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Mobile Communication Companies Earn Big Money from Adult Contents Services

Mobile Communication Companies Earn Big Money from Adult Contents Services

Posted May. 25, 2005 03:31,   


Obscene Contents Earn Big Money for Companies -

SK Telecom topped the list last year by earning 33.4 billion won in adult content usage fee among the three local mobile communication companies, followed by KTF (20 billion won) and LG Telecom (6.4 billion won).

However, calling charges are a larger source of revenue for mobile communication companies. Since consumers must pay 1.3 to 6.5 won per packet (512 bytes), if they view photos and motion pictures that have a larger capacity, the calling charges that they must pay will increase sharply.

For example, if one views 30 pictures of adult content with 20kB, one has to pay just 1,000 to 2,000 won in information usage fee, but one has to pay 7,500 won in calling charges. Though the information usage fee of a motion picture that is shown for three minutes (3,000kB) is mere a 400 to 600 won, its calling charges amount to 7,800 won.

A worker of mobile communication companies said, “Even though it is difficult to itemize the wireless Internet calling charges based on content, adult contents-related calling charges cost three to four times more than an ordinary information usage fee.”

On the basis of this remark, the total revenue from adult contents-related calling charges of SK Telecom is estimated at around 100 billion won last year, and that of KTF is also estimated at over 60 billion.

Increasing Revenue from Adult Contents-Related Calling Charges Leads to a Hotbed of Irrationalities-

Entertainers’ nude projects have greatly contributed to increasing revenue in the adult contents service.

SK Telecom’s revenue from information usage fee in the first quarter of last year (January to March) was 4.2 billion won, but it jumped to 12.4 billion won in the first quarter of this year. This contents have shown a faster revenue increase than other contents, which may lead to irrationalities.

A former manager in charge of the adult contents department of SK Telecom was arrested on a charge of receiving bribes and treats worth prodigious 1.5 billion won from 16 subsidiary companies in March.

Mobile communication companies have paid 80 to 90 percent of the information usage fee to contents providers (CP). As adult contents revenue has augmented sharply, the CP’s revenue has also increased rapidly.

It is highly likely that since the CPs’ fate depends on whether they succeed in appearing on the main screen of mobile communication companies, they may traffic with mobile communication companies illegally.

Juveniles Exposed to Adult Contents without Protection-

A report that the Ministry of Information and Communication recently submitted to the National Assembly shows that the main body of adult contents service is CPs and mobile communication companies have lent their wireless Internet networks to them. Despite the fact that mobile communication companies have made much money from adult contents service, they have taken no responsibility for it.

In particular, motion pictures have been pre-screened by the Korea Media Rating Board, but ordinary contents, including pictures, obscene stories, and cartoons, have been post-reviewed, resulting in inefficacy.

Rep. Chin Young (Grand National Party, and the Science, Technology, Information, and Telecommunications Committee of the National Assembly) said, “It was analyzed that among the total of 36 million subscribers of mobile communication companies, 26 million (81.6 percent) people have enjoyed the adult contents.” He added, “Taking into consideration that the younger generation can easily access it without any restraints due to its technical and systemic flaws, it is necessary to come up with effective measures.”

Do-Young Kim Suk-Min Hong nirvana1@donga.com smhong@donga.com