South Korea has fined the country’s three mobile carriers SK Telecom, LG Telecom and KT Freetel a combined amount of Won 1.78 billion ($1.8 million) for price collusion. The three operators reportedly engaged in unfair business practices in 2004 by agreeing to discontinue flat rate services, as competition intensified with the introduction of number portability. However, the companies agreed to put an end to such services in June 2004 because the flat rate system increased their losses. The penalties are expected to put further pressure on wireless telecom service providers, who are grappling with stalled growth in a competitive market.
