“Korea's Communication Spending 3rd Highest in the World,” Said OECD | Be Korea-savvy

“Korea’s Communication Spending 3rd Highest in the World,” Said OECD


“Korea's OECD announced its Communications Outlook 2013 (image credit: Flickr, by by Jemimus)

OECD announced its Communications Outlook 2013 (image credit: Flickr, by by Jemimus)

 

SEOUL, July 15 (Korea Bizwire) – Korea’s per-household communication expenses are third highest among Organization for Economic Cooperation and Development member countries. This is quite an opposite result from claims made by Korea’s telecom companies that the nation’s communications cost is lower than any other countries.

According to the biennial OECD Communications Outlook 2013, Koreans’ monthly average spending on communications needs, including bills for mobile phones, fixed-line phones, and broadband Internet connections, was US$148.39 (based on purchasing power parity terms), ranking third among OECD members.

Korea’s ranking in the 2011 survey had been No. 2. In 1997, Korea was ranked No. 1 in terms of the share of communications cost in disposable income at 3.2 percent. Since that time on, it has been ranked No. 1 four times in 2001 (5.6%), 2002 (5.6%), 2007 (4.6%), and 2008 (4.5%).

This year, Japan took the No. 1 spot ($160.52) and the United States ($153.13) was ranked at No. 2 among the 34 OECD countries. Other countries such as Mexico ($143.17), Ireland ($142.11), Luxembourg ($142.10), Austria ($136.39), Finland ($133.47), Canada ($129.83), and Spain ($124.03) were ranked from 4th to 10th. China was ranked lowest in terms of communications expense at $30.

Included in the communication expenses are mobile phone, fixed phone, and high-speed Internet service charges, as well as payments for new phone devices. The reason for Korea’s high burden for communications expenses has to do with the spread of smartphones. The fact that most users prefer high-spec smartphone devices with frequent model changes may have affected in raising the average spending amount.

by ICT@koreabizwire.com

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