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Korean investigation of SK Telecom
launched
SEOUL - South Korea's
telecom regulator began an intensive probe into alleged
illegal business practices by the nation's top mobile
carrier, SK Telecom Co.
The Korea Communications
Commission (KCC), an affiliate of the Ministry of
Information and Communication, confirmed on Thursday
that it started investigating the wireless operator as
part of its inquiry into the suspected practice of
offering mobile handset subsidies.
"We have
received many outside reports to initiate the probe.
Because the investigation is now under way, we can't
reveal details," a KCC official said.
South
Korea has banned mobile operators from granting handset
subsidies in an effort to prevent unfair competition in
the crowded telecom industry.
Violators can be
ordered to pay up to 200 million won (US$169,000) in
fines or be forced to suspend their businesses for a
limited period.
Since last month, the KCC has
investigated KTF Co and LG Telecom Ltd, the country's
second- and third-largest mobile carriers, on
allegations of providing illegal handset subsidies.
However, the telecom regulator didn't begin
investigating SK Telecom at the time, citing lack of
evidence. KTF and LG Telecom have demanded that the KCC
look into SK Telecom's alleged illegal business
practices.
Ahead of a new rule that lets
customers keep their phone numbers while switching
operators, South Korean mobile operators have been
scrambling to prevent a potential migration of
subscribers.
The new rule is designed to help
runner-up operators, such as KTF and LG Telecom, better
compete with SK Telecom. Starting next January, the
so-called number portability rule allows SK Telecom
customers to change to KTF or LG Telecom, but SK Telecom
will be banned from accepting new subscribers from the
two competitors for a year.
To hold onto current
subscribers, SK Telecom is now engaged in a big
promotional campaign, and allegedly offering high-end
handsets and free minutes.
As of the end of
October, SK Telecom had 18.08 million wireless users,
while rivals KTF and LG Telecom had 10.45 million and
4.74 million, respectively.
(Asia Pulse/Yonhap)
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