Subsidies revived for mobile phones

The government will partially lift a ban on subsidies by mobile phone companies starting in March. The decision by the Ministry of Information and Communication to revive the practice, after a nearly three-year suspension, would benefit mostly consumers buying new third-generation mobile phones or upgrading their older models into third-generation handsets. "We will allow individual phone outlets to use their commission fees as subsidies for those purchasing phones. We will allow some portion of the price to be deducted as a subsidy for IMT-2000 phones or PDAs," said an official with the ministry yesterday. The ministry said the subsidy would be limited to 10 percent of the phone price for buyers of new equipment; and a ceiling as high as 20 percent will be placed on models 12 months old or older. The ministry, however, said that it would limit the program to phones that use the trunked radio system, global mobile personal communications by satellite, wireless data or paging technologies. Phones using second-generation technology and phones capable of transmitting moving images will not be eligible for the subsidy. More specific guidelines will be announced through a follow-up public notice, the ministry said. by Kim Dong-sub