Mobile firms gearing up for battle for subscribers

The prospect of more intense competition has caused mobile communications service providers to step up services. With number portability erasing part of what has been a brand image, Korea’s three mobile service providers are battling to come up with innovative services to lure new subscribers and keep those they have. Portability allows mobile phone users to keep the same number even if they move to another carrier; it is scheduled to be introduced next year, The new efforts range from investing in infrastructure to raising the quality of connections to loyalty plans similar to airline frequent-flier plans. Companies are also considering lowering monthly call rates and increasing subsidies for handset purchases. An official at one mobile carrier said, “All the companies are worried; poor service will now mean losing customers.” SK Telecom Co. yesterday began awarding customers points on 3 percent of their fuel purchases at gas stations affiliated with SK Corp. The points can be used to buy products or get discounts at firms partnered with SK Telecom. KTF Co. invested 200 billion won ($170 million) in new relay stations to improve the quality and speed of connections. The company said it would revise its fee structure to help subscribers choose the best plan for them. LG Telecom Ltd. early last month introduced services for picking up a faulty handset for repair and returning it to the user. The customer is given a temporary phone to use. The company started an online banking service in September in partnership with Kookmin Bank. All three carriers are reportedly preparing to bring mobile phones with cameras that cost less than 300,000 won to market. All camera phones currently on the market cost more than 300,000 won. Number portability will be activated in three stages starting in January. At first only SK Telecom’s numbers will become portable. In July, KTF’s numbers will join the system; LG Telecom users will have to wait until 2005. SK is the market leader, KTF is a close second and LG, a distant third. by Kwon Hyuk-joo