North Korea's border towns see a surge in fixed line subscriptions

Border towns in North Korea's North Pyongan Province are reportedly witnessing a demand surge for fixed line telephone services, as restrictions on the movement of goods from China have gradually been loosened since last year.

According to Daily NK, the easing of border controls has led to an increase in commercial traffic in nearby areas such as Sinuiju, Ryongchon, Uiju and Cholsan. As a result, more wholesalers in these areas have installed two phones at home, as landline services are cheaper than mobile services.

Furthermore, the report said more families in North Pyongan want to install their own home phone instead of sharing one with another family due to privacy concerns.

High cost of installation

Post offices in the province have been overwhelmed with requests for fixed line installations since the beginning of the year. This consequently prompted the provincial Post and Telecommunications Bureau to direct post offices under its jurisdiction to meet their annual revenue targets in the first quarter.

With the high demand, the bureau has raised the installation cost for a fixed line service. Citing anonymous sources, the Daily NK reported that installation of a home phone costs between $350 and $450 in Sinuiju and between $400 and $500 in Ryongchon County. These rates are twice the installation cost in the capital Pyongyang, where charges for setting up a fixed lined telephone are between $100 and $250.

"Goods imported from China have to pass through customs in Sinuiju before being distributed throughout the country, making Ryongchon County a major bottleneck for shipping. Since it's the area where goods are distributed the fastest and wholesale prices are set, home phones are in high demand and installation prices are also high," a source told Daily NK.

With North Korea being closed off to the outside world, it is difficult to get recent information about the country's telecom sector.

Based on the CIA's World Factbook, the country is estimated to have 1.18 million fixed line subscribers, representing 5% of the population, as of 2021. On the other hand, it placed North Korea's mobile subscribers to about 6 million during the same time period, representing 23% of the market.