May 02, 2024

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[THE INVESTOR] Mobile phone fees in Korea reached an all-time low in 2018 thanks to a government policy and carriers’ fee cuts, government data showed on Jan. 28.

The mobile fee index stood at 98.4 last year, down 1.6 percent from the previous year, according to the data from the Ministry of Science and ICT, and Statistics Korea.

It marks the lowest level since the government began compiling data in 1995. The base year for the index is 2015.

The index, which came to 188.8 in 1995, had been hovering around 100 since falling there in 2012.  

Last year’s drop was attributed to government efforts to cut mobile fees and carriers’ introduction of low- and mid-rate plans.

In September 2017, the discount rate of monthly mobile phone plans was raised from 20 percent to 25 percent.

Last year, Korea’s three mobile carriers -- SK Telecom, KT and LG Uplus -- put forward lower fee plans to lure budget phone users.

Meanwhile, the price index for mobile phones came in at 102.9 last year, up 2.9 percent from the prior year and a four-year high, due to higher device prices.

By Ram Garikipati and newswires (ssh@heraldcorp.com)