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Lawmaker calls for new telecom law to be revised [National Iraqi News Agency (Iraq)]
[November 11, 2014]

Lawmaker calls for new telecom law to be revised [National Iraqi News Agency (Iraq)]


(National Iraqi News Agency (Iraq) Via Acquire Media NewsEdge) Rep. Han Myung-sook of the main opposition New Politics Alliance for Democracy proposed a revision to the controversial telecom law on Sunday.

The proposed revision bill comes as the new Mobile Device Distribution Improvement Act has caused confusion in the market as the cap on handset subsidies has drastically cut purchases of new smartphone models.

I proposed the revision to clear customers' confusion, Han said.

The new act, which took effect last month, sets a 345,000 won ceiling on subsides that carriers can use to entice customers.

In the revision, Han called for the handset cap to be abolished, arguing that the new act had confused consumers and caused more inconvenience than before it took effect.

Setting a subsidies ceiling is hindering fair competition in the market, Han said.

She proposed that customers be allowed to get different levels of subsidies depending on their individual plans.

She also said the revision should include a requirement that mobile carriers and handset makers disclose their incentives separately.

The nation's telecom regulator has tried to include this requirement in the new act, but it was dropped because mobile carriers and handset makers failed to agree on disclosing their subsidies.

Han said handset makers and mobile carriers should have to disclose the information because consumers had the right to know.



If consumers knew the exact cost of each device and all subsidies had to be disclosed separately between handset makers and mobile carriers, consumers would make smarter choices, which would ultimately promote their rights, she said.

The new telecom act, highlighted by the handset cap, was aimed at ending the subsidy war and returning the distorted local telecom market to normal.


However, some mobile carriers' dealerships offered subsidies higher than the cap to lure customers to Apple's popular new flagship, the iPhone 6.

Last weekend, only one day after the iPhone 6 launched in the domestic market, the 16-gigabyte handset was selling for between 100,000 and 200,000 won in some shops by private dealers.

The factory price was set at 789,900 won and the maximum subsidy reported by the nation's three mobile carriers ? SK Telecom, KT and LG Uplus ? was 250,000 won.

Shortly after the news about the one-day sales, Korea Communications Commission (KCC) said it would take strong legal action against the three carriers for providing excessive subsidies and confusing customers.

Under the new telecom act, any subsidy over 300,000 won is illegal.

All rights are reserved for National Iraqi News Agency / NINA (c) 2014 Provided by SyndiGate Media Inc. (Syndigate.info).

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