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As July 1 nears, telecom bundling begins

June 14,2007
The first “bundled” telecom service after laws were changed earlier this year will come from SK Telink and C&M. The service will lump phone, Internet and cable broadcasting into one package, offering up to a 25 percent savings for customers.
The two companies announced yesterday that they will begin offering a “bundle” service comprised of SK Telink’s Internet phone service and C&M’s high-speed Internet and digital broadcasting cable services.
C&M is a cable broadcasting company that owns 15 regional cable broadcasting stations in Seoul and Gyeonggi Province. Currently, the company offers cable service to some 2 million households. SK Telink is a subsidiary of SK Telecom.
According to SK Telink, users who subscribe to the bundled service will be able to save 10 percent on digital broadcasting fees, 10 percent on broadband fees and 40 percent on the basic cost of Internet phone usage, for an overall savings of 25 percent.
The two companies will also offer two-service bundle services, such as Internet phone and broadband, or Internet phone and digital broadcasting.
The joint service will be the first of its kind because until July 1, not all companies were able to sell bundled products. Industry giants like KT and SK Telecom were not allowed to sell package deals because they had a head start in the industry and regulators feared they could form monopolies.
Revisions in telecom laws, however, now enable all companies to offer bundled services, including cable television service providers.
The Information Ministry decided to allow such services so that users could reduce massive telecom bills.
“In order to expand Internet phone services to the general public, we are also working on commercial services in conjunction with other cable broadcasters. In the future, we will be offering additional services such as those that link Internet phone services with mobile,” said Hong Seong-gyun, a senior executive at SK Telink.

By Wohn Dong-hee Staff Writer [wohn@joongang.co.kr]



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