Korea Telecom (KT), South Korea’s fixed-line incumbent operator, has hinted that it is planning to merge with its majority-owned mobile unit, KTF, the country’s second-largest mobile operator, in order to offer bundled fixed and mobile services. According to a KT spokesperson, KT CEO Nam Joong-soo revealed the plan at a recent company event. “We are still considering it and no decision has been made on details such as timing,” the spokesperson added. KT currently owns 53 percent of KTF.

According to Reuters, investors and analysts have long been expecting the two entities to merge. The move would also allow the firm to compete better with mobile market-leader SK Telecom, which recently acquired South Korea’s second-largest broadband operator, Hanaro Telecom. However, the report adds that such a merger could face regulatory difficulties from anti-trust regulators. KT controls 90 percent of South Korea’s fixed-line market and 44 percent of broadband. According to Wireless Intelligence data, KTF had 13.9 million mobile connections by end of first-quarter 2008, behind SK Telecom with 22.4 million. Third-placed player, LG Telecom, had 8 million.