Korea Telecom Joins Forces With Microsoft
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The two companies signed a memorandum of understanding late Friday for joint operations in a spectrum of Internet businesses. In doing so, Korea Telecom will utilize Internet-related technologies, contents and service know-how of the software giant, while Microsoft will take advantage of the Korean carrier's existing Internet infrastructure to carry forward businesses in the Korean market.
"With this alliance, we have gained an opportunity to realize Internet vision of both Korea Telecom and Microsoft," said an official of Korea Telecom.
The core businesses they will launch together include direct Internet access service from Microsoft's Windows Millennium, establishment of joint portal site through sharing of KT's HanMir and MSN of Microsoft, Web hosting for small enterprises, game portal service by utilizing Microsoft's Internet game technology and web TV service by linking set-top box onto TV.
Industry analysts say that if the direct access service become available, local ISPs offering dial-up access service would be hard hit, noting that the companies might have to sharply lower monthly fees.
Also, the two companies will build an integrated portal service that allows users who signed up for Korea Telecom's portal site 'HanMir' to use MSN's services including Hotmail without additional registration.