Country's top broadband provider to fully absorb its KTF mobile unit to create triple-play bliss.
South Korea's KT Corp will merge fully with KTF, the country's second-ranked mobile operator in which it holds a 54 per cent share.The move means KT will be able to offer broadband, mobile and IP TV services on one bill.
Japan's DoCoMo, which holds 11 per cent of KTF, will transfer 60 per cent of its stake into KT as part of the restructuring.
KT's decision to merge with KTF had been long-predicted as the company looks to consolidate its position in the saturated and increasingly cutthroat Korean telecoms market.
Hana Daetoo Securities analyst S.T. Hwang told Reuters: "From KT's standpoint, profits from KTF will help the company fill the growing hole left by declining revenues from broadband services. Now the key questions will be whether the merger will bring about successful restructuring, and render the company leaner and more efficient."
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