Following rival, KTF raises handset subsidies

KTF Co., the nation’s second-largest mobile phone service provider, said yesterday that it would increase the subsidies it provides to subscribers who buy new handsets by up to 100,000 won ($105), beginning August 5. The move appears to be made in response to its competitor, LG Telecom Inc., which recently set its handset subsidies for current or new subscribers at 100,000 won. KTF said customers with longer subscription periods and more hours of phone use would benefit more from the new plan. Those with monthly fees over 90,000 won and subscription period of 7 years or more will be offered up to 350,000 won under the mobile service operator’s revised plan. “Customers who have been using mobile phones for at least seven years will receive up to 120,000 won more than those with other service providers,” a company spokesman said. However, those with monthly phone charges lower than 70,000 won, or those with a subscription period of less than 7 years, will have their subsidies rise by only up to 20,000 won. In late March, the Ministry of Information and Communication lifted a ban on handset subsidies, allowing mobile operators to revise the amount of subsidies they give on a monthly basis. This is the second time KTF has increased its subsidy amount since then. Regarding the decisions by the two rivals, market leader SK Telecom Co. spokesman said it would also soon jump into the competition. by Seo Ji-eun