To: slacker711 who wrote (27372 ) 10/2/2002 8:22:08 PM From: waitwatchwander Respond to of 197246 LGT, KTF increase number of phone subscribers in September koreaherald.co.kr Korea's mobile industry saw LG Telecom and KTF advance their market share in September when the competition for covert handset subsidies intensified, industry sources said. LG Telecom, a major wireless service provider, attracted a total of 421,000 subscribers last month, while 122,000 users canceled their subscriptions, for a net increase of 299,000. LG Telecom's total number of subscribers rose from 4.406 million at the end of August to 4.705 million by end-September. The company, which has long staged an uphill battle with KTF and SK Telecom, launched a massive advertising campaign aimed at boosting its corporate image. LG Telecom is also seeking to improve the quality of its service by installing mini relay stations across the nation, particularly where its subscribers complain about poor signal and call interruptions. The company's move to tackle the poor quality of calls and the negative public perception went hand in hand with its new subscription packages. In late July, LG Telecom slashed its rates by introducing low-priced subscription packages that suit the different calling patterns of subscribers. A new package named "Mini" is the lowest priced service in the domestic market, with its basic monthly subscription fee set at 6,000 won. But the calling rate is the highest in the country, as Mini subscribers have to pay 39 won per 10 seconds. In other words, subscribers can get the most economy from the package by minimizing outbound calls. The introduction of LG Telecom's low-priced packages were designed to take a preemptive rate cut, as civic groups and subscribers are ratcheting up pressure on SK Telecom and other mobile carriers to slash mobile phone rates. Meanwhile, KTF, the country's second largest mobile carrier, attracted 507,000 subscribers in September, marking the largest monthly increase. The company said it lost 257,000 subscribers last month, translating into a net increase of 250,000 users. The accumulated number of subscribers stood at 10.378 million in end-September. LG Telecom and KTF witnessed higher-than-expected subscriber changes in September, while SK Telecom, the country's largest mobile carrier, underwent a slowdown in terms of user growth rate. SK Telecom, which virtually controls the country's mobile market with its 011 and 017 services, said it attracted 393,000 subscribers and lost 188,000 users in September. The net increase was 205,000 in September, which is lower than the average growth rate this year. The accumulated number of users stood at 16.909 million by end-September. In the year to August, SK Telecom carved out a 48.4 percent share in terms of new subscribers, while KTF maintained a 35.8 percent share and LG Telecom secured a 15.8 percent share. But September saw the structure change as KTF grabbed a 38.4 percent of total new subscribers, followed by LG Telecom with 31.9 percent and SK Telecom with 29.7 percent. SK Telecom officials argued that the change in the number of new subscribers is due to illegal handset subsidies by other carriers. LG Telecom and KTF, however, claimed that the increase in users in the month of September is due to their sophisticated marketing campaigns. The Korean government officially bans mobile carriers from offering handset subsidies in an attempt to block excessive marketing. In the past, mobile carriers were allowed to offer heavily subsidized handsets to new subscribers; in return, those subscribers would have to sign up for an obligatory subscription package of up to two years. The problem is that many local mobile users are still reluctant to pay the full price of handsets, many of which are now priced at more than 500,000 won. Samsung Electronics and LG Electronics are churning out new handset models with color-screen flat panels, multimedia functions and small digital cameras. Analysts are divided over whether the government should loosen the regulations on the handset subsidies in order to offer low-priced handsets to subscribers or maintain the ban to block carriers from engaging in excessive competition. (insight@koreaherald.co.kr) By Yang Sung-jin Staff reporter 2002.10.03 Subscribers, (market share) and [% growth] @ end of September SK Telecom 16.909 million (52.9%) [29.7%] KT Freetel 10.378 million (32.4%) [35.8%] LG Telecom 4.705 million (14.7%) [31.9%] It looks like LG was the big winner last month at the expense of SK and KTF is holding their share with slightly higher % growth than % marketshare.