Yongbin Lee "Revising the Structure of Communication Fee Discounts... Obligation to Share Burden for Value-Added Telecom Operators"

‘Data Welfare Expansion Act’ Proposed

[Asia Economy Reporter Seulgina Jo] Rep. Yongbin Lee (Gwangju Gwangsan-gu Gap), who is serving as the Telecommunications Cost Officer of the Euljiro Committee of the Democratic Party of Korea, on the 27th, took the lead in proposing the "Data Welfare Expansion Two Acts (Amendments to the Telecommunications Business Act and the Broadcasting and Communications Development Act)" which focus on ▲ the introduction of a telecommunications welfare voucher system for socially vulnerable groups and ▲ the mandatory contribution to telecommunications welfare funds by facilities-based telecommunications operators, value-added telecommunications service providers, and device manufacturers.

The current Telecommunications Business Act stipulates that if necessary for public interests such as national security, disaster relief, and social welfare, telecommunications service fees shall be discounted for vulnerable groups as prescribed by Presidential Decree, with the entire burden borne by facilities-based telecommunications operators.

In March, Rep. Lee proposed five bills on automatic discount application for telecommunications and other social security service fees (Tonggamja 5 Acts) to address the institutional limitations of the current discount service, where on average 3.6 out of 10 eligible beneficiaries do not receive benefits, by including the authority for national agencies and local governments to apply for discounts ex officio.

Rep. Lee pointed out, "The nature of telecommunications costs today is, unlike in the past with call and text charges, essentially data usage fees," adding, "Data consumption has diversified into content, product purchases, platform service usage, and device installment payments, but especially the public responsibilities related to universal services of value-added telecommunications service providers, who provide voice, text, and similar facilities-based telecommunications services over the internet, are almost non-existent."

He criticized, "This stems from the legal and institutional limitation where, unlike facilities-based telecommunications operators who are required to provide discounts to vulnerable groups, manufacturers supplying digital devices and value-added telecommunications service providers offering digital services and content are not assigned public responsibilities."

He continued, "The current discount system is limited to telecommunications services and does not cover digital devices, digital content, and app consumption necessary for smooth use of essential digital services for the public, thus failing to reflect the reality of today's data consumption-centered society. Instead of the existing telecommunications welfare system limited to full cost-sharing by facilities-based telecommunications operators, there is a need to introduce a more expanded welfare system."

Legislation imposing obligations related to universal services such as discounts for vulnerable groups on value-added telecommunications service providers is already a global trend. Recently, bills have been introduced in the United States and the European Union (EU) to impose universal service funds, including discounts for vulnerable groups, on big tech companies.

Rep. Lee emphasized, "Through the Data Welfare Expansion Act, we aim to realize fairness in universal services that align with the data consumption-centered society based on the platform economy, promote a paradigm shift in telecommunications costs, and reduce telecommunications costs for socially vulnerable groups, thereby advancing the era of data welfare and elevating the quality of life for our people."

Meanwhile, Rep. Lee plans to raise questions during the upcoming October National Assembly audit regarding the reality that 91% of the population owns smartphones and considering the development of information and communication technology and changes in the platform-centered economic and social environment. He will hold value-added telecommunications service providers accountable for ▲ inadequate public responsibilities, ▲ economic and social damages caused by insufficient responses to platform-based rating terrorism, false, deceptive, and exaggerated information, and will urge the establishment of countermeasures and social commitments in telecommunications network and service operations, which incur the highest costs.

This content was produced with the assistance of AI translation services.