toclair@ittimes.co.kr
The Ministry of Information and Communication (MIC) promises to benefit customers by the end of this year by encouraging market monopolizing telecommunication companies to share their network with Mobile Virtual Network Operators (MVNOs). MVNO refers to a mobile service operator which does not have its own licensed network. Instead, it buys mobile capacity from network providers and signs up users under its own brand. Then, outfits without prohibitively expensive wireless pipelines can jump into the cell phone service market as long as they have nationwide sales organizations. The MIC's full plan is to help out MVNOs to join the market as new players to encourage competition and lower telecom fees.
Since the government is targeting the telecom companies that possess 50 or more percent of the communication market, this policy directly targets SK Telecom and KT. SK Telecom currently takes up more than 50% of the mobile communication market and KT takes up 90% of the broadband market as the most powerful broadband provider. With the plan, customers will be able to sign up for wireless telephony services provided by Samsung Electronics or Kookmin Bank at very low monthly rates by end of the year. "We hope to accommodate three wireless carriers to lease a certain portion of the networks to newcomers," Information and Communication Minister Rho Jun-hyong continued: "To do so, we will make public a revised bill this week which we hope the Assembly will pass late this year. Then, telecom rates will head south considerably."
