Domestic telecom industry buoyed by hopes for access to N.K. market
The telecom industry is riding high on reports that the North Korean government is to
enact a law concerning mobile phone services, as they hope to move into the market
themselves.
An expert, well informed about North Korean telecom affairs, said yesterday that the
North Korean government is preparing the law which will govern the selection of
operators and their businesses, and that the framework had already been set.
"They are currently working on ordinances of the law, under which mobile phone service
operators will be selected, possibly within this year," the expert said on the condition of
anonymity.
A high-ranking official of the Ministry of Information and Communication also said,
"South and North Korean officials discussed cooperating in the telecom sector when
President Kim Dae-jung visited Pyongyang last year. I understand that at the time, the
North wished to construct infrastructure for a mobile phone service rather than a wired
phone network."
Following the report, South Korean telecom companies, which have prepared for the
North Korean advance by forming special task forces, have made haste in setting up
specific strategies to occupy the market.
SK Telecom (SKT), the South's largest mobile-phone company, plans to dispatch a
delegation to Pyongyang soon to discuss ways it can cooperate with North Korea in the
telecom industry.
SKT has been eyeing an advance into the North Korean telecom market since last year
by forming a special task force headed by Executive Director Koo Hae-woo, an expert
on North Korean affairs.
"The delegation will visit Pyongyang as soon as next month or April," said Shin
Young-chul, chief of SKT's public relations team. "According to the outcome of the visit,
our company could begin to provide a mobile phone service in the North within this
year."
SKT expects that if the mobile phone service were introduced to North Korea, the
company could see a great synergy effect in tandem with its plan to offer mobile phone
roaming services linking Korea, Japan and China.
Korea Telecom is also engaged in working-level negotiations with North Korean
authorities to launch a telecom service in the North. The company began providing an
international service connecting Mt. Kumgang and the South last year.
In addition, Onse Telecom is seeking to advance into the North Korean market jointly
with Hyundai Electronics Industries.
However, the ministry warns that a reckless rush of South Korean companies to the
North may result in adverse side effects and is considering forming a committee to
serve as a unified window for inter-Korean cooperation in the telecom industry.
A telecom expert also said that even if the North introduces the mobile phone service, it
would not allow South Korean operators to hold stakes in their companies.
"So, telecom companies would do better to form a joint negotiating team and discuss
the investments and economic efficiency of the North Korean project rather than
negotiating directly with North Korean authorities," he advised.
(hsshine@koreaherald.co.kr By Shin Hye-son Staff reporter |
