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South Korea to subsidies 3G handsets

April 14, 2004

Consumers in South Korea have been given a new incentive to subscribe to WCDMA mobile services. Dow Jones Newswire reported that the Ministry of Information and Communication confirmed operators starting from Friday are allowed to offer 40% handset subsidies for 3G WCDMA mobile phones.

The local government banned mobile operators from offering handset subsidies in 2000, because new subscribers were given large discounts, or free handsets, in return for signing up with mobile operators for an obligatory period.

The subsidy exception aims to promote usage of the WCDMA wireless technology which was launched in the country at the end of last December by both SK Telecom and KTF.

SK Telecom and KTF are also operating another 3G network using CDMA2000 1xEV-DO technology. According to the ministry, WCDMA handsets cost roughly 1 million won more than handsets based on EV-DO technology. (£1= 1,817 KRW)

 

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