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Press Release
At a press conference, Shin Bae Kim, president of SK Telecom, outlined SK Telecom’s role as the number one telecom operator in the domestic market.
SK Telecom hopes that some of the unnecessary disputes about market dominance and unprofitable marketing activities can be stamped out.
The company will concentrate on advancing into the international markets, creating new market demands, and facilitating customer convenience.
On May 25th, Shin Bae Kim, president of SK Telecom, announced, at a press conference in SK Telecom’s Head Office, that SK Telecom will maintain its market share below 52.3% until the end of 2005. This is the market share percentage reached at the time SK Telecom merged with Shinsegi Telecom.
President Kim commented "The mobile phone service market has been unstable for the five months since the introduction of the mobile number portability system. We decided to control our market share in order to reduce concerns about unlimited competition, and our possible market dominating position, after initiation of the mobile number portability system. In particular, SK Telecom decided to keep its market share below the percentage recorded at the time SK Telecom merged with Shinsegi Telecom in order to eliminate concerns about its dominance of the market after the merger".
President Kim also said, "We will keep this promise until the end of 2005, in order to provide enough time for other mobile phone service providers to ensure the competitiveness of their service. SK Telecom will resume new competition efforts by the year 2006, when the converged market of telecommunications and broadcasting starts in a full-fledged manner. To this end, we will map out a plan to maintain our market share within the range of legal acceptance. SK Telecom will stay focused on existing subscribers-based qualitative marketing policies, rather than new subscriber-oriented marketing approaches. This will greatly enhance our customer value, as well as stockholder value".
In addition, president Kim revealed that SK Telecom will strive to stabilize the telecom market, and expects an increase in its profitability due to the reduction in overcompetition between mobile phone service providers. We hope that unnecessary disputes and unprofitable marketing activities in the market will be stamped out by our announcement today. The domestic mobile phone service providers must endeavor to use fair play methods, based on clean marketing approaches.
He also emphasized that SK Telecom will make every effort to advance into the international markets, create new market demands, and facilitate customer convenience. This will build a Win-Win Partnership with telecom operators, thereby contributing to the future development of the domestic telecommunications industry.
President Kim commented "The mobile phone service market has been unstable for the five months since the introduction of the mobile number portability system. We decided to control our market share in order to reduce concerns about unlimited competition, and our possible market dominating position, after initiation of the mobile number portability system. In particular, SK Telecom decided to keep its market share below the percentage recorded at the time SK Telecom merged with Shinsegi Telecom in order to eliminate concerns about its dominance of the market after the merger".
President Kim also said, "We will keep this promise until the end of 2005, in order to provide enough time for other mobile phone service providers to ensure the competitiveness of their service. SK Telecom will resume new competition efforts by the year 2006, when the converged market of telecommunications and broadcasting starts in a full-fledged manner. To this end, we will map out a plan to maintain our market share within the range of legal acceptance. SK Telecom will stay focused on existing subscribers-based qualitative marketing policies, rather than new subscriber-oriented marketing approaches. This will greatly enhance our customer value, as well as stockholder value".
In addition, president Kim revealed that SK Telecom will strive to stabilize the telecom market, and expects an increase in its profitability due to the reduction in overcompetition between mobile phone service providers. We hope that unnecessary disputes and unprofitable marketing activities in the market will be stamped out by our announcement today. The domestic mobile phone service providers must endeavor to use fair play methods, based on clean marketing approaches.
He also emphasized that SK Telecom will make every effort to advance into the international markets, create new market demands, and facilitate customer convenience. This will build a Win-Win Partnership with telecom operators, thereby contributing to the future development of the domestic telecommunications industry.