South Korea stands as one of the most saturated smartphone markets in the world. With such high use, reports say telco companies are forced to get creative to ensure their share of the market.
A price was is raging between the nation’s top operators, SK Telecom, KT and LG U+, but it’s a tricky situation that has forced contracted handset makers to pay the losses to operators from lower costs for consumers. The problem is compounded, say reports, as South Korean wireless firms look to adopt a subsidizing model followed in other national markets that offer low handset costs for a long-term contract.
As a repercussion, the Korea Communication Commission has fined operators hundreds of thousands of dollars, and has more recently ordered business suspensions on the firms, over concerns that subsidizing phone costs has lead to consumer poaching.
Lower handset costs do not necessarily benefit the consumer, the regulator said, and instead operators should lower their wireless plans. The KCC is reportedly looking to implement new regulations that would promote such long-term benefits to wireless consumers.
Full Content: Venture Beat
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
OpenAI Board Denies Receiving Formal Bid from Elon Musk
Feb 12, 2025 by
CPI
Thomas Kauper, Former DOJ Antitrust Leader, Dies at 89
Feb 12, 2025 by
CPI
BlackRock’s Acquisition of Preqin Secures UK Regulatory Approval
Feb 12, 2025 by
CPI
NFL Sued Over Bluesky Ban by Fans Citing Antitrust Violations
Feb 12, 2025 by
CPI
Warburg Pincus Strikes $1 Billion Deal to Acquire Vermont Information Processing
Feb 12, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – International Criminal Enforcement
Jan 23, 2025 by
CPI
The Antitrust Division’s Recent Work to Combat International Cartels
Jan 23, 2025 by
Emma Burnham & Benjamin Christenson
Information Sharing: The New Frontier of U.S. Antitrust Enforcement
Jan 23, 2025 by
Brian P. Quinn, Casey Kovarik & Michael Tubach
The Key Role of Guidelines on Exchanges of Information Among Competitors and the Divergent Transatlantic Paths
Jan 23, 2025 by
Rosa Abrantes-Metz & Albert Metz
Leniency, Whistleblowers, and Compliance
Jan 23, 2025 by
Richard Powers, Tara O’Malley & Cory Gordon