LG, KTF Battle for Expanding Market Share
The struggle between KTF and LG Telecom, the second and third largest mobile
carriers, concerning telecom industry regulations looked likely to intensify after a recent
flurry of aggressive statements.
In a 31-page document Tuesday, LG Telecom argued that KTF must be treated as an
oligopoly in league with market leader SK Telecom.
``The government's lack of both a creative policy and an accurate understanding of the
telecoms industry has spawned a monopolistic market environment,'' LG said.
So far, LG Telecom's sights have been confined to SK Telecom, but the move is seen
as being a step toward gaining the upper hand in the public opinion war.
LG Telecom, which won the third and last third-generation (3G) mobile phone license
last August, has been trying to persuade the government to continue its market share
restrictions on dominant mobile carriers until LG itself raises its market share to 20
percent.
As part of efforts to encourage LG Telecom to re-bid for the 3G license last August,
the Ministry of Information and Communication (MIC) promised a variety of favors to
the company. However, the ministry is still in a dilemma how to translate into action its
guarantees without enraging LG's competitors.
Against LG's move, KTF, which has up until now adopted a wait-and-see attitude, hit
back immediately. ``KTF is not an oligopoly under current antitrust laws,'' said company
spokesperson Lee Byong-moo.
In addition, the company is broadly in favor of LG's proposal to impose differentiated
regulations on different sized mobile players, but its specifications are in sharp contrast
to those of LG.
At first, KTF opposed LG's appeal to retain market share restriction on SK Telecom
and KTF, saying it is against market principles and capitalist economic theory.
Secondly, the company denounced its rival's suggestion that the government should give
priority to LG Telecom, including provision of its mobile phone service to public sector
businesses.
``That argument has no legal ground and is likely to infringe upon consumers' right to
freely choose their needed service,'' KTF pointed out.
kdh@koreatimes.co.kr
ÀԷ½ð£ 2001/09/20 17:08
hankooki.com |
