Ministry rethinks ban on cell phone discounts

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Ministry rethinks ban on cell phone discounts

The Ministry of Information and Communication issued yesterday a draft bill that revises a ban on cell phone service providers subsidizing handset sales to their subscribers. According to the ministry’s plan, cell phone users will be entitled to change providers more cheaply or receive a cut-price handset once every three years, as long as they have stayed with the same provider throughout that time. Service providers, such as SK Telecom Co., KTF Co. and LG Telecom Inc., must provide the ministry with the information detailing the maximum amount of discounts given to their customers. Also, the ministry’s plan stipulates that all cell phone service companies must provide the contract terms for recipients of the discounts if asked by the ministry, its subordinate organization the Korea Communications Commission, or other mobile communication companies. In addition, users of handsets installed with relatively new services such as wireless broadband technology and wideband code division multiple access technology will also qualify for financial benefits. The government will establish limits on the discounts on these new technologies. A ministry official said the plan should come into effect by March 2006 after consultation between the Legislation Ministry and Regulatory Reform Committee. by Lee Weon-ho
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