Separate LTE deals announced, from 67,000 to 85,000 won. (April. 3. 2014)
LG U+ yesterday launched the nation’s first unlimited mobile service package, a move was echoed later in the day by SK Telecom and KT, which both announced that they would offer a similar service.
The move follows a massive business suspension imposed on the nation’s top three mobile operators for offering excessive subsidies, and some observers say it may put an end to the era in which operators compete to offer the best discounts.
At a press conference held at Westin Chosun Hotel, central Seoul, LG U+ Vice Chairman Lee Sang-cheol said the nation’s third-largest mobile carrier is offering a service plan with unlimited voice calls, messaging and LTE data for 80,000 won ($75.62) and 85,000 won.
Samsung Electronics said Thursday it could possibly reduce shipments of Galaxy S5 (S5) smartphones to SK Telecom (SKT) to penalize it for its “unauthorized” release of the firm’s latest cellphone.
However, it remains to be seen if Samsung truly wants to opt for punitive measures, considering SKT is the largest vendor and any reduction in supplies could negatively affect the sales of its latest device.
Between last January and February, all high-cost smartphones were sold at 1/3 of the original price. This news made people line up in the midnight. People said this situation as Subsidy crisis. This crisis was stopped by suspension, a disciplinary action. Even though the telecommunication firms got penalty, it has made customers and retailers be threatened their living.
Since the Ministry of Science, ICT and Future Planning imposed business suspensions on the nation’s three mobile carriers for offering illegal subsidies, consumers have flocked to thrifty phone stores.
Korea Post in Gwanghwamun, central Seoul, was crowded yesterday morning with consumers looking for thrifty cell phones and service that is about 40 percent cheaper than existing mobile carriers.
On 21 march, Korea's three mobile carriers has promised to stop providing customers with illegal subsidies after getting hit with 10 million dollars in fines and minimum 45-day business suspension.
(Sorry for this video is in Korean) Members of the Korea Mobile Distributors Association call on the government to cancel the business suspension of telecommunication companies in Jongno, Seoul, March 13.
An increasing number of people have been turning to underground channels that provide access to subsidized mobile phones. Such channels enable consumers to buy new models at significantly cheaper prices, so consumers wonder why the government thinks such subsidies are bad. Well, the reason is here; the price of the phone depends on where to buy and when to buy, stemming from the telecom company's subsidy practices. Consider the typical below example.
On the topic of Business suspension for mobile carriers, this video has an interview with Dr. Kim byoung-joo, following to this order; brief summary of suspension, the predictable social impacts and suggestions.