SK Telecom eyes acquisition of Tbroad
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Rebecca Hawkes
| 19 February 2019

South Korean telco SK Telecom reportedly plans to acquire the cable TV operator Tbroad, as the latest consolidation in the country’s pay-TV market.

The news follows last week’s decision by Korean teleco LG U+ to acquire South Korea’s largest cable TV operator CJ Hellovision.

Now, SK Telecom’s internet service subsidiary SK Broadband is eyeing a merger with Taekwang Group-owned Tbroad, according to the Korea Herald. If the deal goes ahead, it will see SK Telecom acquire around 7.6 million pay-TV subscribers, closing the gap on competitors KT and LG U+.

KT has about 9.8 million subscribers, according to 2018 data from the Ministry of Science and ICT. Local rumours are considering KT’s acquisition of local cable TV operator D’Live.

The government has relaxed its previous tough stance against the country’s cable TV providers entering partnerships with telecos to compete against global streaming service giants such as Netflix.

With South Korea gearing up for nationwide fifth-generation network service following the launch of 5G-based smartphones this March, the telecom giants’ acquisitions of the country’s major cable TV operators are expected to further roil the competition.

Among ideas being floated is KT’s acquisition of local cable TV operator D’Live. Some have previously speculated that SK Telecom could also join the fray, after its attempt to acquire CJ Hellovision in 2016 was thwarted by the government.

At the time, the Fair Trade Commission disapproved of SK Broadband’s plan to acquire CJ Hellovision, saying the takeover would undermine fair competition. The agency had warned at the time that the acquisition could result in a monopoly in the pay TV market and telecom industry.

The government, however, has recently softened its tone over the country’s cable TV providers seeking partnerships with telecoms to compete against global streaming service giants such as Netflix.

In 2016 the government had rejected a merger between SK Telecom and CJ Hellovision.

Acquisitions of major cable TV operators are expected to help augment South Korea's 5G services. These are currently being prepared for nationwide roll-out, once 5G smartphones are launched in March.