News Corp. loses Korea bid
Reports: KDB promises $2 bil investment over five years
The Ministry of Information and Communications awarded the license to Korea Digital Broadcasting, a group led by Korea Telecom, endorsing the Korean Broadcasting Commission's recommendation.
News Corp. had joined with the country's No. 2 telco, Dacom, which began the groundwork to launch a sat platform three years ago when it set up Dacom Satellite Multimedia System.
Digital DTH services are scheduled to start next October with more than 70 channels. That number is expected to increase to 114 channels by 2005.
According to local reports, KDB has promised to invest $2 billion over five years, and it expects a net profit in year five.
Korea Telecom owns 18% of the consortium. Among other shareholders are terrestrial webs KBS (10%), MBC (7%) and SBS (3.2%).
It has been widely speculated in Seoul that, regardless of which group was favored by the Korea Broadcasting Commission, the two rivals would join forces afterwards.
Korea has about 1.3 million cable subscribers, a small penetration rate in a nation of 44 million.
