View all newsletters
Receive our newsletter - data, insights and analysis delivered to you

SK Telecom to acquire SK Networks` leased line for KRW892.9 billion

The company expects to gain control of mobile phone transmission network

By CBR Staff Writer

SK Telecom announced the decision to purchase SK Networks’ leased line business and issue new shares of its subsidiary, SK Broadband.

Under the deal, SK Telecom would pay KRW892.9 billion and assume KRW654.1 billion of assets and KRW627.8 billion of debt.

The acquired business includes the mobile telecommunication transmission network which is expected to secure sufficient network capacity for the company’s mobile phone service.

The acquisition will allow SK Telecom to increase its mobile phone network self-sufficiency rate from 51% to 92%, expanding its optical cable from current 4,947 kilometres to 88,416 kilometres.

The company could also reduce their rental cost of leased lines which currently reaches KRW300 billion annually.

Once the deal is signed, the business transfer agreement will go through a two-month approval process of the Korea Communications Commissions and be completed in September when the company settles the payment.

Dong-Hyun Jang, CFO of SK Telecom, said: Concerns were constantly raised that SK Telecom was too dependent on outside network resources. However with this agreement, SK Telecom will be able to greatly enhance efficiency in network operation and costs.

Content from our partners
How to turn the evidence hackers leave behind against them
Why food manufacturers must pursue greater visibility and agility
How to define an empowered chief data officer

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU