Basic city telephone rate to rise

On Apr.15, the basic rate for local phone service will rise by 1,200 won a month while the fee for phone calls will be lowered by six won for every three seconds. Consequently, 55 percent of all subscribers who make phone calls for less than 600 minutes a month will see their telephone charges decline.

The Ministry of Information and Communication Tuesday approved the telephone charge adjustment plan by Korea Telecom. According to the plan, the basic rate will be raised from the present 2,500 won to 3,700 won while phone-call charges will be lowered from 45 won to 39 won per three minutes. The new system will benefit those who make phone calls for less than 600 minutes a month, officials said. MIC and KT will also unify the telephone subscription system to be based on the subscription fee only. Currently, there are two systems, one based on the subscription fee and the other on the equipment cost.

They will also lower the subscription fee from the present 100,000 won to 60,000 won. The basic rate based on the subscription fee will increase by 1,200 won to 5,200 won. The telephone-charge adjustment plan is expected to spark a controversy as it removed the right of consumers to choose a system under which they would pay a lower basic rate but higher per call charges. The system is considered to be economical for those making few phone calls.

Kim Tae-Han freewill@donga.com