ID :
200559
Thu, 08/11/2011 - 05:53
Auther :
Shortlink :
https://oananews.org//node/200559
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KT set to cut mobile phone rates in October
SEOUL, Aug. 11 (Yonhap) -- South Korean telecom giant KT Corp. said Thursday that it will cut its monthly mobile service rates by 1,000 won (US$0.92) from October in line with government efforts to tame high inflation.
"From October, we will lower mobile phone rates by 1,000 won. Starting in November, we will offer all clients 50 free text messages per month," said KT, the country's No. 2 mobile carrier, in a statement.
All of KT's subscription plans, including those for smartphone users, are subject to the reduction plan, said the company.
The move came after top mobile carrier SK Telecom Co. decided to cut the mobile rates by 8 percent starting from September. KT controls about a third of the country's wireless market, while SK Telecom takes up about half.
The Seoul government has made every effort to curb inflation for months as inflationary pressure is building up in Asia's fourth-largest economy. South Korea's consumer prices jumped 4.7 percent in July from a year ago, accelerating from a 4.4 percent rise tallied the previous month.
In March, the government launched a task force, which consists of government officials, industry representatives, consumer advocates and experts, to discuss ways to ease phone rates which have risen sharply with the spread of smartphones.
KT said it will also come up with new flexible smartphone subscription plans, helping its clients save as much as 3,500 won per month.
Mobile service fees for smartphone users are about 30 percent higher than those for cell phones that can only handle voice calls and text messages. The number of smartphone users in the country hit 10 million in March.
KT estimated that the measures will cost the company 484 billion won per year.
"The rate cut will likely impose a financial burden on the company but we've made the decision as part of efforts to fulfill our social responsibility," said KT.
"From October, we will lower mobile phone rates by 1,000 won. Starting in November, we will offer all clients 50 free text messages per month," said KT, the country's No. 2 mobile carrier, in a statement.
All of KT's subscription plans, including those for smartphone users, are subject to the reduction plan, said the company.
The move came after top mobile carrier SK Telecom Co. decided to cut the mobile rates by 8 percent starting from September. KT controls about a third of the country's wireless market, while SK Telecom takes up about half.
The Seoul government has made every effort to curb inflation for months as inflationary pressure is building up in Asia's fourth-largest economy. South Korea's consumer prices jumped 4.7 percent in July from a year ago, accelerating from a 4.4 percent rise tallied the previous month.
In March, the government launched a task force, which consists of government officials, industry representatives, consumer advocates and experts, to discuss ways to ease phone rates which have risen sharply with the spread of smartphones.
KT said it will also come up with new flexible smartphone subscription plans, helping its clients save as much as 3,500 won per month.
Mobile service fees for smartphone users are about 30 percent higher than those for cell phones that can only handle voice calls and text messages. The number of smartphone users in the country hit 10 million in March.
KT estimated that the measures will cost the company 484 billion won per year.
"The rate cut will likely impose a financial burden on the company but we've made the decision as part of efforts to fulfill our social responsibility," said KT.
