Korea’s three mobile carriers have vowed to
stop providing customers with illegal subsidies. At a joint press conference Thursday,… SK
Telecom, KT and LG U-plus said… they will shift their sales and marketing paradigm from
one oriented around illegal subsidies to one that’s service-oriented.
To do that, they will work with the country’s handset makers, including Samsung and LG Electronics,
to lower the factory prices of cell phones… so that retailers won’t feel the need to give
subsidies to their customers. In addition, they plan to launch a market
monitoring team run by the three firms and suspend retailers that violate regulations.
The announcement comes after the three carriers were hit with tens of millions of dollars
in fines… on top of a minimum 45-day business suspension for providing the subsidies.