KCC calls for mobile rate cuts; may consider allowing MVNOs

The chairman of South Korean regulator, the Korea Communications Commission (KCC), Choi See-joong, has called on mobile operators to reduce call charges on the back of an OECD report highlighting the country as one of the world’s most expensive for mobile phone use, the Korea Times reports. His recommendation follows a similar pledge by South Korean President Lee Myung-bak to cut mobile rates by 20%. The regulator is understood to be considering a variety of methods to force rate reductions, including the banning of handset subsidies to promote cheaper call rates, expanding pre-paid tariffs and most notably allowing the introduction of mobile virtual network operators (MVNOs). All three of the country’s wireless operators meanwhile have responded unfavourably to the calls, with SK Telecom, the largest cellco by subscribers, claiming that government interference could have a negative effect on competitiveness in the wireless sector, as well as potentially damaging profitability.