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Korean operators fined again for phone subsidies

2013-12-30 11:19:00| Telecompaper Headlines

(Telecompaper) The Korea Communications Commission (KCC) imposed fines totaling KRW 106.4 billion on three mobile carriers for providing illegal subsidies to customers, the Korea Times reports. This is the biggest fine ever, up by over 59 percent from the KRW 66.96 billion imposed in July. The KCC slapped SK Telecom with fines of KRW 56 billion, KT with 29.7 billion and LG Uplus with 20.7 billion. The decision follows an investigation started in May and requires the three to stop immediately providing illegal subsidies and inform the public of the KCC's decision. During the probe, KCC found that all were involved in unfair competition by offering subsidies on handsets to attract customers. They had about 8.1 million new contracts and KCC examined 5 percent of them or 404,423 cases. The ratio of subsidies to handset prices stood at 65.8 percent at KT, 64.3 percent at SK Telecom and 62.1 percent at LG Uplus, with their average amount of subsidy at KRW 430,000, 421,000 and 380,000. These exceed the upper limit of KRW 270,000 set by the authorities. The KCC said it imposed the heavy fines after the three carriers repeatedly violated the law despite previous penalties.

Tags: phone korean operators subsidies

Category:Telecommunications

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