Apple’s iPhone 15 series (Image courtesy of Yonhap)
SEOUL, Oct. 24 (Korea Bizwire) – Consumer prices for communication services, a fundamental necessity in everyday life, have seen their most significant growth in 33 years during the first nine months of this year.
Despite a history of maintaining a low growth rate, communication prices have increased for two consecutive years, driven not only by rising smartphone usage fees but also by surges in smartphone handset prices and repair costs.
According to the national statistics portal of Statistics Korea on Monday, communication prices in the country for the January to September period of this year increased by 1 percent compared to last year, marking the highest growth since 1990 when it reached 7.4 percent.
After experiencing a four-year decline starting in 2018, communication prices rose by 0.7 percent in the first nine months of last year and have continued to show higher growth in the same period this year.
Communication prices are calculated as an aggregate of six items, including mobile phone usage fees, handset prices, internet usage fees, mobile phone repair costs, fixed-line usage fees, and postal services. While individual items have experienced fluctuations in their prices, overall, communication prices have exhibited very low or negative growth.
Samsung Galaxy S23 (Image courtesy of Yonhap)
Since 1995, when mobile phone usage fees were included in the consumer price index, communication prices have mostly seen negative growth, with exceptions in 2016, 2017, and 2022. Even in years when communication prices increased, the growth rate remained below 1 percent.
The recent surge in communication prices is primarily driven by increased mobile phone usage fees and rising handset prices. The weighted values of mobile phone usage fees and handset prices within the communication price index are estimated at 31.2 and 11, respectively, giving them the highest significance among the six components.
In the first nine months of this year, handset prices saw a year-on-year increase of 3.5 percent due to the release of new products, marking the highest growth since relevant statistics were first compiled in 1995.
During the same period, mobile phone usage fees increased by 0.2 percent, following a 0.4 percent increase last year. This marks the first time that mobile phone usage fees have increased for two consecutive years since 1995.
Kevin Lee (kevinlee@koreabizwire.com)
