A fluid phone market gives LG a big boost

The number of mobile phone subscribers who switched to another service provider without changing their phone number has exceeded 10 million in the two years since a system for doing so was established, the Ministry of Information and Communication said yesterday. As of March 19, the number of Korea’s mobile phone subscribers who had switched their mobile operator stood at 10.3 million. Under what is called the “number portability system,” which was partially launched two years ago, mobile phone subscribers are allowed to change service carriers while keeping their old numbers. In January 2004, the government made it possible for SK Telecom Co. and KTF Co. users to cancel their service and sign up with the third-tier provider, LG Telecom Inc. Last January, all three carriers were given the right to operate under the system. The system was meant to spur competition among the nation’s three mobile carriers because customers tended to stick to the top player, SK Telecom. The hassle of changing one’s phone number meant it was difficult for smaller companies to break into the market once consumers settled in with one provider. The mobile service carrier that won the most from the system was LG. All losses and gains put together, KTF gained only 300,000 subscribers, LG earned 1.1 million while SK lost 1.6 million. Broken down, KTF snatched almost 3.9 million people from its rivals ― 3.2 million from SK Telecom and 700,000 from LG Telecom ― but lost 3.6 million subscribers. SK Telecom lost almost 5 million users. LG lost 1.7 million subscribers. by Seo Ji-eun