Now, KT could find answer to its corporate crisis with packaged product sales. Last month, MIC announced that it would permit fee reduction and package sales with related telecommunication services.

29th last month, MIC (Ministry of Information & Communication) with KISDI (Korea information Society and Development Institute) held an open hearing on 'telecom package sales policy redirect project' and MIC stated it will allow Telecoms to sell packaged products. However before doing so, it will first establish an internal reviewing board to minimize any possible monopoly that could arise in the market.

Bundling of Wired/wireless communication, internet, broadcasting in terms of technology and commercialization has direct relation to consumers and related market, not to mention the influence it will make on domestic Korean IT market and its future.

Stronghold in Wired Telephone KT, welcomes the packaged sales.
KT is expects to gain most advantage by the MIC's decision and welcomes its approval to offering packaged deals. Recent woes with new flat fee policy (reduced traffic and customer drops) in wired telephone service and its attempt to expand the very sector coincides with the news too.

With its current market dominating share of 80 to 90 percent inner/outer city regular phone service and combining that with KFT (sister company) wireless communication service (lighting fast broadband internet service), will probably reshape the whole communication market around the KT.

This in turn brings concerns to Hanaro Telecom, Dacom and other late started telephone companies, not to mention no.1 mobile telecom SKT. An affiliate from a newly established wired telephone service firm said, "There's already a huge gap between us and the current no. 2. And if KT and KTF combine their services together, most likely they will control the whole market." And added "without the existing regular phone service, SKT do no have any answer for that. The word on the street is that with the package sales in sight, SKT is salivating over Hanaro Telecom. As the rumor indicates, it is a big deal on the market."

Control over packaged sales needed to stop possible monopoly
The competitors other than KT are all raising their voice over need for clear policy that can control 'KT's monopoly'. Head of MIC's communication market regulator said, "including the lower consumer prices, the packaged sales will bring positive result to the stagnant telecom industry. It will further open up whole sale market which is an added bonus for the consumers." Also adding, "To cope with a possibility of monopoly in the market and other side effects, we will review the communication regulations very carefully."

KT on the issue said, "The focus of telecom market has shifted from local calls to mobile phone market already and therefore related equipment and monopoly in the market has no merit, we should not get blamed for controlling local phone market."

However, when the packaged sales do go into effect, other smaller firms should face much tougher times as they do not have the same local phone infrastructures KT already has. Before allowing the packaged sales, it ought to have a policy that can regulate fair competition in the market.

Only way out is with packaged sales
Eventually, looking at the current KT's position in the market, for its future operations, the packaged sales are the best answer. And it is only natural that they are reacting sensitive to the regulations involving the monopoly issue.

Their struggle with its regular wired telephone service (KT's main business) and worsening market competitions, allowing the packaged sales is the only way for them to withstand the current difficulties. Its next generation ventures, WiBro and IPTV can also find their way up and thrive off the packaged sales offers. For that reason, establishing a rejuvenated wired phone service market is the first priority for them.

An affiliate from KT said, "Currently, KT even though its leading the market, not knowing the clear cut regulations, has not come up with any solid service plans yet. But with packaged sales, WiBro and IPTV will be strengthened, will be a plus for the consumers. It should develop not just as a part of expanded service but combined/array of services to further improve the consumer's end by giving more flexibility over choices."