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SK Telecom Market Share Drops Bellow 50%, Competition Improving?

By February 16, 2017 at 6:51 am
SK Telecom (Photo : Getty Images)

SK telecom is Korea's top mobile carrier but not all is well for the company as recent reports made by the Korea Information Society Development Institute says the the telecommunications company saw its market share fall bellow 50 percent.

SK telecom currently has control of 44.5 percent of Korea's mobile communications market which is enough for the company to nab the top spot. But the figure is a decrease of from 46.2 from the previous year which a cause of concern for the company. KT ang LG U+, the second and third biggest mobile service providers now has a combined 45.4 percent of the users which is higher than SK Telecom's number. This is the first time that SK Telecom is bested by both companies.

Market share for SK Telecom also decreased to 48.2 percent at the end of 2015 which is 48.7 lower than the combined figure of KT and LG U+. This also marks the first time SK Telecom's market share was lower than the combined figure of KT and LG U+.

According to the Korea Information Society and Development Institute, market share of SK Telecom in terms of subscribers was around 40 percent and is still considered to be the competition activated market. It is the middle ground between workable competition and insufficient competition. But additional review of the circumstances is still required to give accurate information. This is due the fact that SK's decrease in market share often comes from regulations that include a MVNO promotion policy.

Moreoever, the Korea Information Society and Development Institute emphasized that SK Telecom's decrease in market share is something that the telecom company should look into. According to the institute, the fact that SK Telecom's market share is decreasing means that the competition is improving. But with the regulations like MNVO, it is still unclear if the competition is the main cause of SK Telecom's decline.

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