Regulator puts chokehold on LTE phone
By Kim Yoo-chul
SK Telecom and the top regulator are waging a tug of war over rate plans for advanced LTE-based telecom services.
The nation’s leading mobile carrier SK Telecom has delayed its plan to officially start the sale of much faster and advanced long-term evolution (LTE)-supported smartphones after the Korea Communications Commission (KCC) rejected pricing plans proposed by SK Telecom.
SK Telecom, which controls more than 50 percent of the local telecommunications market, needs approval from KCC if it wants to service new mobile rate plans.
SK Telecom is expected to delay the official launches of its LTE-backed smartphones sometime in the next week, at the earliest, though the company already ended talks with Samsung Electronics and HTC of Taiwan for LTE-enabled handset supplements.
``That’s because of SK Telecom’s unprofessionalism towards the new pricing plan. Although consensus hadn’t been reached in KCC, SK Telecom upset us by briefing its own plan to the finance ministry,’’ said a KCC official, Monday.
An SK Telecom spokesman said the company is still in talks with the regulator for an approval of its new mobile rate plans.
The situation is not much different to LG Uplus because its plan to introduce LTE-backed smartphones has been deadlocked after being hit by the KCC’s disapproval of LTE billing plans by SK Telecom.
LG Uplus is the smallest carrier in the local telecom market and the LG Group’s telecom affiliate has been set to sell LTE phones provided by LG Electronics.
Major migration to LTE is happening now in South Korea driven by explosive demand for wireless data amid stronger growth in data-intensive mobile devices such as smartphones and tablets.
Also the introduction of LTE networks reflects the move the telecoms industry is making towards delivering cloud-based and digitally-converged services, and an improved user experience, according to telecom officials.
SK Telecom officials said it will charge about $8 more to its LTE-supported smartphone customers on a monthly basis than the current 3G pricing plans for stable LTE services and added the company will completely scrap the so-called ``unlimited data mobile charge plan.’’
But the higher pricing is against the government’s anti-inflation policy initiatives. SK Telecom, KT and LG Uplus have cut their basic monthly charges by 1,000 won to respond to government pressure to cut prices to help ease inflation.
Telecom companies are the latest industry to face government scrutiny as the nation grapples with persistently high consumer prices.
Oil refiners have also lowered gasoline and other oil product prices followed government pressure, while South Korea has also cut import tariffs on consumer staples such as pork and milk.
After declaring a ``war on inflation’’ in early January, the administration of President Lee Myung-bak continues to seek ways to clamp down on consumer prices.
``That’s why the KCC wants more discussion on the effects of the new LTE pricing plans to low- and middle-income households,’’ added the official.
Samsung Electronics held a press conference to release its LTE-supported Galaxy S II smartphone in Seoul and its mobile chief Shin Jong-kyun talked about its detailed strategies in an “era of LTE.’’
Taiwan’s HTC was the first to introduce its own LTE smartphone, however, sales of the Raider have been stalled as they are available through SK Telecom.