Korea moves towards scrapping basic mobile fees

The South Korean government is increasing pressure to scrap monthly basic mobile service charges to reduce phone bills for customers.

A presidential advisory committee has called on the Ministry of Science, ICT and Future Planning (MSIP) to draw up a plan for fulfilling these objectives.

The monthly basic charge is currently 11,000 won ($10). These fees have historically been key drivers for telecoms industry profitability.

A proposed abolition of basic monthly fees has been on the agenda for years, but the mobile sector has been opposed to the proposal, arguing that it could wipe out their profitability.

The report states an unnamed industry official as stating that there is currently no appropriate alternative to the basic fees, and asserting that a better solution would be increasing the benefits offered to individual groups of customers.

The hard-line stance marks an apparent reversal of the committee’s recent position that it is important that the interests of both the industry and customers are taken into account when evaluating reforms to regulations covering mobile price structures.