Korean regulator to ask operators to cut marketing costs

bealtine

Tuesday 8 September 2009


Korea's telecommunications regulator will ask operators to decrease their marketing costs to ensure lower rates for consumers. The Korea Communications Commission (KCC) plans to ask the mobile operators to provide lower rates. The companies are heavily subsidising subscribers in a bid to win market share. The government may have to take a more active role in the telecommunications industry, the Korea Times reports citing KCC official Shin Yong-seop. On average, marketing expenses for the company's major operators went up by 28 percent year-on-year. The KCC is looking at a number of ways to force the operators to lower their rates, such as banning handset subsidies, boosting the number of prepaid options, and allowing MVNOs on the market. SK Telecom, KT and LG Telecom said strong government intervention will hurt their profits and drag down the country's telecommunications industry