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Home > Communications > Telecommunications > General Telecom
South Korea Telecommunications Report Q3 2007]
In an election year for the South Korean presidency, the country’s mobile operators are being pressuredby the government to reduce their mobile tariffs, especially for lower income groups. SK Telecom, KTFand LG Telecom have been in talks with the Ministry of Information and Communication (MIC)regarding the price of their services, following disparaging remarks by the presidential office that theyshould ‘rationalise’ their fees. LG Telecom said the remarks were made due to ‘concerns about votes.’However, according to policies laid out by the MIC, direct intervention in price setting is forbidden. Itwould appear therefore, that SK Telecom’s announcement it would cut mobile rates by 50% forsubscribers making calls on the same network from October onwards forms part of government pressure;the operator however denies that it has bowed to government orders.
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