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South Korea’s largest mobile communications operator SK Telecom has said that the 2008 expense budget will be increased by13% to upgrade networks for their 3 G subscribers  are growing faster than expected.

SK Telecom now expects 2008 capital expenditures amounted to 1.97 trillion won (about 1.87 billion U.S. dollars), earlier announced that the capital expenditure amounted to 1.75 trillion won.

SK Telecom said the company 3 G the number of users growing faster than expected, it is necessary to upgrade equipment to expand the network capacity. By the end of July, SK Telecom has 665万3 G users, at the end of January for 296万3 G users. South Korea’s mobile phone penetration rate has reached 90 percent, the first half of the Korean mobile communications market unprecedented fierce competition, operators are trying to get more contracts users, thereby increasing a great deal of marketing costs. SK Telecom controls slightly more than half of South Korea’s mobile services market, the company announced in July reported second-quarter net profit fell 26 percent to 298 billion won, the main reason is the increased cost of sales and operating income decline in wireless data .

Analysts said three mobile operators in South Korea are likely to try to avoid using the meanings of marketing to acquire and retain customers and they will focus on improving the quality of services, and increase the investment of production which will help improve their income.