The South Korean government is expected to announce its support plan for fourth mobile carriers in a bid to reduce telecommunications costs in the nation, according to local market observers.
Backing the new comers is expected to lay the ground for fostering more competition in the local telecom market dominated by the top three operators including SK Telecom, KT and LG Uplus.
“We are reviewing support plans for fourth mobile carriers in European countries including the U.K., France and Spain,” said an official from the Ministry of Science, ICT and Future Planning.
The government is aiming at reducing telecommunications costs, boosting network investment and developing innovative services by bringing new comers into competition with the existing dominant players.
The support plans for fourth mobile phone operators are expected to be frequency allocation priority, roaming service support and interconnection charge. Through the roaming service, the three carriers will allow the new fourth mobile carrier to use their networks.
“Market barriers are high in the local telecom industry because it costs a lot of money to build communications equipment and requires frequency, which is limited. New comers need the government support until they secure enough subscribers,” a government official said.
By Lee Kyung-ho
