IST consortium to vie with KMI, seek investment from small businesses


The Korea Communications Commission announced Friday that Internet Space Time, a consortium invested by Hyundai Group, submitted its application to be the country’s fourth telecom, staging a fight against rival Korea Mobile Internet.

“We plan to service true fourth generation wireless communication networks that put users at the center of the services, and create networks which are demanded by the users to open the Web 3.0 era,” said Yang Seung-taek, IST chief who has served as a minister at the Information and Communications Ministry.

The IST said it secured 703.8 billion won ($619.68 million) in paid-in capital from its largest stakeholder SB Mobile, and small and mid-sized firms, as well as Hyundai Group, Samsung Electronics, Curious Inc. and Middle Eastern financial institutions.

IST will compete with KMI, a group which has won financial support from Dongbu Group in its third attempt to become the nation’s fourth telecom.

KMI has twice failed to get the government’s approval because it was unable to collect enough funds and win the government’s trust. However, it finished turning in its application to the KCC earlier in August.

The country’s telecom market has been dominated by three players ― SK Telecom, KT Corp. and LG Uplus ― for the past 10 years.

According to the KCC, the two teams will be evaluated on the validity of the project scheme and the appropriateness of the facility installation scale as well as financial and technological capabilities.

The judging committee will be composed of a maximum of 20 people, including experts from the sectors of law, economics, finance and technology, said a KCC official, adding that one team will be picked by next month.

IST said it would try to attract strategic investors next year to gather necessary resources to establish a nationwide network. It will also release government-issued stocks on two different occasions to go forward with the paid-in capital increase worth up to 750 billion won.

“We will encourage local medium and small-sized firms to actively take part in the making of a fourth telecom,” said an IST official.

It plans to establish networks in six different metropolitan regions by the end of next year and expand the network coverage to 82 different cities in the latter half of 2013, moving further to all areas by 2014, said an IST official.

“Selecting to go with the WiBro-Advanced network technology that could send up to 320 megabit per second, we will provide communication services that cuts the fees for half of the existing three telecoms, but includes services related to voice minutes, data and video,” the official said.

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