"Internet and TV Bundled Product Prizes Vary Greatly... Management Blind Spots"

Overheated Competition Among Telecom Operators Leads to User Discrimination
KCC Does Not Specify Maximum Charges by Service

[Asia Economy Reporter Cha Min-young] Domestic mobile carriers are facing criticism for severe user discrimination amid overheated competition in bundled products such as mobile phones, TV (paid broadcasting), and internet services, while the Korea Communications Commission's management measures are considered inadequate.

According to data investigated by Rep. Lee Yong-bin (Gwangju Gwangsan-gu Gap) of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee on the 4th, the KCC did not specify upper limits for each service when establishing the prize notification in 2019.

The KCC only included a clause stating that "if the prize level is within ±15% of the overall average prize level, it is not considered discrimination among users and is allowed." However, consumers who receive prizes cannot verify whether the prize price falls within ±15% of the overall average, leading to calls for more detailed management standards.

Although the draft prepared at the end of 2017 based on opinions from experts and operators proposed upper limits for each service, the actual KCC notification omitted these limits. While preparing the prize notification under the Telecommunications Business Act reflecting expert and broadcasting/telecommunication operator opinions, the final notification did not incorporate field opinions.

As the bundled product market combining mobile phones, internet, and TV (paid broadcasting) has increased 19-fold over the past decade, competition to prevent subscriber churn and attract new customers has intensified. Prizes ranging from 65-inch TVs worth over 1 million KRW to wireless vacuum cleaners, gift certificates, and cash gifts have been offered, resulting in significant prize disparities by region, retail store, and sales channel.

Assemblyman Lee Yong-bin

Rep. Lee Yong-bin pointed out, "Telecom companies are evading the public subsidy limit regulations of the Device Distribution Improvement Act by cleverly using prizes in bundled product sales, thereby fostering user discrimination," adding, "Moreover, the prize notification under the Telecommunications Business Act has ambiguous and vague management standards, ultimately leaving a blind spot in management."

He also emphasized, "The KCC should strengthen continuous monitoring and regular surveys, and actively consider disclosing the overall average prize price so that users can easily access this information," stressing, "It is necessary to correct the overheated and chaotic competition among mobile carriers to reduce damage to many consumers and small-to-medium cable companies."

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