LG TELECOM UNDER PRESSURE OVER CUT OF CALLER ID PRICE.

AsiaPulse News, September, 2003

SEOUL, Sept 16 Asia Pulse - LG Telecom, the smallest of South Korea's three wireless carriers, has been under growing pressure after its competitors decided to cut caller identification (ID) service fees by half.

Starting October 1, SK Telecom and KTF will lower the charge for caller ID service, which allows users to know who is calling, by 1,000 won (US$0.85) to 1,000 won a month.

The decision by the two market leaders have forced LG Telecom to follow the move, but it is not so easy a task for the runner-up operator.

If LG Telecom slashes its caller ID rates by 1,000 won, the company would lose 30 billion to 40 billion won in annual revenue, analysts said.

If the company sticks to current service rates, it would find itself helplessly...