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Some speculate that phone retailers are resorting to these tactics because of the impending, new government policy regarding handset subsidies. The new policy, which won't take place until October, will have the government regulating subsidies more strictly. A subsidy is a sum of money provided to a retailer in order to ensure low prices for the customer. Because of these subsidies, phone retailers are able to provide discounts on phones when a customer subscribes to a new contract. Korean mobile carriers have been abusing the use of subsidies however, offering discounts that go beyond the sum allowed by the government in order to gain more money. The new policy will aim to fix these problems with subsidies, but until it is put into place, retailers are attempting to capitalize and gather as many customers as possible.