Telecoms regulator Korea Commmunications Commission (KCC) has decided against awarding the country’s fourth mobile licence to Korea Mobile Internet (KMI) despite the applicant’s promise of cut-price rates to compete with the incumbent operators. The South Korean regulator was unconvinced by KMI’s strategy to attract in excess of 10 million customers with cheap charges, as well as its approach to funding. The company had proposed offering prices up to 30 percent below those currently available. But the regulator said the country’s three existing operators were already reducing their charges and MVNOs were expected to debut soon, adding to downward pressure on pricing. The regulator was also unconvinced by the applicant’s backers. KMI proposed a business model whereby its shareholders would lease capacity from it on which to launch their own mobile services either directly to consumers or via MVNOs but was backed by smaller players compared to the major entities which dominate the country’s mobile market. As well as being rejected in its bid for a mobile licence, the regulator turned down KMI’s request for radio frequencies. Its service was to be based on WiBro technology.

This is not KMI’s first rejection. It was turned down by KCC back in November and then reapplied after changing some of its shareholders but the regulator remained unconvinced. KMI  is backed by small players compared to the country’s mobile operators. SK Telecom has more than 25 million mobile subscribers which is about half of the country’s total 50 million figures, according to figures from Wireless Intelligence for end-Q4 2010.  Rival KT has around 16 million subscribers and smaller LG UPlus about nine million.