South Korean Networks Agree to Curb Handset Subsidies

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South Korea's three mobile networks have agreed to install a "circuit breaker" into their systems to prevent them from exceeding regulatory limits of handset subsidies.

The regulator tightly controls the level of handset subsidies offered by the networks, and regularly imposes sales bans or fines for infractions. Seemingly having reaslised that the measures were not having the desired effect, the regulator has worked on an alternative method.

The move will still see the networks required to stop signing up fresh customers, but will be deployed in a similar manner as in a stock market -- to reduce volatility in the market.

The chairman of the regulator, the KCC vowed to "normalize the market".

He warned that the government will impose "heavy penalties" to carriers if they are found to have continued providing illegal subsidies.

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Tags: korea communications commission  Korea 

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