The government will increase the discount rate on spectrum fees for small and medium-sized budget phone operators from the current 50% to 90%. It will also introduce a new budget phone business model that moves beyond simply reselling mobile carriers' networks to include operators with their own facilities.
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol discussed the "Budget Phone 2.0 Leap Plan" during a meeting of the Emergency Economic Headquarters, the Economic Relations Ministers' Meeting, and the Task Force for Special Management of Living Prices on July 31.
Koo stated, "We will activate the budget phone market to reduce the burden of communication costs on the public and allow innovative businesses to grow." He added, "We will expand the discount rate on spectrum fees for small and medium-sized budget phone operators from the current 50% to 90% and create a foundation for more affordable rate plans through improvements in wholesale conditions."
The government plans to diversify the business model for budget phone operators, allowing them to design their own rate plans and services instead of merely reselling mobile carriers' plans.
Koo emphasized, "We will introduce a new budget phone business model that goes beyond simple resale to provide various rate plans and services through independent facilities."
The new business model will be divided into Partial MVNO and Full MVNO. Operators will possess the necessary facilities for billing, subscriber identification, authentication, and traffic management, allowing them to independently design their rate plans and services.
Additionally, the government will strengthen sanctions against budget phone operators that are misused for crimes such as voice phishing. Koo stated, "We will impose differentiated discount rates on spectrum fees for operators that violate laws and cause harm to the public through voice phishing and other activities."
* This article has been translated by AI.
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