The Ministry of Information and Communication held the 99th Information and Communication Political Council on the 30th of March and decided not to build WIPI, a standard wireless Internet platform, in mobile phones any longer. The Ministry intends to amend the Notification of Standards for Mutual Connection of Electric and Communication Facilities which stipulates an obligation to build WIPI into mobile phones so cheap mobile phones can be released on the market as soon as possible.
Kang Dae-young, director of the Policy Department of the Telecommunication and Broadcasting Police Office in Ministry of Information and Communication explained: "So far, many people have had to buy mobile phones with additional functions including wireless Internet because of the regulation of stipulating mandatory use of WIPI despite just using their phones for calling or SMS. But by the virtue of this measure, consumers who intend to use just the simple functions of a mobile phone get to have extensive options for the purchase of a mobile phone."
The industry expects the price of mobile phones without wireless Internet will go down by over 50,000 won (US$53). The price may be lowered by 100,000 won (US$107) if the sales quantity of WIPI-free mobile phones reaches a certain level. Distributors and sales channels in the market forecast that many free phones may appear if subsidies are considered under the circumstance that the price is lowered already.
Analysts say that many consumers will enjoy the benefit resulting from nullification of the regulation of mandatory use of WIPI. The ratio of local mobile phone users that use wireless Internet is 47% including the number of consumers using SMS, which means that 53% of mobile phone users have had WIPI-built-in mobile phones despite not using wireless Internet. If the number of consumers using SMS is deducted from the wireless Internet usage rate of 47%, more consumers will be able to enjoy the benefit.
Those concerned about the Ministry of Information and Communication explained: "WIPI was a standard policy for the exchange of mobile communication services among relevant companies, but now in the age of 3rd-generation services with image phones available, we have decided to change the policy to a consumer-oriented one." As the mandatory use of wireless Internet has been nullified, SK Telecom and KTF are expected to go into serious competition to release WIPI-free mobile phones in the market.
