Promotion of Competition in the Telecommunications Market
Consumer Benefits Continue
On the 26th, the "Act on the Improvement of Distribution Structure for Mobile Communication Terminal Devices Repeal Bill" (Mobile Terminal Distribution Act Repeal Bill) was passed in the National Assembly plenary session. Photo by Kim Hyun-min
The bill to abolish the Act on the Improvement of Terminal Distribution Structure (DanTongLaw) passed the National Assembly plenary session on the 26th. As a result, competition for terminal subsidies in the mobile communication market is expected to be promoted, and consumer fee discount benefits will be maintained.
According to the bill passed by the National Assembly, provisions that restrict competition among operators under the current DanTongLaw will be deleted, and necessary regulations for protecting user rights and creating a sound distribution environment will be transferred to the Telecommunications Business Act.
While the burden of purchasing terminals for consumers will be reduced, the conditions for free competition of subsidies among operators are expected to be revitalized.
Looking closely at the bill, the obligation for mobile carriers to disclose terminal subsidies and the regulation on the upper limit of additional subsidies by distribution stores (within 15% of the disclosed subsidy) will be abolished.
Also, the provision prohibiting unfair subsidy discrimination based on subscription type and rate plans will disappear, allowing operators to implement various marketing strategies that can provide benefits to users.
The selective discount system, which offers fee discount benefits to users who do not receive subsidies, will be maintained. The government plans to ensure that the current level of fee discount benefits (25%) is provided to consumers.
The Korea Communications Commission will strengthen monitoring of unfair practices in the market and plan to prevent user damages in the future.
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