Friday, May 29, 2015

Government to open mobile market to a new, fourth player

As reported widely in the local press, including the Korea Joongang Daily the Korean government has decided to allow a fourth player into the mobile telecommunications market.  According to the article,"The government Thursday introduced a plan to allow a fourth telecom into the Korean mobile telecommunications market, which has been dominated by SK Telecom, KT and LG U+. The government said an additional player will trigger competition and lower monthly telecom bills." The Korea Joongang Daily went on to note that "Cutting back household spending on telecom bills was one of President Park Geun-hye’s election pledges in December 2012. “Looking at overseas examples like France, Spain and Japan, those countries succeeded in reducing household telecom bills by up to 43.9 percent last year, when compared to the past when there was no new carrier,” said Cho Gyu-jo, director of the ICT Ministry’s telecommunications policy division." (click on the accompanying graphic to see a full size version)
Not surprisingly, the government's announcement of this move was opposed by the three existing carriers, who argue that competition is already overheated and that the addition of another carrier is only likely to increase such competition.

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