LG Telecom to merge with Dacom, Powercom

South Korean operator LG Telecom said today it will merge the fixed-line unit of LG Dacom and ISP LG Powercom with itself on January 1, 2010, reports Reuters. The boards of all three companies have approved the deal, noted LG Telecom in a regulatory filing. The newly merged entity will offer mobile phone, high-speed Internet, Internet phone as well as IPTV services. It will have combined assets of KRW7.88 trillion, sales of KRW7.72 trillion as well as 13.6 million subscribers.


LG Telecom said that the merger is aimed at dealing with a fast changing wired-wireless business environment and to boost profits by offering bundled products and trimming overlapping expenses. Reuters notes that analysts consider the merger a necessity for LG Telecom, the smallest of South Korea's three mobile operators, as it looks to compete with bigger telecom rivals KT Corp and SK Telecom. LG Telecom's move follows that of KT Corp, South Korea's largest wired and wireless carrier by revenue, which absorbed its wireless unit KT Freetel in June.