The Korea Communications Commission (KCC) has turned down applications from two companies for a mobile network concession, the Korea Times reports. Echoing developments just over a year ago, the regulator has reportedly put paid to applications from Korea Mobile Internet (KMI) and Internet Space Time (IST) for the licence; as previously reported by CommsUpdate, both companies were similarly rejected in December 2011.
Following the latest applications, it has been revealed that, having needed to score more than 70 out of 100 to receive regulatory approval for a licence, KMI and IST only managed 64.21 and 60.08, respectively. In particular it is understood that the KCC cited a number of factors, including a lack of knowledge regarding technology, unclear business plans and funding. Notably, with financial stability one of the watchdog’s key criteria, it has been revealed that both would-be operators scored below 70 in this area, with IST some way off with a score of just 53.14. Commenting on the importance of financing, KCC vice-chairman Kim Choong-shik was cited as saying: ‘They need to invest in the trillions of won … (Despite a lack of funds) small- and mid-sized firms continue to file for approval.’ Further, the regulator is also believed to have claimed that IST’s proposed subscriber target of eight million in five years was ‘implausible’.