Meeting between Minister of Science and ICT and CEOs of 3 Major Telecoms on the 13th
Discussion on Discount Subscription System and Budget Phones Related to Communication Costs
3 Major Telecoms Request "Fair Trade Commission to Review Collusion Investigation"
The representatives of the three mobile carriers (SKT, KT, LG Uplus) met with Yoo Sang-jae, Minister of Science and ICT, and promised to launch an integrated LTE·5G plan next year in response to the issue of LTE rates being more expensive than 5G. LTE plans that are more expensive than 5G plans will be discontinued for new subscriptions.
On the 13th, at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, during the meeting between the Minister of Science and ICT and the CEOs of the three major telecom companies, (from left) Yoo Young-sang, CEO of SKT, Yoo Sang-im, Minister of Science and ICT, Kim Young-seop, CEO of KT, and Hwang Hyun-sik, CEO of LG Uplus, are taking a commemorative photo. Photo by Ministry of Science and ICT
At the meeting between the Minister of Science and ICT and the CEOs of the three mobile carriers held on the 13th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, Yoo Sang-yang, CEO of SKT; Kim Young-seop, CEO of KT; and Hwang Hyun-sik, CEO of LG Uplus, announced that they will launch an integrated LTE·5G plan next year. Starting with KT’s implementation of the integrated plan in the first quarter of next year, SKT and LG Uplus will also establish a settlement system and implement it.
Earlier, during the National Assembly’s Science, Technology, Information and Broadcasting Committee (STIBC) audit, concerns were raised about the reversal phenomenon where LTE plans are more expensive than 5G plans. Kim Young-seop, CEO of KT, who appeared as a witness, responded, "We will integrate the 5G and LTE plans as soon as possible."
The three carriers currently plan to stop new subscriptions to LTE plans that are more expensive than 5G plans within this year. However, to prevent consumer harm, if users wish to keep their existing plans, they can continue to use them.
After the meeting, Ryu Je-myung, Director of the Network Policy Office, said at a briefing, "When restructuring plans, we have ensured that consumers who do not want to move to a new plan can continue using their existing plans until they choose to discontinue them. We plan to apply this approach in this case as well to prevent unintended harm."
On the 13th, at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, Yusang-im, Minister of Science and ICT, is delivering opening remarks at the meeting between the Minister of Science and ICT and the CEOs of the three major telecom companies. Photo by Ministry of Science and ICT
Regarding the issue of many users not subscribing to the Selective Discount System (a system that offers a 25% discount on the basic communication fee instead of a public subsidy), improvements to the system will be pursued. The three carriers are currently analyzing the reasons for non-subscription from a practical perspective.
Regarding the situation where subsidiaries of the three carriers dominate the budget phone market, Minister Yoo and the CEOs of the three carriers confirmed a consensus to enable budget phone companies to become genuine competitors to the three carriers. Director Ryu stated, "We will organize policies related to the fourth mobile carrier within the year and will also provide detailed information regarding budget phone policies." The carriers also expressed willingness to cooperate on wholesale price reductions.
The three carriers requested regulatory relaxation and tax benefits related to artificial intelligence (AI), which they are promoting as a new business. Specifically, they requested government-level cooperation and support for tax incentives for AI development and issues related to power supply and regulations for AI data centers. The carriers promised to continue investing in AI while also maintaining network investments such as improving 5G quality indoors and in rural and fishing villages.
The three carriers requested that the Ministry of Science and ICT look into the Fair Trade Commission’s investigation into collusion regarding sales incentives, to which Minister Yoo responded, "We are fully consulting with related agencies and understand the situation."
Meanwhile, Minister Yoo told reporters after the meeting, "The three carriers are definitely willing to invest in AI," adding, "However, the AI Basic Act (implementation) or the creation of a playing field where the private sector can enter the AI domain needs to be expedited." When asked if he believes the AI Basic Act could pass within the year, he replied, "I think so."
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