[DigitalToday reporter Jin-ho Lee (이진호)] A system requiring the three mobile carriers to regularly inform subscribers of suitable rate plans has taken effect, but confusion in the field persists.

The relevant law is already in force, but implementing regulations have not been finalised. The government and the industry have also failed to narrow their differences over the notification interval.

The Ministry of Science and ICT and industry officials said on Oct. 16 that an amended Telecommunications Business Act requiring optimal rate plan notifications took effect on Oct. 1. A revised enforcement decree and a draft public notice to set details such as the criteria for obligated operators and the notification interval are undergoing regulatory review procedures, leaving the timing of actual notifications unclear.

The system requires carriers to analyse a subscriber's data, voice and text usage and plan conditions, and notify the subscriber of a plan that is more favourable than the current one. It aims to reduce telecom expenses by allowing users to check products suited to their usage even if they do not compare plans themselves.

Under the draft public notice, carriers must analyse average data, voice and text usage over the most recent six months, select a suitable plan, and notify customers by text message or email after comparing fees and service conditions between the current plan and the recommended plan. Carriers must prioritise recommending cheaper plans, but may also present additional options that are more advantageous depending on bundled discounts or additional benefits.

◆ Government says "six months", carriers say "one year"...still at odds over notification interval

The key point of dispute between the government and the telecom industry is the notification interval. The ministry is pushing for a six-month cycle to regularly reflect changes in users' telecom usage patterns and expand opportunities to change plans.

The telecom industry argues that analysing usage and sending notifications for a large subscriber base every six months would create substantial costs and administrative burdens. It says significant expenses would arise from building and operating a subscriber data analysis system, calculating recommended plans and sending notification messages.

It has also conveyed to the government a request to extend the interval to 12 months. From carriers' perspective, this could reduce recurring system operation and notification costs. An analysis has also emerged that fewer notifications about switching to cheaper plans could partly ease the burden of revenue declines from subscribers moving to lower-priced plans.

Another point of contention is that the system overlaps with existing plan comparison services and functions. Users can already check plans suited to their usage through "Smart Choice," operated by the Korea Telecommunications Operators Association (KTOA), and through each carrier's application. Existing services, however, require users to access them and check usage or input related information themselves.

◆ The law is in force, but when will the first notifications go out

With implementing rules remaining at the regulatory review stage, the timing of the first notifications has also become uncertain. The related enforcement decree and draft public notice are under review by the Presidential Regulatory Reform Committee. Even after the review ends, the enforcement decree must go through follow-up procedures including review by the Ministry of Government Legislation and deliberation at vice ministerial and cabinet meetings.

If regulatory review is prolonged, it could delay not only finalisation of the enforcement decree and public notice but also the carriers' actual notification schedule. Industry officials expect notifications to subscribers to begin no earlier than next month. The government's draft public notice requires notifications within one month every time six months elapse from the first day of the month after the date a telecom service contract is signed. How to divide and notify the first group of recipients also remains a task, since notification schedules differ depending on when a subscriber signed up.

A telecom industry official said, "When changing plans, customers could face penalties depending on subsidies, contract terms or bundled discounts, or see additional benefits reduced, which could instead increase customer complaints." The official added, "Overlaps with similar policies (such as Smart Choice) are also an issue that needs to be resolved at the review stage."