The Korea Herald

지나쌤

Media watchdog to consult U.S. FCC over SK-CJ deal

By Kim Young-won

Published : April 7, 2016 - 17:02

    • Link copied

Korea Communications Commission chairman Choi Sung-joon said Thursday he will have discussions with top officials from the U.S. communications regulator over a proposed merger of IPTV firm SK Broadband and cable TV company CJ HelloVision this month.

Chairman Choi and officials from the Korean regulator are scheduled to fly to the U.S. on Feb. 17 and meet with the Federal Communications Commission officials including chairman Tom Wheeler.

Choi Sung-joong, the chairman of Korea Communications Commission, speaks at a media event held in Gwacheon, Gyeonggi Province on Thursday.(KCC) Choi Sung-joong, the chairman of Korea Communications Commission, speaks at a media event held in Gwacheon, Gyeonggi Province on Thursday.(KCC)

“It is not appropriate to apply the same standards of a certain nation to Korea, but the KCC will be able to consult on similar cases in the U.S.,” said the KCC chairman at a press meeting on Thursday, mentioning the controversial merger deal between SKB, a subsidiary of mobile network operator SK Telecom and CJHV, the largest cable TV firm that also runs a mobile service business.

Concerned over increasing market dominance of SKT in both telecom and broadcasting industries, its rivals KT and LG Uplus as well as cable TV companies here have objected the telecom-cable TV tie-up.

The proposed merger between SKB and CJHV is awaiting final approval from the Fair Trade Commission, Ministry of Science, ICT and Future Planning, and the KCC.

As soon as the FTC makes its final decision on the issue, the ICT ministry and the KCC will begin 50-day and 35-day reviewing sessions, respectively, and decide whether to allow the merger.

The U.S. FCC has reviewed around 10 proposed merger deals in the telecom and broadcasting sectors since 2010. Among them is the merger deal between the U.S.’s second largest wireless carrier AT&T and satellite television firm DircTV, which it approved with some conditions last year.

The FCC rejected AT&T’s attempt to acquire wireless carrier T-Mobile in 2011.

“The KCC will make a final decision as swiftly as possible after the FTC decides on the matter,” said Kim Young-kwan, director of KCC’s broadcasting policy bureau, adding that “previously no merger in the telecom and broadcasting sector has stirred this level of controversy.”

“The KCC chairman and officials will also discuss a range of issues with the U.S. counterpart, including ultrahigh definition broadcasting,” the director added.

By Kim Young-won (wone0102@heraldcorp.com)