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KT claims LG Uplus is still taking on new customers despite ban

9 Jan 2013

South Korea’s KT Corp is understood to have reported rival LG Uplus to the local telecoms watchdog amid allegations that the latter has signed up new subscribers despite an ongoing suspension from doing so. A press release issued by KT Corp was cited by Yonhap News as saying: ‘KT has submitted a report to the Korea Communications Commission (KCC) requesting a strict measure on LG Uplus, which has been receiving subscribers through illegal means despite its business suspension stemming from excessive subsidy payments.’

As noted by ZDNet, LG Uplus is the first of the country’s mobile network operators to find itself blocked from taking on new subscribers, with the cellco handed a 24-day suspension by the regulator as a punishment for using discriminative mobile subsidies to attract customers. SK Telecom and KT are, meanwhile, set to face similar penalties, with the duo to be restricted from adding new connections for 22 days and 20 days respectively.

In response to the allegations made against it regarding illegal sign ups, LG Uplus is understood to have said that it has asked retailers to stop offering its subscriptions for the duration of its sign-up ban, and claims it will take action against those which do not do so. Further, the operator was cited as saying that it ‘regrets that its rival firm exaggerated the situation’ and has said it aims to ensure it complies with the orders issued to it by the KCC.

South Korea, KT Corp, LG Uplus, SK Telecom (SKT)

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