Number of Internet phone subscribers hits 10 mln in S. Korea

SEOUL, July 4 (Yonhap) -- The number of Internet-based phone service subscribers in South Korea has topped 10 million in less than six years since the debut of the service, government data showed Monday, amid the continued downturn in traditional landline service.
Subscribers of voice over Internet protocol (VoIP) service numbered 10.1 million as of June, the Korea Communications Commission (KCC) said in a statement. The figure marks about 20 percent of South Korea's 50 million population.
The service, which was first introduced in 2006, offers long-distance calls at rates about 85 percent cheaper than landline phones and international calls that cost only 5 percent of the price for traditional fixed-line telephone service.
The popularity of VoIP service began to grow rapidly in 2008, following rate cuts introduced by the government.
The VoIP service accounted for 32.2 percent of South Korea's fixed-line phone service in 2010, up from 1.4 percent in 2006, as consumers replaced landline phones with cheaper Internet-based phone service at homes and offices.
The country's 10 VoIP service operators, including market leader KT Corp., posted combined revenues of 837 billion won (US$787 million) in 2010, up about three-fold from two years earlier, the commission said.
The number of Internet-based phone subscribers is forecast to reach 11 million at the end of this year, it added.