tae-moon, President of Samsung Electronics; and Ahn Cheol-hyun, Vice President of Apple Korea. This was the first meeting between Chairman Kim and the representatives of each company since his inauguration.
At the meeting, Chairman Kim stated, "The public's expectations and demands for telecommunication services are very high, and with rising prices and high interest rates, stabilizing people's livelihoods is urgent," and requested the cooperation of businesses regarding the recently introduced transition subsidy policy.
In response, the three mobile carriers and manufacturers were understood to have shown a positive reaction to the transition subsidy policy. Ban Sang-kwon, Market Research Commissioner, said in a back briefing, "The three mobile carriers have agreed to actively cooperate with the transition subsidy policy," and added, "Manufacturers also said they would cooperate to some extent through consultations with the carriers."
Regarding the initial focus of the transition subsidy support on high-priced plans and devices, Commissioner Ban said, "Support will start with high-priced (devices and plans) at first, but then it is expected to expand to mid-range prices," and added, "Past subsidy competitions followed a similar pattern."
Yu Young-sang (left), CEO of SK Telecom, and Kim Young-seop, CEO of KT, are conversing at the meeting between the Chairman of the Korea Communications Commission and representatives of telecommunications companies and device manufacturers held on the 22nd at the Press Center in Jung-gu, Seoul. Photo by Joint Press Corps
However, the Korea Communications Commission refrained from giving a clear answer on the targeted level of increase for the transition subsidy. Commissioner Ban said, "The level of increase is decided between manufacturers and carriers, so it is difficult to specify a figure," and added, "We hope the decided figure will be at a level that the public can feel."
In addition to the transition subsidy, discussions were held on the introduction of mid-range plans, expansion of official subsidies, and the release of mid-range devices. Park Dong-joo, Director of the Broadcasting and Communications User Policy Bureau, said, "SKT and LG Uplus have also decided to announce 5G mid-range plans, and regarding the expansion of official subsidies, manufacturers and carriers have agreed to consult." KT has already launched a 5G mid-range plan priced in the 30,000 KRW range.
Director Park also said, "Device manufacturers have agreed to review plans for the early release of mid-range devices." However, it is known that Apple did not make any explicit remarks regarding mid-range devices.
Meanwhile, the three carriers requested the Korea Communications Commission to raise its voice regarding the Fair Trade Commission's investigation into collusion in sales incentives. The Korea Communications Commission recently submitted an official opposition statement to the Fair Trade Commission, which has been investigating collusion among the three carriers for over a year.
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