Forced cancellations of mobile telecom services rising rapidly - ((Korea))
A massive campaign is underway among mobile phone providers to rid themselves of
non-paying subscribers, resulting in the cancellation of some 326,000 subscriptions last
month alone, according to industry sources.
This marks an increase of more than 60 percent from the previous monthly average of
200,000 cancellations.
And, since mobile phone operators are planning to enforce stricter regulations resulting
in more closed accounts in coming months, the inconvenience to subscribers is likely to
continue through the first half of the year.
SK Telecom (SKT) and Shinsegi Telecomm - together the telecom market leader - will
tighten criteria for canceling subscriptions in order to reduce their market share, which
stood at 54.1 percent as of the end of January, to below 50 percent by the end of June.
The companies promised the share reduction in return for government approval for their
merger last year.
Last month, SKT cancelled 89,000 subscriptions, more than double the previous
monthly average of 35,000, while Shinsegi cancelled 72,000.
Previously, subscribers failing to pay more than 100,000 won for more than two months
had their accounts cancelled, but since February the company has been suspending
services when payments were delayed for 20 days and canceling subscriptions after
fees were not paid for 50 days.
PCS operators have been doing the same, saying the move is to improve their financial
structure.
Korea Telecom Freetel also cancelled 71,000 subscriptions, KT M.com 46,000 and LG
Telecom removed 48,000 subscriptions.
But SKT officials complained that the copy-cat moves by PCS operators were aimed at
hampering SKT and Shinsegi's efforts to reduce their market share, meaning they
would have to pay large fines to the government.
PCS operators responded that they are simply trying to remove non-paying subscribers.
Some watchers view the measures as an attempt by PCS operators to secure service
numbers and frequencies currently occupied by non-paying subscribers ahead of
full-scale competition with SKT and Shinsegi to attract subscribers after July.
(hsshine@koreaherald.co.kr)
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