KOREAN MOBILE CARRIER SK TELECOM TO ALLOW INTERNET CALL SERVICE

SK Telecom Co. (KSE:017670),South Korea's top mobile carrier, said Wednesday it will allowits mobile phone subscribers to make Internet calls over itscellular network, a step that local mobile carriers havepreviously delayed for fear of losing profits from voiceminutes.

The measure will allow subscribers to make cheap phone callsusing services from companies like Skype Technologies SA whileconnected to SK's 3G cellular network, SK Telecom said in astatement.

Mobile carriers and the South Korean government currentlylimit the use of mobile Internet phone calls to wirelessfidelity (WiFi) networks. SK Telecom will apply for governmentapproval.

The service

The service, known as mobile voice over Internet protocol,or m-VoIP, was seen as a free-ride to the trillions ininvestment that mobile carriers make to build the cell phoneinfrastructure.

Programs like Skype allow mobile phone users to makeinexpensive calls through the Internet without paying voiceminutes charges to mobile carriers. But SK Telecom said itceased to view the service as a threat to its revenues fromvoice minutes sales.

The service

The service, which is likely to offer the biggest discountsin overseas phone calls, is limited to SK Telecom's subscriberspaying more than 55,000 (US$45.8) won in monthly basic fees. SKTelecom also limits the minutes and data that can be usedthrough Internet phone calls.