All three Korean wireless carriers whose latest battleground is pay TV have entered the race for cable TV operator Hyundai HCN Co.

According to sources on Wednesday, the country’s top three telcos – KT Corp., SK Telecom Co. and LG Uplus Corp. – have submitted their preliminary bids for Hyundai HCN, the cable TV operating unit under Hyundai Department Store.

Industry watchers said a winner of Hyundai HCN with 1.34 million subscribers and 3.95 percent market share could reshape the country’s pay-TV market that is currently led by KT and its satellite TV operator KT Skylife with a 31.52 percent share. LG Uplus is the runner-up with a 24.91 percent share after merging with the country’s biggest cable TV operator CJ Hello last year, while SK Broadband that consolidated with T-broad is closely trailing behind with a 24.17 percent share.

Hyundai HCN that holds a strong customer base in central Seoul and boasts high average revenue per user (ARPU) raked in 70 billion won ($56.7 million) in operating profit last year.

The industry leader KT joined the bid through KT Skylife, according to sources. It is KT’s second attempt to achieve economies of scale through acquisition after its plan to take over bigger cable operator D’Live commanding a 5.98 percent market share fell through due to the antitrust regulations. But the country’s Fair Trade Commission (FTC) eased the rules last year to okay mergers of LG Uplus-CJ Hello and SK Broadband-T-broad to help local players build strong defense against foreign-based streaming giants such as Netflix and YouTube.

The three telcos will determine whether to make a final bid after conducting due diligence.

Market observers believe active mergers and acquisitions will likely continue as the eased antitrust rules open the door for more media M&A deals when other pay-TV operators such as D’Live and CMB remain as potential candidates.

By Lee Yong-ik and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]