Altteulpone Association President: "Permanent Wholesale Supply Obligation Without Government Intervention Is Useless"

Afternoon of the 8th, Korea Altteul Communication Cooperative Press Conference
"No Legislation in Place to Promote Altteul Phone Business"

Kim Hyung-jin, chairman of the Korea Mobile Virtual Network Operator Association (KMVNO), raised his voice that the government should still play a role in the data policy where MVNOs purchase wholesale data to sell to subscribers. At the end of last year, the Telecommunications Business Act was amended, allowing MVNOs to purchase voice, data, and other communication services at wholesale prices from market-dominant mobile network operators (MNOs) on an ongoing basis. However, until now, the government has participated in wholesale price negotiations on behalf of the operators, but from next year, the operators must negotiate directly. Chairman Kim is interpreted as requesting the government to continue to act on behalf of the industry, which lacks bargaining power.

Kim Hyung-jin, chairman of the KMVNO Association, is speaking at a press conference held on the afternoon of the 8th. Photo by Hwang Seo-yul chestnut@

Chairman Kim (also chairman of Sejong Telecom) said at a KMVNO press briefing held on the 8th at a hotel in Jung-gu, Seoul, "Although the three-year sunset clause for the wholesale provision obligation has been made permanent, if the policy requires deciding the network wholesale price through consultation with the three MNOs, the policy is essentially meaningless."

He added, "There is no proper legislation to promote and encourage the MVNO business," and emphasized, "If MVNO-related policies continue to be distorted, I plan to step down from the chairman position at the regular board meeting in February next year."

MVNO operators attending the briefing complained that increasing cost burdens are making it difficult to operate their businesses. A representative from Priteel said, "Issues such as MVNO number portability fees and other costs keep arising," and "Although the wholesale price rate was reduced two years ago, operators are still unable to secure profitability." The Korea Telecommunications Operators Association decided to impose an additional fee of 2,800 KRW per case on MVNOs for number portability within 90 days of subscription starting this month.

Some operators also expressed concerns about the entry of financial institutions into the MVNO market. A representative from Smartel said, "As banks are now able to operate MVNO businesses, the position of small and medium MVNO operators is shrinking," and "Despite our insistence that MVNO plans should not be sold below the wholesale price (cost), such discussions are emerging, causing serious concern."