Korean Operators Warned Not to Subsidize Apple's iPhone 5

South Korea's telecoms regulator, the KCC, has issued warnings to the mobile networks that they face prosecution if they offer illegal handset subsidies on the forthcoming iPhone 5 smartphone.

The handset is due to go on sale in the country later this week, and the regulator said that this raises the temptation to offer illegal subsidies to lure customers. The warning followed reports that dealers have already started offering subsidies on the smartphone to customers who plan to switch mobile networks.