toclair@ittimes.co.kr
KT has made a success in the mobile communication business in Russia's Maritime Province, writing a new chapter in joint overseas communication markets for domestic communication providers.
KT said on July 29 that its subsidiary in Russia's Maritime Province, New Telephone Company (NTC), has over 1 million subscribers.
Such a successful performance of NTC is a significant case of South Korean telecommunication service advancement into the world market. It is meaningful in that KT, a South Korean wired communication provider, has made a success through competition with local nationwide companies in the field of GSM.
NTC is a general telecommunication company which provides mobile communication, telephone and Internet in the Maritime Province. KT purchased about 80 percent stake of the company in 1997. At the time of the purchase, NTC was suffering from a deficit, but KT made NTC see black ink three years after the takeover. NTC shifted its focus to mobile communication from wired business. The company made rapid growth and in 2001 it ranked the first in market share of the province. The company has achieved continuous development by expanding its subscriber base with aggressive investment. But as MTS, Russia's largest company, and Megafon, the third-largest company, advanced into the province NTC's market share once dropped to 30 percent and there was a talk of its sale.
However, NTC outdid its rivals after KT reorganized the lineup, improved conversation quality and developed various services such as introduction of Russia's first ring tone service. Besides, KT has settled its position in the community as a responsible company through community service programs such as preserving the environment and helping needy people, preparing a cornerstone for its continuous growth.
Based on such performance the company received an award from the province for the highest performance during the year in 2005. NTC paid US$2.37 million, or 10.1 percent of its profit for the quarter, to KT as a dividend last year for the first time. As of the end of June, NTC ranked first with 43 percent in terms of market share and is known as the top mobile telecommunication provider in the Maritime Province.
At a ceremony to celebrate the company's subscribers passing the one million mark, Lee Li-na, a banker who was the 1 millionth subscriber, received a gift worth about 40 million won. During the event Kim Yeong-taek, CEO of NTC, said: "The company could own more than 1 million subscribers thanks to efforts of NTC engineers and marketing staff. About 450 staff have achieved such good results amid fierce competition with earlier starters. We will continuously take care of every one of the customers with our best in the future."
KT CEO Nam Joong-soo said: "It is not easy for the South Korean company to maintain the top position in the mobile telecommunication service sector with fierce competition in a foreign nation, through services, not products. It is meaningful in that we have achieved such a good performance amid fierce competition with large nationwide companies through excellence of services and localization of services."
Vladivostok Vice-Governor Melinicov Aleg, who was present to celebrate the event, said: "NTC has produced a good result due to harmonious cooperation of South Korean and Russian workers. I hope KT will advance further into wider Russian regions as well as Vladivostok in the future."
In the meantime, KT plans to continuously develop the future driving force for growth through emerging market-oriented strategic overseas investment and will seek opportunities for overseas investment in fields in which it can make use of its core capacity and accumulated business experience to the full.
