KT to Allow Free Internet Phone Calls

As reported in the Korea Herald today, Korea Telecom announced that it will allow free internet phone calls from its mobile handsets. KT said it will introduce a plan which enables both traditional cell phone services and Wi-Fi connections for free internet phone calls. According to a statement, the company sees wireless internet as a growth engine for the future. Telecom companies in Korea have been reluctant to promote internet phone calls for fear that they would cut into revenues. Indeed, KT estimates that the move could initially slash its revenues. It expects a 35 percent reduction in fees for cell phone calls and an 88 percent drop in data transaction fees. However, the new service will be limited to three designated smartphone models.