Until the current policy's complete abolition in March 2008, the government will start a plan called Subsidy Band and allow extra subsidies. On top of those benefits, the government will ease the fine for illegal selling activities. The fine will decrease from 6% to 3% by June.
Subsidy Band is a policy that allows flexible subsidy with a certain price range. It lets the telephone businessmen or stores to decide certain price ranged subsidy band and grant subsidy within its range. That is to say, if the band was set within 50 dollars, a telephone subscriber with 80 dollars granted subsidy will get an extra 50 dollars subsidy, adding up to be 130 dollars.
The subsidy plan encouraged the market for awhile, but it eventually disappointed customers and rather brought complaints for its unfairness. The amount of subsidy was supposedly determined by the customers' payment credits and 18 months usage with one company. However, the subsidy amount was manipulated by stores, subsidy price range being all different by each region and stores.
It is MIC's next assignment to lead out the enterprises to have a fair competition with no differentiation as they decide the Band. MIC will continue to work to stimulate the independent competitions in market and derive the market to meet with customers' real needs.
