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

To: foundation who wrote (15654)	10/10/2001 7:30:39 AM
From: foundation	Read Replies (1) \| Respond to of 196668

SK Telecom and SK-Shinsegi Post 1.9 Tril. Won in Profit SK Telecom and its unlisted sister company SK-Shinsegi Telecomm posted 1.86 trillion won in cumulative profit since their inauguration of mobile phone service, a report revealed yesterday. The results carried in a preliminary report released by the Korea Information Society Development Institute (KISDI), which offered numerical evidence on the possible cut in mobile phone rates. According to the report, KTF, the mobile arm of state-run Korea Telecom, incurred a 1.2 trillion won cumulative loss and the smallest player, LG Telecom, has lost 728.4 billion won by the end of last year. KISDI official Lee Rae-chan, in charge of supervising the report, said mobile operators still suffered from heavy losses incurred in the past, except SK Telecom. In terms of cost compensation rates, SK Telecom showed the highest profitability of 122.6 percent, while the two runner-ups KTF and LG Telecom marked 87.8 percent and 84.3 percent. The report said monthly household expenditure on communication services has increased to 88,000 won for the first-half of this year. Of them, mobile phone services accounted for 59.3 percent or a 52,000 won monthly average household spending. Lee said the level of domestic mobile phone rates were somewhat lower compared with an average price in advanced countries of the Organization for Economic Cooperation Development (OECD). When it considers no reduction in mobile phone rates, a collective revenue from the phone service of three operators is estimated at around 12.1 trillion won, the report said. In case of a lowering of one percent in basic rates, mobile carriers would lose between 38.4 billion won to 45.7 billion won, Lee said. ``Despite cumulative losses of mobile carriers, many consumers point out that phone charges were too expensive, and it could cause pressure on inflation rates,'' he said. Mobile operators have opposed reducing charges as they wanted to compensate for their weakened profit margin and invest in infrastructure improvements for the pricey third-generation phone network. kdh@koreatimes.co.kr ÀÔ·Â½Ã°£ 2001/10/10 19:07 hankooki.com