SK Telecom requests sanction for alleged excessive handset subsidies

Reuters

SK Telecom Co. (Seoul, South Korea) requested on Wednesday that regulators sanction KT Corp (Seongnam, South Korea) and LG Uplus (Seoul, South Korea) for allegedly hurting competition with excessive handset purchase subsidies.

SK Telecom, which controls more than half of the country's mobile phone market, asked the Korea Communications Commission to probe marketing activities by KT Corp and LG Uplus, to which it lost a net 23,800 customers from the beginning of May to June 14.

"(We) need prompt and selective measures aimed at operators promoting excessive competition in a bid to achieve the government's goal of curtailing marketing costs and boosting investment," SK Telecom said in a statement.

The complaint comes after SK Telecom announced a mobile tariff savings plan worth $696 million annually earlier this month as it came under pressure from the government trying to tame high inflation.

It said KT was spending as much as $684 in subsidies per customer to lure new smartphone subscribers.

KT had no immediate comment and officials at LG Uplus were not available for comment.

(Reporting by Miyoung Kim)

ArticleTools

Featured Reports

Understanding and Capitalizing Upon Telecom APIs for Communications Enabled Applications
Big Data and Analytics software and applications will play a crucial role in making IoT a success. The data generated through sensors embedded in various things/objects will generate massive amounts of unstructured (big) data on real-time basis that holds the promise for intelligence and insights for dramatically improved decision processes.

Content Delivery Networks (CDN) 2015
Content Delivery Networks (CDN) represent large distributed system of servers deployed in multiple data centers across the Internet. CDNs provide solutions for efficiently and effectively managing content of all types. Solutions include core services such as aggregation, management, and distribution of content as well as a variety of value-added functionality.

Technologies Impacting and Impacted by Operational Support Systems (OSS)
There are significant changes underway in the CSP industry that are causing fundamental re-evaluations of business models, technology stacks and service offerings. This research assesses a range of relatively nascent technologies that have the potential to change the dynamic of OSS, whether via the networks they manage, or as building blocks on which to build better OSS tools.

Market Opportunity: Big Data in the Internet of Things
Big Data and Analytics software and applications will play a crucial role in making IoT a success. The data generated through sensors embedded in various things/objects will generate massive amounts of unstructured (big) data on real-time basis that holds the promise for intelligence and insights for dramatically improved decision processes.

Concise, Practical Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

Featured Events & Partners

GEN 15
Nov. 16-19, 2015

Omni Hotel, Dallas, Texas

The global gathering of networking professionals enabling the future of agile, assured and orchestrated services powered by CE 2.0, LSO (Lifecycle Service Orchestration), SDN and NFV.

Visit event website...
 

 

Business Wire