20051026

Subsidies : boosting subscriptions or exports ?

Korea's MIC will reopen a door to hanset subsidies. Household consumption may be up, consumers cannot afford next gen devices and that's a blow to Korean industries : how to sell S-DMB abroad when only early adopters can buy it (see "handle with e-care - China-aware pro gaming") ? how could Korea join leading countries on the W-CDMA / HSDPA tracks (not to mention EV-DO Revision A and B for LG Telecom) and push Wibro standard at the same time ?
But the problem at the root of the law forbidding such subsidies remains. So the MIC decided to restrict subsidies to long time subscribers (3 years or more with the same MNO) : the acquisition war won't be reignited and leading operators will focus on loyalty. One can easily imagine SKT telling his customers : you know you have a right to churn, but think first about what you're about to lose.
Besides, LG the manufacturer can sacrifice LG Telecom the mobile network operator for the sake of Daehan Minguk. The "can do" times are over ; Korea discovers the duties of the "must do" era.



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