Sunday, February 17, 2008

[ News, Economy / Industry, January 21 2008] Small tech firm Onse Telecom to launch mobile communications business

Onse Telecom Corp., a Korean fixed-line communications operator, said Monday (Jan. 21) that it is preparing to enter the local mobile telecommunications market, a move that could provide cheaper services by sparking market competition.

Onse Telecom said that it has set up a mobile business task force that will soon unveil detailed plans of its envisioned business in which it will provide service as a mobile virtual network operator (MVNO).

MVNO refers to a business operator whose mobile service is based on a borrowed network. Currently, the South Korean mobile communications market is dominated by three carriers -- SK Telecom Co., KTF Co. and LG Telecom Ltd. Onse is the first company to officially express an intention to enter the MVNO market.

The government recently crafted a bill that would allow smaller companies to enter the mobile service market as an MVNO to prompt market competition and a decline in communications costs for customers. The bill is expected to be submitted to parliament in February.

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