While some Internet subscribers still receive large amounts of cash equivalents from telecommunications companies using termination as bait, there are places where this practice is a ‘pie in the sky.’ This is because residents of small cities and mountainous areas in provincial areas have no option other than KT.
KT employees inspect a base station in Gwanghwamun, Jongno-gu, Seoul, March 15, 2019. / KT
Mr. C, who is in his 60s, lives in a detached house. There are also quite a few houses nearby that cannot communicate at all. KT is the only mobile carrier that comes in. For Mr. C, it is a story of another country that city subscribers receive gift certificates through threat of cancellation. “Even if they want to replace it with another mobile carrier, they refuse to install it. I am grateful that the mobile communication network is exploding, let alone providing benefits,” Mr. C said.
The same goes for a 50-year-old man. “We have no choice in rural areas,” he said. “We cannot receive any benefits because only KT can join the Internet.” "The myeon area is monopolized by KT,” he said. “We cannot change to another company because the companies do not recognize each other’s business rights in the region and do not compete.”
This is due to the government’s policy. Critics point out that the universal service system has rather become a structural shackle that prevents local residents from choosing a carrier. In January 2020, the government designated high-speed Internet as a “universal service” that is the basic right of the people. KT, which allows users to receive 100Mbps or higher service if they apply anywhere in the country, has been designated as a mandatory construction company with nationwide wired network infrastructure.
Accordingly, if users of islands and mountains apply for services, KT is obligated to establish a network. KT does not fully bear the cost of construction and loss of operation. It is a structure that is shared by SK Telecom and LG Uplus, telecommunications operators with a certain sales amount or more. The problem is that there is no incentive for competitors such as SK Broadband and LG Uplus to enter the provinces within this structure.
An industry official said, “There are areas that are not covered for various reasons such as business feasibility. KT, which has the widest network among telecommunication companies, has been selected as a mandatory construction company.”
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