Some servicemembers in Korea hit
with increased telephone charges
By B.R. Sargent, Seoul
bureau
U.S. citizens living in a base housing area near Yongsan Garrison say
they’re feeling the bite of a new phone policy.
Korea Telecom, the only company authorized to provide phone service
in military housing areas, is raising its monthly rates and charging new customers a $45
nonrefundable deposit. But current customers who live in the Hannam Village housing area
complain that they are being forced to pay a $182 refundable deposit, or face monthly
rates more than triple the old charges.
The phone company implemented the new rates because it lost $280,000
since 1998, said Sgt. 1st Class Paul Sweeney, an AAFES spokesman. Korea Telecom signed the
new contract with AAFES on April 11.
Sweeney said the losses came “mostly from U.S. federal employees
who leave the country without paying” their bills. Federal employees include
servicemembers, retirees, Department of Defense civilians and foreign servicemembers.
The rate increases affect phone service subscribers throughout Korea,
but the residents of Hannam Village face a special problem.
Before April 15, the housing residents were required to pay a $6
installation fee and a $1.89 monthly rate.
Effective April 15, however, they were required to make one of three
choices:
Pay a $182 refundable deposit, and have their monthly rate remain
$1.89.
Pay a $45 nonrefundable application fee and a monthly rate of
$3.91.
Pay no deposit and a monthly rate of $6.77.
If the housing residents didn’t select one of the first two
options before April 15, the phone company automatically raised their monthly rate to
$6.77.
Yon Kimmel, a Hannam Village resident since June, said the change was
very frustrating.
When the Kimmels moved in, they paid $6 to have their phone service
installed and their monthly usage fee was $1.89. But their monthly charges jumped to $6.77
in February, two months before the April 15 deadline.
The 665 Hannam Village residents were supposed to have two months to
decide which plan they would accept, Sweeney said. Instead, they were billed incorrectly
starting in February.
Kimmel called the company to complain, saying they should have
announced the fee increase months before it actually took effect.
“They said if I pay a deposit … my [normal] fee would
return,” she said. “But what about the 99 percent of the people in Hannam
Village who didn’t even notice?”
Korea Telecom refunded the Kimmels for the February and March
charges, and she chose to pay the deposit rather than pay the increased monthly charge.
Others aren’t ready to pay the deposit.
“How many people actually have $200 lying around waiting to pay
for a service you already have?” asked Tech. Sgt. Teresa Stafford, an information
manager on Yongsan. Stafford and her family have lived in Hannam Village for almost a
year.
Stafford thinks the fee should be reserved for new customers.
“Residents who had service prior to that date should be exempt.
It’s not our fault the phone company had screwed up financial [records]. It seems as
though we’re being penalized for having the service.”
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