Wednesday, October 14, 2009

Mergers in Korea's Telecoms Sector

An article in the Korea Times, accompanied by a nice graphic, depicts the major shifts taking place in South Korea's telecommunications sector. In order to effectively compete in a market characterized by rapid convergence and in which the ability to sell bundled digital services will determine success, several major companies have merged or will soon merge. As shown in the accompanying graphic, the mergers began with KT absorbing its mobile affiliate, KTF. More recently, it was announced that three units of the LG Group will merge. As the Korea Times article spells out, it appears to be only a matter of time before SK Telecom merges with SK Broadband.
As broadband internet, fixed line telephony and mobile internet service all converge, it seems apparent that the mobile communications market will be reshaped into one in which content, applications and software make up the main arena for competition. This is in line with global trends.

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