Subscribe
E-Paper
Cable TV operator CJ Hello's next moves are drawing keen attention after a new head of the Korea Cable Television Association (KCTA) expressed willingness to enter the mobile network business to find a breakthrough in the stagnation of the cable TV industry.
 |
| CJ Hello CEO Byun Dong-sik |
This means participation of CJ Hello, which maintains the leading position in the industry, in the bid is essential to fulfill the hope of the KCTA.
CJ Hello is the cable channel operating arm of CJ Group, meaning the group would help mobilize financial resources for the bid, if necessary.
Kim Sung-jin who heads the KCTA told reporters on April 12, "The association will actively push for entering the mobile network business as there have been limits for cable TV companies to grow further in the era of the Fourth Industrial Revolution."
He said once the number of mobile carriers increases, it will help cut the burden of household communication expenses, stressing it is in accordance with the government's ongoing efforts.
Kim did not elaborate on which company the association is talking to about the bid, citing such a revelation could affect stock prices. But it is generally believed CJ Hello would be the only possible choice as other cable TV operators have been mostly cash-strapped.
The government has made efforts to find a fourth mobile carrier since 2010, but the selection has foundered every time due to candidates' inadequate plans to mobilize financial resources.
When asked whether the company has a plan to become the nation's fourth mobile carrier, also on April 12, CJ Hello CEO Byun Dong-sik opened the possibility, saying for the medium and long term, it is necessary to establish mobile communications equipment and resolve the monopoly of existing mobile carriers.
"Our will alone does not guarantee our entry (into the mobile network business)," he said, apparently calling for the government support.
Cable TV operators have suffered stagnation in growth especially after telecommunication companies began the internet protocol television (IPTV) business. Mobile carriers have attracted more and more customers by launching services companioning mobile communication and IPTV.
Regarding the moves of cable TV operators, Science and ICT Minister Yoo Young-min said the fourth and fifth mobile carriers would be necessary to promote competition among telecom firms and return benefits to customers. But he added a competent company should be the next mobile carrier.
"The important question is whether a company is ready to threaten existing telecom firms," the minister said.
An official from a telecom company raised skepticism on the moves of the cable TV industry, saying, "It is questionable whether a cable TV company has sufficient financial resources to invest in equipment and maintain it."
