SK Telecom forges alliance with China Unicom
(AFP)
Updated: 2006-06-21 13:53
South Korea's top mobile carrier SK Telecom has secured a foothold in China's
fast-growing wireless telephone market by forging a strategic alliance with
China Unicom.
SK Telecom said it would buy convertible bonds worth about one billion
dollars from China Unicom, the country's second largest mobile phone operator
with 130 million subscribers, on July 5.
The three-year bonds will be converted into a 6.67 percent stake, it
said.
SK Telecom, which controls more than half of South Korea's wireless market,
said the deal would allow it to gain access to China, the world's largest mobile
phone market.
In February, SK Telecom was allowed to launch a six million dollar Internet
service joint venture with China Unicom.
SK Telecom has expanded its business abroad due to competition which has
heated up in South Korea since January 1, when rules were changed to allow
mobile phone users to switch carriers without changing their mobile numbers.
"The strategic alliance will help SK Telecom secure a foothold for direct
inroads into China, which is an attractive telecom market with growth in both
quantity and quality," SK Telecom CEO Kim Shin-Bae said in a statement.
He said the deal was part of SK Telecom's plan to strenghten its competitive
edge in the global marketplace.
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