Ministry to raise SK Telecom service fees
koreaherald.co.kr
Ministry to raise SK Telecom service fees
Information and Communi-cation Minister Chin Dae-je said yesterday that he would introduce a new policy charging SK Telecom, the country's largest mobile carrier, more for network usage as part of efforts to help smaller carriers stay competitive.
In a regular monthly briefing Minister Chin said the policy, to be implemented within this year, is aimed at spurring competition in the mobile market, referring to the lopsided structure in which SK Telecom continues to dominate over KTF and LG Telecom.
Chin also said the ministry would map out a specific plan to license the 2.3 GHz mobile Internet spectrum for wireless Internet services. In addition, the ministry is reviewing the possibility of utilizing the IMT-2000 Time Division Duplex spectrum, which is not actively being used by carriers, for 2.3 GHz services.
By allocating the IMT-2000 TDD spectrum to 2.3 GHz services, the ministry expects to increase the number of potential licensees to four, up from the current two. The so-called next-generation mobile Internet based on 2.3 GHz technology will be commercialized in 2005.
But Chin's policy to help out smaller carriers is likely to spark protest from SK Telecom. The Information Ministry already approved measures, such as number portability, that would benefit KTF and LG Telecom.
The heavier network usage fee is expected to deal another blow to SK Telecom, particularly at a time when analysts are issuing negative ratings on the company in connection with its move to enter the fixed-line telecom business.
Tuesday, SK Telecom bought commercial paper issued by Hanaro Telecom Inc., a move that it hopes will lead to a foreign capital injection for the beleaguered firm. But speculation is that SK Telecom is interested in entering the broadband and fixed-line fields in order to better compete with KT Corp., which controls the country's fixed-line network and the No. 2 wireless carrier KTF.
Minister Chin said he is reviewing IMT-2000 1x EV-DV technology, which is regarded as three-and-a-half generation technology compared with the third generation mobile service, EV-DO, that is widely available in Korea already.
He said the ministry might adopt EV-DV and HSDPA, an upgrade of W-CDMA 3G technology, as local standards.
SK Telecom and KTF are scheduled to roll out W-CDMA 3G services later this year, though critics and analysts say investment in the network infrastructure overlaps with the existing EV-DO network.
As for the fledgling satellite IMT-2000 technology, Chin revealed a plan to forge strategic partnership with European countries.
(insight@heraldm.com)
By Yang Sung-jin |
