Gov't to raise spectrum fee discount for small MVNOs from 50% to 90%

The government plans to raise the spectrum usage fee discount rate for small mobile virtual network operators from 50 percent to 90 percent, aiming to ease household telecommunications costs.

A "data safety option" service — which allows unlimited data use at reduced speeds under a quality-of-service, or QoS, framework — will also be extended to MVNO subscribers.

The Ministry of Science and ICT said Friday the measures were included in a joint government package on stabilizing living costs and reducing the burden on ordinary households, announced at the Government Seoul Complex.

Under the plan, the ministry will raise the spectrum fee discount for small MVNOs from 50 percent to 90 percent and extend the discount period by three years. Spectrum usage fees are charges that telecommunications operators pay for using radio frequencies. Small MVNOs currently receive a 50 percent discount, set to expire next year. The Ministry of Science and ICT reached the decision after consultations with the Ministry of Finance and Economy and the Ministry of Planning and Budget.

The ministry also plans to extend the QoS data safety option — initially set to apply to the three major carriers — to MVNOs. The service lets users continue using data at a speed-capped rate of 400 kilobits per second after their data allowance runs out.

The government expects the measures to ease cost pressures on small MVNOs, giving them greater room to cut prices and launch more affordable rate plans.

The expanded discount rate will take effect next year following an amendment to the Enforcement Decree of the Radio Waves Act in the second half of this year. The Ministry of Science and ICT also plans to release a comprehensive strategy for the sustained growth of the MVNO sector before August.