2024-02-15 13:06:48
Criticism is being raised that the policy to ease the burden of communication costs announced by the Ministry of Science and ICT on the 13th will not have much effect. The Ministry of Science and ICT said it would lower the lowest 5G rate plan to the 30,000 won range, but it is pointed out that not only the price but also the data provided should be examined. The 30,000 won 5G plan launched by KT last month provides 4GB of data, but the average consumer data usage is 28GB.
▲ Telecommunications agency in Seoul. ⓒYonhap News
On the 13th, the Ministry of Science and ICT announced its major business implementation plan for 2024 and revealed measures to ease household communication costs. Minister of Science and ICT Lee Jong-ho said, “We will contribute to stabilizing the people’s economy by easing the burden of communication fees, and revitalize competition by improving the oligopoly system in the communication market.” He added, “We will lower the minimum range of the 5G rate plan to 30,000 won.”
The Ministry of Science and ICT announced in November last year that it would allow telecommunication companies to launch 5G rate plans in the 30,000 won range within the first quarter of this year in the ‘Measure to Relieve the Burden of Communication Costs’. Accordingly, KT launched a plan last month that provides 4GB of data for 37,000 won per month. If you use all 4GB, your data speed will slow down. SK Telecom and LG U+ are also preparing rate plans in the 30,000 won range. Since telecommunication companies have been releasing similar rate plans, it is possible that SK Telecom and LG U+’s rate plans in the 30,000 won range are very similar to KT’s.
Questions are raised as to whether the 30,000 won rate plan can lead to easing the burden of communication costs. It is pointed out that it is difficult for a rate plan in the 30,000 won range to be of great utility due to the market structure of giving more public subsidies if you choose a high-priced plan. Kim Joo-ho, head of the People’s Livelihood Economy Team at the People’s Solidarity for Participatory Democracy, told Media Today, “If you use an expensive plan, you can receive a lot of public subsidies, but the subsidies set for plans in the 30,000 won range are bound to be low. Considering this situation, household communication costs will not be that low.” “It is,” he said.
Moreover, the 5G data provided when signing up for a 30,000 won plan is insufficient compared to the average data usage. According to the Ministry of Science and ICT, the average amount of data used by 5G subscribers per month is 28GB. Team Leader Kim said, “We use 28GB on average, so would a 4GB plan be helpful?” and added, “Providing a low-cost plan is not everything. “We need to review whether it is useful to consumers,” he said.
Jeong Ji-yeon, Secretary General of the Consumer Federation of Korea, told Media Today, “The government’s continued stance on communication costs can be evaluated positively,” but added, “A rate system that does not reflect consumer behavior is meaningless. He pointed out, “There must be a rate plan that matches the data usage patterns of 5G subscribers.” Nam Kyeong, head of the social policy team at the Citizens’ Coalition for Economic Justice, also told Media Today, “There needs to be a plan to reduce communication costs themselves, but reducing only the rate range may not have much of an effect.”
Related article ▲Photo = Pixabay.
There are mixed expectations and concerns regarding the government’s insistence on abolishing the Terminal Distribution Act (Dantong Act). The government announced on the 13th that it would revitalize business competition by abolishing the Single Tong Act, but did not mention any expected side effects, such as eliminating user discrimination due to the information gap.
Team leader Nam-jeong Nam said, “The abolition of the Single Tong Act appears to be a necessary measure, but since it is a matter of law revision, we must watch the discussion at the National Assembly.” He added, “The issue of equity is inevitable in the market. “Telecom companies should lower prices through competition, but raising overall costs by claiming it is discrimination is the wrong approach,” he said. Secretary-General Jeong Ji-yeon said, “The abolition of the Single Tong Act itself can be viewed positively, but it seems like the government is rushing in a situation where there are no safety measures in place.”
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