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SKT defection slowing

23 Mar 2004

The number of customers taking advantage of mobile number portability (MNP) to leave South Korea’s largest cellco SK Telecom (SKT) has fallen considerably, less than three months since the option was introduced. According to the Ministry of Information and Communication 122,422 users defected from SKT to its smaller rivals LG Telecom and KT FreeTel (KTF) in the first three weeks of this month, compared to the 305,267 that left in January. The Korea Communications Commission introduced MNP with the aim of infusing fresh momentum into South Korea’s saturated mobile market. Currently the rules only cover SKT’s subscribers; KTF and LG customers will gain MNP from July 2004 and January 2005 respectively. Since the new rules were implemented LG and KTF have both launched aggressive marketing and pricing initiatives in a bid to lure SKT customers. So far KTF has had the most success, taking 365,535 former SKT customers since the start of the year, compared to the 245,030 signed up by LG.

South Korea, LG Uplus, SK Telecom (SKT)

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