[cellular news] South Korea could gain a fourth mobile network operator, if an application by the Korea Federation of Small and Medium Businesses (Kbiz) is accepted by the regulator.
The consortium operating the WiBro based mobile network will be formed by Kbiz and 900 of its SME members. An investment by a technology partner, probably Samsung is also expected.
"We decided to enter the mobile phone industry because we figured this could be a new growth engine for small and midsized IT companies," a Kbiz official told the JoongAng Daily. "The initial funding for investment will be less than 100 billion won ($94.3 million)."
Kbiz said it will succeed in the mobile phone industry by offering subscription plans 20 to 30 percent cheaper than existing plans.
Although previous attempts to set up a fourth network were rejected, the government is putting pressure on the incumbent networks to lower their prices to help control inflation in the country. The offer of a new entrant on a promise of lowering prices may sway the regulator's opinion about granting the license.
Plans for Fourth Mobile Network in South Korea