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  • Korean Government Warns Telecoms Against Providing Illegal Subsidies For the iPhone 5


    Apple’s iPhone 5 will debut in 50 more countries this month, including South Korea where officials are warning telecom providers to not grant excessive subsidies to Apple’s new phone.

    The Korea Communications Commission, the country’s telecom regulator, has threatened to punish SK Telecom and KT if they two companies attempt to attract more attention through illegal subsidies. Telecoms in other countries, including the U.S., have voiced their displeasure with the iPhone’s reportedly industry leading subsidy cost. The KCC actively attempts to curb these excessive subsidies, but telecoms like KT and SK Telecom pay little attention to the KCC’s threats as the lure of new subscribers is generally greater than the penalty they face.

    The KCC will start a thorough investigation of the carriers from December 7 ― the date Apple’s latest iPhone comes onto the market ― as we believe chances are high that the carriers will offer illegal subsidies to attract more customers. That’s against the law. — Korea Times
    Under Korean law it is illegal to offer subsidies that involve changing carriers, but the punishment for violation is a week-long ban from signing up new carries. Why this is such a big deal in a country where the iPhone has traditionally struggled is odd especially considering Samsung’s home field advantage. However, Apple does lead in terms of tablet sales.

    There has been some speculation regard Samsung's influence on the Korean government, but the claims lack any evidence other than the influence of Samsung's business on South Korea's over economic health.

    Source: Korea Times [via iDownloadblog]
    This article was originally published in forum thread: Korean Government Warns Telecoms Against Providing Illegal Subsidies For the iPhone 5 started by Phillip Swanson View original post
    Comments 4 Comments
    1. markotak's Avatar
      markotak -
      Is this warn of KCC mean fear of Samsung that iphone 5 sale will be succesfull on east Asia market?
    1. fleurya's Avatar
      fleurya -
      "Under Korean law it is illegal to offer subsidies that involve changing carriers"

      What? That sounds like some protectionist BS for the carriers to me.
    1. jOnGarrett's Avatar
      jOnGarrett -
      Quote Originally Posted by markotak View Post
      Is this warn of KCC mean fear of Samsung that iphone 5 sale will be succesfull on east Asia market?
      In your dreams.
    1. RokeSmoreMeefer's Avatar
      RokeSmoreMeefer -
      Quote Originally Posted by Phillip Swanson View Post
      Under Korean law it is illegal to offer subsidies that involve changing carriers, but the punishment for violation is a week-long ban from signing up new carries. Why this is such a big deal in a country where the iPhone has traditionally struggled is odd especially considering Samsung’s home field advantage. However, Apple does lead in terms of tablet sales.
      So it's odd that a law applies equally to all telecoms? I may not agree with the law, but at least it is being applied equally. Your attempted Apple bias spin is a FAIL.

      The real news here is that the Korean telecoms will willfully break the law to increase profits because the law lacks the power to stop them. Of course, this is nothing new... in any country...