Thursday, May 29, 2014

Seeking Alpha: Despite Aggressive Competition, SK Telecom Has Remained On Top

As I have written recently in reference to companies like America Movil (AMX), Orange (ORAN), and NTT DoCoMo (DCM), navigating competition in the mobile services market has only gotten more challenging in most markets. SK Telecom (SKM) has the mixed blessing of operating in one of the most difficult markets of all, with KT Corp. (KT) and LG Uplus straddling, if not often crossing, the line between fierce and irrational competition in South Korea.

A recent move from regulators to punish all three carriers for violating rules on subsidies impacted first-quarter results, but there's at least a chance that a new rule will eliminate these moves in the future and make competition a little more reasonable. The more rational SK Telecom's rivals get, the better for SK Telecom, and these shares do look a little undervalued today. Combined with a good yield, these shares do hold some appeal on the prospect of better earnings potential in South Korea.

Read more here:
Despite Aggressive Competition, SK Telecom Has Remained On Top

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