Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (637)	7/11/2000 9:52:55 AM
From: slacker711	Read Replies (3) \| Respond to of 197563

I think that this explains some of the sub loss seen in Korea.... "We have reduced the number of handsets that we supply to our distributors in an attempt to retard the growth of new subscribers. We also scrapped the installment payment plan for new handsets," said a company spokesperson. In addition, the company let go of some 300,000 subscribers with bad credit records. " koreaherald.co.kr SK Telecom seeks extension of deadline to bring down market share to 50% SK Telecom is appealing for a deadline extension to an order by the Fair Trade Commission (FCC) last April that it bring down its market share to 50 percent by the end of next May as a condition for its merger with Shinsegi Telecomm (ST). The wireless telecom leader with some 57 percent market share recently requested the FCC to extend the compliance date by a year to end of May 2002, arguing that the elimination of handset subsidies and Korea Telecom-Hansol M.com merger have changed market conditions. The combined market share of SKT and ST, which stood at 57.9 percent in April, has shown no significant decline since the April ruling. The figures for May and June stand at 57.6 percent and 57.5 percent, respectively. The main reason for this is the ban on handset subsidies starting June which has more or less equalized the pattern of decline or increase in market share among the five wireless operators. SKT argued that the KT-Hansol M.com merger has eliminated the distinction between the fixed-line and wireless business and that focusing only on wireless market share was unfair. "We have reduced the number of handsets that we supply to our distributors in an attempt to retard the growth of new subscribers. We also scrapped the installment payment plan for new handsets," said a company spokesperson. In addition, the company let go of some 300,000 subscribers with bad credit records. "Despite our good-faith attempt to drop market share, based on our performance in the last couple of months, we don't think we will be able to meet the current deadline," said the spokesperson in explaining the appeal filed with the FCC June 15, which was the last possible date that the company could file the appeal on the April ruling. The company's competitors are unanimous in their opposition to the appeal, questioning SKT's will to reduce its market share in the first place. "They are selling their products on equal terms with the rest of the market and claiming their market share is not declining," said an industry official. Meanwhile, the FCC could take as long as 90 days to issue a verdict, meaning that it could be mid-September before a ruling is made. "We've asked SKT to produce convincing evidence as to if and why it is absolutely impossible to meet the deadline," said a FCC official. An official at the Ministry of Information and Communication said that it is too early to comment on the matter but that it would pay close attention to the FCC's moves.