Second Day of Number Transfer Policy Brings Increased Competition

With the January 1 launch of the new number transfer policy, 3,067 SK Telecom users transferred their memberships to LG Telecom or KTF keeping their 011 017 numbers. This number is nearly eight times the daily new subscription average of 400.

SK Telecom faced a massive crisis as 5,000 more terminated their subscriptions yesterday. On the other hand, in order to grab this chance to increase their market share rate, LG Telecom and KTF stationed all of their staff at the front lines and ordered a total war.

The reality of the number transfer equaled 6,112 SK Telecom members applying for a company change on January 1. However, due to an error in SK Telecom’s cable termination function produced with the start, only 3,067 actually transferred to another company.

With the error came KTF and LG Telecom’s criticism that SK Telecom is disturbing the number transfer. SK Telecom explained that, “They were not validated because there was something wrong with the fee calculating function and number transfer center was not ready.”

The Ministry of Information and Communication and SK Telecom ran an emergency group to clear out the error and normalized the cable system at about 3p.m., 150 minutes after it started.

SK Telecom called each of the terminated subscribers to say that, “If you come back in a fortnight, you will be able to continue with your original state.” Furthermore, they inserted “SK Telecom Network” into the original member’s call connection sound.

KTF and LG Telecom said, “They are illegally asking for re-subscription and violated consumer’s right by inserting an advert without permission,” and are discussing a lawsuit against the communication committee.

The Ministry of Information and Communication approved yesterday of SK Telecom’s agreed discount systems that are 2.5 to 21.6 percent more expensive than other companies. Therefore, the cost difference between companies has decreased and unlimited service competition is in order.

The Ministry of Information and Communication’s Kim Chi Dong announced that, “Marketing which harms the number transfer will be strongly punished by the government.” However, with the industry being interested in the market share rate and stock management, it is worth wondering whether the government’s eye will work.

Seong-Yub Ra cpu@donga.com