South Korea Sells Cheap Smartphones through Post Office

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In a country where there is a 100 percent cell phone density, what could be the government’s move?

The government in South Korea has come up with a plan to reduce the mobile phone bills of the working class population by coming up with mobile phone plans which are as small as one dollar per month and which are offered via post office and small telecom operators. The response so far has been encouraging.

If fact the response was so overwhelming that the lowest-cost plan had to be taken offline because of the availability issues. An official of South Africa Post has said that the Post Office and the telecom companies will re-open the cheapest 1000-won per month plan soon.

These cheap plans were launched in September this year and so far they have attracted more than 30 thousand users with the pace of getting more subscribers only getting momentum every week.

The base rates offered by the mobile phone plans are ranging between 1000 won ( US$ 0.94) to 25,000-won a month whereas the rates offered by the three largest telecom operators range from 10,000 won to 100,000 won.

A chunk of the savings is coming from the government’s move to require the largest telecom operator SK Telecom to lease bandwidth to smaller telecom operators – who start provided the services without any capital cost. Other savings factor is the low-end handsets being offered which lead to saving of money otherwise spent on high-end smartphones.

 

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