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KT president Nam Joong-soo
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A merger sought by KT, the country's top fixed-line communications service provider, and KTF, the country's second-ranking mobile phone service provider, is emerging as the biggest matter of interest in the telecommunications industry this year.
The two firms began discussing the possible merger when SK Telecom, the top mobile operator, purchased second-ranking fixed-line carrier Hanarotelecom.
Following similar remarks he made last year, KT president Nam Joong-soo recently raised the issue of speeding up the expected merger with KTF again, as his firm readies for a looming battle with rival SK Telecom.
Nam apparently believes that the merger of KT and KTF, whose combined assets would be valued at more than W25 trillion (US$1=W957), will help rally KT's stock price, which has been suffering in the wake of the U.S. subprime mortgage crisis.
In a telephone interview with the Chosun Ilbo on Sunday, Nam, who holds the key to the merger, said, "It's true that the idea of a merger has become more concrete than last year when we began talking about it. A task force is now carefully studying the timing and method of a merger."
If it turns into reality, a KT-KTF merger will likely cause enormous repercussions throughout the telecom industry. The merged company would provide landline and mobile services, as well as proactively push for projects such as WiBro wireless Internet and IPTV services which have so far been sluggish.
(englishnews@chosun.com )
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