Tuesday, November 18, 2008

Broadband Convergence Update

The Joongang Daily reports that IPTV operators are "baiting subscribers with cash." With local high-speed Internet service providers using cash gifts as a marketing ploy again, experts warn that the industry faces cutthroat competition which is likely to harm subscribers. Since IPTV and Internet telephony are provided on broadband networks, Internet subscriber numbers are crucial to success. Currently, nationwide sales agencies of the country’s three major high-speed Internet service providers - KT, SK Broadband and LG Powercomm - all provide up to 200,000 won ($147) in cash or other high-value gifts such as the Nintendo Wii game console depending on the number of services people take and their subscription length. For example, SK Broadband offers 190,000 won in cash to subscribers who sign up for its triple-play service - Internet, IPTV and Internet telephony - for three years.

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