Phone Industry Unhappy Over Hanaro Takeover Approval

Korea¡¯s anti-trust regulator on Friday conditionally approved the projected coup d'etat of Hanaro Telecom by Korea¡¯s prima radio operator.

The Carnival Trade Committee made the opinion in a general meeting with one attached status -- that SK Telecom redistribute the 800 megahertz frequence it currently monopolizes. The FTC said that the amalgamation of SK Telecom¡¯s mobile telephone concern and Hanaro¡¯s high-speed Internet concern could take to a monopoly.

But the determination prompted resistance from all political parties -- including SK itself, its challengers KTF and LG Telecom, and the Ministry of Information and Communication, which have the concluding say on the takeover.

The committee ordered SK Telecom to share the 800 megahertz frequence with other radio operators once its monopoly right to it runs out in 2011. The FTC also bes after to inquire the Ministry to administer or rental out the remaining frequence sets to other companies even before 2011, starting from late this year.

KTF and LG Telecom said that the determination is not strong adequate to guard off the marketplace leader¡¯s enlargement of control. "The FTC failed to ran into initial outlooks that it would retreat and redistribute the frequence from SK earlier. Recommending that the remaining frequences be shared is not enough," LG said.

SK Telecom said in a fourth estate release on Lord'S Day that the FTC's recommendation that it share the 800 megahertz frequence is unacceptable. "The frequence we have got long been using have nil to make with the takeover," it said.

The Information and Communication Ministry said it, not the commission, have the authorization to cover with frequence issues including roaming, making it clear that the common usage of frequences should not be considered in reviewing the takeover.

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