By Lee Min-hyung
LG Uplus, the nation’s third-largest mobile carrier, said Thursday that the latest move by SK Telecom to take over a cable TV service operator, CJ HelloVision, is against fair competition in the telecommunication market.
“The latest deal has to be approved by the nation’s top regulation bodies, but it is doubtful whether they will do so, as SK Telecom is abusing its dominant position in the telecommunication business by moving into the broadcast sector,” Ahn Sung-jun, senior vice president at LG Uplus’ converged home business division, said during a press conference at the company’s headquarters in Yongsan, central Seoul.
Ahn said the regulatory authorities, including the Korea Communications Commission and the Fair Trade Commission, are unlikely to approve the deal.
“SK Telecom faces a tough road ahead until the deal is finalized,” he said. “If approved, this is an obvious violation of fair competition.”
On Monday, telecommunication market leader SK Telecom signed a deal to take over the CJ Group affiliate. The takeover deal has sparked a strong backlash from SK Telecom’s two rivals ― KT and LG Uplus. They previously released a statement that said SK Telecom expanding its influence into the paid TV service market was an attempt to create a monopoly.
During the press conference, the company announced the launch of its new Internet Protocol TV (IPTV) service.
The Curation TV service comes at a critical time for LG Uplus, which needs to find a next growth area amid sluggish demand in the saturated telecommunication business.
The new IPTV service offers 500 virtual channels which provide more than 10,000 videos-on-demand (VOD), ranging from entertainment and dramas to movies and documentaries, LG Uplus said.
“This is the first time viewers can watch VOD with our easy-to-use virtual channel service,” Ahn said. He said the company has applied for eight patents for key technologies used in the Curation TV service.
IPTV services are gaining traction as it uses wireless Internet servers, enabling two-way communication between operators and viewers. On the other hand, cable TV services are losing luster due IPTV services and the rise of mobile devices as a means to watch TV.
As of June, the number of IPTV subscribers was more than 11 million, compared to 14.5 million cable TV subscribers, according to the Korea Cable Television Association.
For this reason, mobile carriers are betting big on grabbing a leading position in the IPTV market to diversify their business portfolios for converged media platform from mobile sectors to broadcasting area.
He said the company is considering interconnecting the IPTV service into its home Internet of Things (IoT) platform.
“We are making investments in applying our voice recognition technology into the IPTV service, so that users can remotely-control our service with their voice.”
Regarding the latest rumor that LG Uplus is planning to take over a cable TV operator, Cable & More (C&M), the company executive did not unveil details.