Government rejects plan for new mobile carrier

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Government rejects plan for new mobile carrier

Korea’s communications watchdog yesterday turned down bids by two local firms to set up the country’s fourth mobile operator, citing their insufficient financing.

Following evaluations of proposals submitted by Korea Mobile Internet and Internet Space Time, the Korea Communications Commission concluded the two firms were inadequate candidates for its plan to approve a new market player.

Both firms were excessively optimistic in their market outlook, and their financing and technology development plans were unclear, according to the KCC.

The decision marks the fourth time the watchdog has failed to select a fourth mobile operator as part of its efforts to spur industry competition and promote homegrown wireless broadband technology.

The local mobile industry is currently controlled by three major players - SK Telecom, KT and LG U+. Critics have raised concerns that their market dominance has triggered excessive marketing and jacked up fees for consumers.

The ministry of future creation and science in the incoming Park Geun-hye administration is set to take over the task of selecting a fourth mobile operator when her government launches in February.

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