South Korea's Ministry of Science and ICT met with the budget mobile industry to discuss directions for institutional improvements to revitalise the market. It will support market expansion by widening radio frequency fee reductions and supporting the entry of full MVNOs, among other steps.

The ministry held an on-site meeting on Tuesday at Budget Phone Square in Seoul with representatives of major budget mobile operators to discuss follow-up implementation plans for its "budget mobile activation plan" and difficulties in the field.

The meeting was chaired by Choi Woo-hyuk (최우혁), director general for the Information Security and Network Policy Bureau. Attendees included 10 budget mobile operators: Smatel, KB Kookmin Bank, Stage Five, Eyesvision, Woori Bank, Unicomz, Keunsaram Connect, Toss Mobile, Freetelecom and Korea Cable Telecom (KCT).

The ministry announced its budget mobile activation plan in July. The plan focused on moving away from a business structure centred on simple resale, fostering budget mobile operators with their own facilities, and expanding competition on pricing and services.

The government will first revise the enforcement decree and notices under the Telecommunications Business Act to support the market entry and growth of partial MVNOs and full MVNOs that have their own facilities. It will also pursue support measures that link policy finance to operators that expand facilities investment.

It will also expand radio frequency fee reductions to ease the cost burden on small and midsize budget mobile operators. At the same time, it will pursue revisions to the enforcement decree under the Radio Waves Act to apply reduction benefits differentially to operators that violate laws. It will also raise the level of user protection. The government plans to raise staffing standards for budget mobile customer service and strengthen user protection measures so subscribers do not suffer harm if an operator suspends or shuts down its business.

The ministry plans to swiftly push ahead with follow-up steps after going through administrative and legislative notice procedures for the related revisions to enforcement decrees and notices in October.

The industry conveyed on-the-ground difficulties and ways to strengthen market competitiveness to the government. Participants discussed ways to continuously improve the price competitiveness of budget mobile services compared with the three mobile carriers, expand investment in their own facilities, and develop differentiated pricing plans and services.

Choi said the budget mobile activation plan was a starting point to reduce operators' cost burden and improve the fundamentals of the budget mobile market. He said the government would implement follow-up measures without setbacks and continue communicating with the industry.