SEOUL, KOREA - E-Mart, the No. 1 retail mart in Korea, launched into an MVNO phone business, following the earlier entry by convenience stores, Homeplus and post offices.
E-Mart declared an aggressive marketing, with focus on cheap basic fees, about 47 percent lower than those offered by existing telecom companies. E-Mart will also offer a discount in telecom fees whenever the users of its MVNO phones do shopping.
Market experts predict that the potential is high for existing telecom companies to reduce their telecom fees from a mid- and long-term perspective, due to E-Mart's entry into the MVNO phone market.
E-Mart announced that it will start selling its MVNO phones at 80 stores starting from October 17. E-Mart plans to sell MVNO phones at all of its stores nationwide from next year.
MVNO phone service attracts suscribers by borrowing the telecommunication network of existing mobile operators, thereby costing no facility investment. MVNO service, accordingly, has cheap rate system.
