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Number portability applies to KTF today.

Asia Africa Intelligence Wire

| July 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From The Korea Herald)

By Kim Tong-hyung Top mobile-phone operator, SK Telecom Co., will be given a chance to win back subscribers as number portability is applied to No. 2 carrier KT Freetel Co. starting today.

Number portability, the ability to switch network operators without changing phone numbers, was introduced Jan. 1 and was applied at first only to SK Telecom, as regulators intended to strengthen the market positions of runner-up carriers KTF and LG Telecom Co. Number portability will be applied to LG Telecom starting in January next year.

Under the one-way system, SK Telecom lost more than 1.3 million subscribers to the rival companies and saw its market share drop to just over 51.5 percent from the 54.5 percent mark at the start of the year.

However, most industry insiders predict the churn rates, the number of subscribers who switch operators each month, to taper off during the second phase of number portability, with the government's intention of calming the hyper-competitive industry becoming increasingly evident.

In the heaviest penalty so far, the government hit the three mobile- phone operators with sign-up bans for a combined 100 days for providing illegal subsidies to lure customers. LG Telecom, currently under suspension, will be prevented from signing new subscribers through July 20, while KTF will serve its 30-day ban from July 21 to Aug. 10. SK Telecom will be hit with a 40-day suspension from Aug. 20 to Sept. 28.

Under the threat of severe punishment, SK Telecom even ended up promising to self-control its market share below 52.3 percent through 2005, although failing to identify any significant plans to materialize their claim.

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