SK Telecom clips service charges

SEOUL - South Korea's top mobile service carrier, SK Telecom Co., said on Tuesday it would cut charges for its wireless Internet services by 30 per cent after the government sought to curb rising mobile service fees.

Wary of inflationary pressure, the South Korean government and the ruling Uri Party agreed in September to seek a 30 per cent cut in wireless data service fees by mobile operators.

The move raised concerns over operators' earnings as voice revenue growth is stalling in South Korea, where four out of five already have a mobile phone.

SK said in a statement it would cut service charges for text messages and multimedia services provided by its mobile Internet by 30 per cent, starting Jan. 1. It would also roll out service packages designed to cut bills from wireless Internet use.

SK did not disclose the estimated impact of the cuts on its profits, but recent data showed wireless Internet services generated 28 per cent of its mobile service revenue in the third quarter. SK controlled 50.4 per cent of the home market as of November.

SK's smaller rivals, KTF Co. Ltd. and LG Telecom Co. Ltd., are expected to follow suit, although the companies have not decided yet on the scale of the fee cut.

SK Telecom shares were down 0.88 per cent to 224,500 won by 0234 GMT in a flat market.