I heard that the cost of communication was reduced in October due to government support, why is the cost of my communication expensive?

Last month, the consumer price index for telecommunications costs hit an all-time low of 83.33. When inflation in 2015 is considered 100, a value equal to or less than 100 indicates a decrease in inflation and a value greater than 100 indicates an increase in inflation. Fifth generation (G) mobile subscribers are projected to exceed 5 million by this year, but it’s hard to believe that communication costs are falling.

Thanks to the government’s policy of supporting telecommunications expenses, the consumer price index for telecommunications in October reached an all-time low. News 1

The temporary factor behind the sharp decline in the consumer price index of telecommunications costs last month is large. Statistics reflect that the government subtracted communication costs as part of emergency assistance.

ㆍ The government deducted 20,000 won for personal communication charges (September) for citizens aged 16-24 and over 65. As a result, the consumer price index for telecommunications costs fell from 96.63 to 83.33 in September this year.

ㆍ This is a temporary phenomenon, but as you can see in the September statistics, the price of telecom costs itself is lower than other prices. Communication costs recorded 100.09 in 2016 and 100.38 in 2017 from 100 in 2015, which is the benchmark, but after 2018 it is in the late 1990s. In other words, keep falling.

The main reason is politics. The number one contributor to the drop in the telecom cost price index below 100 lies in the increase in the discount rate of the option contract introduced in September 2017.

ㆍ Selective contractual discount refers to a system where, instead of receiving terminal support payments, a contract is entered into to use the mobile communication service for a specific period (usually 2 years) and a 25% discount is granted on the monthly usage fee. This means that since September 2017 the discount rate from 20% has been increased to 25%.

ㆍ Another element of politics. The government is providing telecom cost reduction benefits to the vulnerable, but the scope of the reduction has been extended since July 2018. Basic pensioners aged 65 and over can receive 11,000 won per month or 50% of the billing fee.

This is being analyzed because the number of “heavy users” who use a lot of data increases and the cost of buying and repairing phones increases.

ㆍ As data usage increases, the burden of communication costs inevitably increases when you switch to an expensive plan or switch from LTE to 5G. According to the Ministry of Science, ICT and ICT, in July this year, the average monthly traffic per mobile subscriber was 10.12 GB, surpassing 10 GB for the first time.

ㆍ Even if the fee for using the mobile phone goes down, if the cost of buying or repairing the phone goes up, the cost of communication will inevitably increase. Following the Bank of Korea’s analysis of statistics, along with Democrat Yoon Young-chan, the mobile phone price index has continued to rise since 2015. Based on Samsung Electronics’ 256GB product, the Galaxy Note 10 is 1.48.500 won, Galaxy Note 20 Ultra is 1.452.000 won, Z Flip is 1.65 million won, Z Fold 2 is 2.38 million won. In addition, repair costs also increased sharply to 114.03 last year.

The inside of “Cheap Phone Square”, an offline public relations room dedicated to cheap phones. News 1.

Since the methods of purchasing the mobile phone are diverse, the usage rates vary greatly even when using the same device and service. In recent years, with the release of the iPhone 12, a combination of standalone and affordable phones is emerging.

ㆍ Terminal self-sufficiency refers to a method of direct purchasing an air system through a manufacturer, home appliance distribution store, large discount store, online shopping mall, etc. If you use a standalone phone, you can also sign up for the LTE plan with a 5G terminal. (For 5G smartphones purchased through mobile phone operators, you can only subscribe to the 5G plan).

ㆍ If you use a cheap phone here, there is a benefit that you can use the rate plan with the same conditions as the carrier’s rate plan at a rate up to 30% lower than the carrier’s. It is 30% cheaper than the cost of receiving an optional contractual discount (25%) from a mobile operator. However, it is better to understand the usage patterns of yourself and your family, as in many cases it is not possible to use the combined wired / wireless discount, family discount, membership service, etc. Which can be obtained using the mobile operator service.

Reporter Kim Kyung-jin [email protected]

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