Asia Express - Mobile Communications
LG to Consolidate Three Telecom Business Units
October 15, 2009
Korean LG Group recently announced that the company plans to combine its three telecom business units, including mobile operator LG Telecom, fixed-line operator LG Dacom, and broadband company LG Powercom, with an aim to integrate the company's mobile phone, fixed-line and Internet services so as to combat with its rivals KT and SK Telecom, the Chosun Ilbo News reported on October 9. Currently, the merger plan is still pending approval by the company's board of directors, who will make the final decision on October 15, before submitting to the government for approval. Should the merger plan go as planned, the convergence is slated for completion on January 1, 2010. The combined number of subscriber base is expected to reach approximately 13 million after the merger, according to the same source.