Science ministry to cut telecom costs for households in South Korea

South Korea's science ministry said Monday it will have mobile carriers slash their enrollment fees and smartphone prices and offer more diverse service plans to help lower telecommunications costs for households.
In measures that precede detailed policy guidelines due in November, the Ministry of Science, ICT and Future Planning said it will first slash the enrollment fee of carrier service by 50 percent in the third quarter, and also cut the price of universal subscriber identity modules (USIM) by 10 percent.
The ministry will also have the country's three carriers -- SK Telecom Co., KT Corp., and LG Uplus Corp. -- provide pre-paid long-term evolution (LTE) service in the near future as well as more service plan choices for the elderly and handicapped.
Local MVNOs (mobile virtual network operators) will also release LTE and third-generation network services which are up to 50 percent cheaper than existing service plans by July, the ministry said.
MVNOs refer to mobile service providers that rent networks from the country's existing carriers. As they save costs in their operation of the networks, the MVNOs usually provide users with plans cheaper than the major carriers.
The ministry said it will also continue to induce mobile carriers and tech manufacturers to lower the factory prices of smartphones, adding it will root out any illegal activities related to sales, including excessive incentives.
While incentives are the most widely used ploy to entice subscribers to change their mobile operator, they are blamed for undermining fair competition and market transparency.