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2013 Consumer Behavior Project Summary
-The Mobile Handset subsidies Regulation issue-
1. The background and descriptions of the issue
These days, the smartphone markets have been highly saturated. Mobile Handset Subsidies was introduced in 1996 which is that the tele-communication firms pay a part of cellphone fee for attracting customers. However, the regulation was abolished in 2009 because the regulation was excessive government intervention in the business activities of the private operators. Currently, the regulation is in effect only in case of user discrimination occurs. The Korea Communications Commission (KCC) judges it illegality in case of the subsidies excessing 27thousand won(242 dollars.
In the narrow market, the competition among the tele-communication companies has been overheated. As a result, Mobile Handset Subsidies Regulation appeared to solve these problems. Recently, this issue is reoccurred because the (KCC) regulate Mobile Handset…(생략)
2. The pro-side/positive aspects of the issue
3. The con-side/negative aspects of the issue
4. Conclusion
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mer benefits.
3. The con-side/negative aspects of the issue
First of all, in case of Subsidies, there is no effective regulation and there is a possibility of unconstitutionality. Also, the regulation hinders the operators from reducing secession customer because of mandatory contract period-12 to 24 months and impedes increasing the new service using such as 4G recently. Additionally, the regulation decreases the advantage over the terminal manufacturers by increasing consumption of the newest cellphone.
4. Conclusion
Government should establish a clear legal basis because the regulation works arbitrarily without the legal basis. Next, government need to concentrate their energy on improving the payment plan like overseas case rather than regulating the subsidies because regardless of the regulation, the operators and manufacturers will chop their own ice.
REFERENCES
1. [정보통신정책연구 제18 권 제 4 호 (2xxx. 12) pp.81-108]
2. http://news.naver.com/main/read.nhnmode=LSD&mid=sec&sid
The Mobile Handset subsidies Regulation issue1.docx
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