The Ministry of Science and ICT announced it will increase the discount rate on spectrum fees for small low-cost mobile carriers from the current 50% to 90%.
On June 26, the ministry made this decision during a meeting at the Government Seoul Building, which was part of a task force focused on stabilizing living costs and alleviating burdens on the public.
Spectrum fees are costs that telecommunications companies must pay for using radio waves, as stipulated by the Radio Waves Act. Small low-cost mobile carriers are currently benefiting from a 50% discount, which is set to expire next year. These fees are distinct from wholesale prices paid to major telecom companies for using their mobile networks.
The ministry cited that low-cost mobile services are approximately half the price of those offered by major telecom companies. It also noted that many young people and vulnerable groups rely on these services, and a significant number of small low-cost mobile carriers have reported operating losses recently.
The ministry stated, "This measure will ease the cost burden on small low-cost mobile carriers and help them secure the capacity to lower prices and launch affordable plans."
The expanded discount rate is expected to be implemented next year following amendments to the Radio Waves Act enforcement decree in the second half of this year.
Additionally, the ministry plans to extend the 'Data Assurance Option (QoS)'—initially applied to major telecom companies—to low-cost mobile carriers as well.
Furthermore, a comprehensive plan to support the continued growth of low-cost mobile carriers is set to be announced before August.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.