KT gets green light to end 2G service next month

The Korea Communications Commission granted KT Corp. permission to end its feature phone service beginning on Dec. 8.

The state telecom regulator said KT will have two weeks to inform its existing 159,000 feature phone users by at least two different methods ― including mail ― that they will need to change to smartphones running on third generation (3G) networks or choose other mobile service operators.

This indicates that KT will begin building ground to launch its fourth generation (4G) network technology Long Term Evolution service beginning next month, following its two rivals SK Telecom and LG Uplus.

KT was a latecomer in the LTE market because it needed to empty the radio spectrum for second generation (2G) network services to launch next-generation LTE services. The company plans to inject 1.3 trillion won in 4G network establishment by 2012.

“The KCC’s decision enables the company to offer good quality telecommunications services to the people by efficiently using the radio spectrum and encouraging investment in next-generation communication networks,” said KT officials.

In order to assist its 2G service subscribers to move onto mobiles operating on 3G networks, KT said it plans to provide a support package that includes discounts on payment plans, the deduction of subscription fees and cancellation charges as well as a pool of free mobile devices.

For those who wish to continue their 2G subscriptions, KT will give 73,000 won as to those returning their 2G mobiles and 40,000 won to customers who decide to keep their devices, said KT officials. They also said customers will have up to six months to apply for the fund after the completion of 2G services.

The government’s approval comes after the country’s largest fixed-line operator was rejected twice by the commission to end its service for owners of feature phones, or mobiles running on the company’s 2G networks.

Earlier in July, KT resubmitted its plan to end 2G services by September after the firm’s first proposal was turned down by the commission in late June.

However, it was rejected by the state regulator, stating the number of 2G service subscribers was still too high to give the green light to go forward with the action.

By Cho Ji-hyun (sharon@heraldcorp.com)