Mobile Carriers’ Membership Points
What benefits can you get with your membership?
The ASSEMBLE Protocol is a blockchain-based global point integration platform that exploits ASM utility tokens, whilst establishing a business ecosystem that can integrate, utilize existing points and miles with point providers, consumers, and retailers.
Hello, dear readers!
Today we’re going to look at how some phone carriers have changed their membership plans. This can actually affect the value of the membership and cause consumers to change plans or even service providers. It’s very important to stay up to date on what benefits your membership provides so that you can take full advantage of it. Let’s check out the details below!
Membership Points
The membership benefits offered by phone carriers have been decreasing every year. Last year, KT members could use their points to order a coffee one size larger for free at Starbucks once a week. However, it has since been changed to once a month. LG U+ also ended its partnership with Starbucks in July of last year.
LG U+ consolidated and reduced the services provided to VVIP members. They ended their transportation benefit, which gave 3,000 KRW to users of T-money and they also stopped Lotte Cinema’s integrated monthly reservation service, which allowed users to see one free movie a month. Finally, they ended the service to watch one free movie a month at Megabox as well.
From the first of the month, SK Telecom reduced the benefits of FLO, their music platform, by only allowing members to listen to 100 songs per month rather than 300 songs per month.
There are many different kinds of points, but the membership points of the telecommunication companies that are disappearing due to a reduction of services are worth 500 billion KRW every year. As the benefits of telecommunication companies’ membership points are steadily being reduced or discontinued, experts recommend consumers carefully examine what benefits have changed so they can still enjoy the perks of membership.
Mobile carriers provide 791 billion KRW worth of membership points to members, but the amount that expires before consumers can use them amounts to 474.5 billion KRW (59.9%). From the perspective of mobile carriers, consumers don’t have property rights to membership points because they are being offered free of charge to customers as a service. On the other hand, consumers recognize points as their property since they can be used in connection with telecommunication fees. According to the IFRS (International Financial Reporting Standards) Foundation, the company must account for the deferred income when giving points. Therefore, the membership points can be viewed as a bond that allows consumers to claim benefits equal to their value from the carrier. We would like to suggest ways to improve the use of membership points by examining the nature of membership points and the methods of managing point accumulation, point use, and point expiration for mobile carriers and credit card companies.
Membership levels for telecommunication companies are calculated according to the annual usage amount. Items included in this annual usage amount are mobile data, home phone, internet, internet phone, and IPTV. It is calculated based on the last 12 months.
