4th Mobile Telecom Operator Unlikely to Emerge
4th Mobile Telecom Operator Unlikely to Emerge
  • Korea IT Times
  • 승인 2015.06.10 19:06
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The government's bid to allow one more mobile telecommunications service operator to the current tripartite structure has been criticized by experts.

In a public hearing on public policy to encourage competition in mobile telecom service market sponsored by the Ministry of Science, ICT, and Future Planning held on June 9 at the Korea Chamber of Commerce and Industry building in Seoul, most participants were skeptical about the government's plan to select a fourth wireless communications service provider.

Prof. Kim Nam of the School of Information and Communication Engineering, Chungbuk National University said, "Until the early 2000s, the number of mobile service firms was five but the government cut it to three saying it was too much. It's understandable that the government wanted to shake up the current market structure fixed at three oligopolistic players, but I wonder how many bidders will put up 3-4 trillion won of initial investment cost."

Lee Nae-chan, economics professor at Hansung University, commented, "If the government is indeed willing to give out a mobile license, it must above all lower the entry requirement. Otherwise, the government should take the full blame for not finding suitors."

Kang Jeong-hwa, chairman of the Consumers Union of Korea who took part in the public hearing to represent the voice of consumers, said, "It is unlikely for a new operator to effectively compete with incumbents based on low prices. I am worried whether a competent entrant will emerge and provide differentiated services."


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