The Korea Herald

지나쌤

KT makes all-out effort to grab more LTE share

By Korea Herald

Published : Aug. 2, 2012 - 20:38

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KT is beefing up its efforts to grab a bigger share in the local Long Term Evolution handset market, with the firm offering incentives to all employees who join its marketing drive.

The country’s second-largest mobile carrier said it will hand out incentives, amounting up to 5 million won ($4,418), to all of its 32,000 workers ― not only in sales but in all departments ― who are successful in getting customers to sign on to KT’s LTE smartphone service.

According to the company, workers of departments not related to sales such as human resources and general affairs can earn 150,000 won after selling five LTE handsets. Those serving in departments related to sales and marketing will be given incentives following the sales of at least 15 LTE smartphones.

KT’s move takes place as the firm is currently lagging behind in the local telecom’s LTE race with SK Telecom taking the lead with 4.22 million subscribers, followed by LG Uplus with 2.95 million as of last month. KT secured about 1.4 million LTE subscribers in the same period.

As a latecomer in the set-up of nationwide LTE networks, the company has been losing its subscriber base to the two other telecoms, as shown in data released by the Korea Telecommunications Operators’ Association on Wednesday.

The KTOA said KT recorded a loss of 69,924 users ― 31,957 to SKT and 37,967 to LG Uplus ― just in July, making it inevitable for the company to launch more aggressive marketing efforts.

As a result, KT said it will launch a program called the “Golden Bridge,” which offers commission to employees who sell LTE phones even after retirement if the customer continues to go with the contract.

The nation’s telecoms offer about 6-7 percent of the fee paid by the customer as commission.

In the meantime, the competition in the local LTE market is expected to get fiercer in the second half of this year with the launch of new services such as Voice over LTE, which will offer upgraded voice quality for smartphones.

By Cho Ji-hyun (sharon@heraldcorp.com)