These days, the smart phone age has arrived. Many people use the smart phone. A smart phone’s calling plan is nearly twice as much as an original calling plan. Adding to this, people pay for the machine’s full price. So, last year the monthly average of telephone service was 140,000 won per household. That accounts for 7.09% of household consumption expenditures. This price level ranked twice as much as other OECD countries’ averages. Why is this happening? Let’s find the bubble of smart phone’s calling plan.

Reason 1: KT Telecom Privates
Kt is center of communication expense. Unlike other countries, the Korean government doesn’t have any shares vested in communications. Thus we don’t have any restraining influence for the profit of telecommunications companies. According to statistics on OECD country comparison, our community sales increase dramatically. Also, our government gives business rights too many enterprises. This cause rising marketing costs are reflected in the cost of communication’s prime charges. In the case of KT, just compare between 2001 and 2010, the marketing costs have increased by a factor of ten.

To relieve the situation, a schedule plan should be discussed where some of the mobile communications industry’s interests nationally owned. When the state has a 20-30% interest in an industry, we can weaken the excessive KT’s marketing spending. And to be balanced, SKT and LG will adjust their prices.

Second reason: Smart phone Industry- fixing
The fee structures of the telecommunications industry are similar, and the most commonly used interval of 35,000 ~ 65,000 won provides a monthly payment based on the amount of free calls. This calling plan tide voice and data service. So it is very expensive to such an extent as to only use by business man .In addition, collusion by companies, and monthly fees do not reduce the effort.

In order to resolve this, a basic fee is required for minimizing sharp reduction. In particular, text messages that are known as having almost zero costs should be promoted by reduction of the fees. Also, caller ID service and membership fees must be free. Communication rates of assessment and evaluation criteria must reveal the contents. So we need to adjust the fee reasonably. As such, if the corporation itself puts forth effort to reduce the charges to the consumer, they will be able to reduce the communication costs.

Current status
On June 4, a reduction policy plan was announced. According to the announcement, they give 50 of free messages and cut the monthly fee. It is very small cut compared with the cost of production. According to companies’ opinion that they give only little cut, the future mobile network investments will be need. So we paid such fees. But Monthly fee must be used to currently service for person of the monthly fee paid. So company’s opinion is insufficient to comprehend to consumer logically.

In addition, the implementation plan was abolished in the case of an unlimited data plan. Of course, because of the number of heavy users, light users see the damage of the data network‘s quality due to excessive consumption. But when seen by comparing between LTE plans and existing plans, a monthly fee of more than 30000won is maintained. Within these cost, it has simply been the abolition of unlimited plans and decreasing choice of low fare. For these reasons, LTE fares are not at a reasonable price.

Conclusion
In conclusion, in addition to the situation that doesn’t have company means a diversion, distribution and abundance due to convenience, consumers can use the phone was being forced. This situation promotes the tyranny of corporation. With the initial distribution of smart-phone, companies set high prices due to concerns that the smart phones would not be activated. And they said that in the case of a LTE plan, they can’t cut the price. But, whoever seen these situations, smart-phones are now enough in supply and have been a part of our lives for long enough. By using smart phones, also this increased the burden of household as well as the burden on students. These burdens led to complaints from consumers and made voices that have been spread to a signature campaign about communication expenses. So, companies have to accept public opinion about the price of smart phones, and they should make an effort to reduce costs. And the government must make an effort to change the competitive landscape that paved the way to the tyranny of the companies that they should be holding back. No matter what the consumer chooses for their calling plan, all consumers should look forward to the day when prices are reasonable.