Fair Trade Commission Fixes Mobile Phone Plans and Distribution

This article is translated by AI company Flitto and Alhpa Biz neural machine translation technology

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stockmk2020@alphabiz.co.kr | 2023-02-20 05:10:24

공정거래위원회. 사진= 연합뉴스

[Alpha Biz=(Chicago) Reporter Kim Jisun] The Fair Trade Commission is conducting market analysis to promote competition in the mobile phone terminal distribution market, which is highly dependent on the three mobile carriers, SK Telecom, KT, and LG U+.

According to the government authorities on the 19th, the Fair Trade Commission plans to analyze the competition situation and regulatory status of the mobile phone terminal distribution market this year and come up with measures to promote competition. The Fair Trade Commission has been conducting preemptive market analysis every year to improve the monopoly market structure. This year, we will look at the mobile phone terminal distribution market, which is strongly influenced by the three telecommunication companies.

In Korea, it is common for mobile carriers to sell mobile phone terminals to consumers through dealerships and retailers. At this time, consumers can receive a discount on the price of the terminal as a public subsidy or a discount on the usage fee of the mobile communication service in the future through an optional agreement.

Accordingly, the Fair Trade Commission plans to place an order for research services to analyze the mobile phone terminal distribution market as early as next month. In addition, the government will push for a revision of the law to increase the upper limit of additional subsidies for mobile phone terminals from 15 percent to 30 percent of public subsidies.

It will also monitor whether the three telecommunication companies unfairly discriminate against subsidiaries and non-subsidiaries among MVNO operators.

The Fair Trade Commission will soon review allegations that three telecommunication companies falsely and exaggeratedly advertised that 5G speed was 20 times faster than LTE (violation of the Display Advertising Act).

 


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