Telecoms unscathed by talk of 4th mobile carrier

SEOUL, July 19 (Yonhap) -- Shares of South Korea's three mobile carriers were not affected much on Tuesday by the news that a consortium of small and medium enterprises is seeking to enter the already crowded market.
Industry leader SK Telecom Co. shed a mere 0.35 percent to 143,500 won (US$135.4), with LG Uplus Corp. edging down 0.18 percent to 5,460 won and No. 2 player KT Corp. closing flat at 38,650 won. The broader Korea Composite Stock Price Index (KOSPI) closed at 2,130.21, down 0.01 percent from Monday's close.
A day earlier, the Korea Federation of Small and Medium Business (Kbiz) said it plans to invest less than 100 billion won ($94 million) to set up a mobile carrier via a consortium made up of small and mid-size enterprises from the information technology sector.
Analysts said the tepid reaction from investors was expected, given the many hurdles needed to establish a new mobile carrier.
"The plan is unlikely to have a substantial impact on the market in the short term," said Choi Yun-mee, an analyst at Mirae Asset Securities Co. "The consortium's plan to focus on fourth-generation wireless broadband (WiBro) services may also pose potential risks."
Setting up a WiBro network is forecast to cost 1-2 trillion won, and the consortium may face difficulties in securing WiBro-based mobile phones, she said.
Kbiz's plan, which comes as part of its efforts to boost local venture businesses, has to receive the green light from the Korea Communications Commission.
Industry sources said Samsung Electronics Co., which controls the basic technology for WiBro, and four Taiwanese companies are likely to invest in the consortium.
mil@yna.co.kr