*LGT Joins Race to Cut Mobile Rates*

"LG Telecom, the third largest mobile carrier, will cut mobile rates for calls among its customers from Nov. 1, following suit of SK Telecom and adding pressure on KTF in the three-way rating-cutting competition.Under the new scheme, LG Telecom will offer free calls between its subscribers for up to 20 hours a month, a similar policy to SK Telecom giving a 50-percent discount for so-called ``inner-network'' calls.If an LG Telecom subscriber adopts the plan with a monthly basic rate of 15,500 won ($16.88), for example, the user would be given 20 hours of free calls with other LG Telecom subscribers.

Another plan with a base rate of 41,000 won ($44.65) provides subscribers with a total of 300 minutes of free calls to other people including non-LG Telecom subscribers on top of the 20-hour free inner-network calls.

"Our plan for the 20-hour free calls is worth some 129,600 won, as the normal rate is 18 won per 10 seconds,'' a company spokesman said. ``It means that all inner-network calls become virtually free, as people make calls for an average of 186 minutes a month.SK Telecom, the frontrunner in the industry, took the initiative first, lowering rates with aggressive discount plans for its loyal subscribers including a 50-percent discount for inner-network calls.

However, the two smaller firms _ KTF and LG Telecom _ have asked the government to disallow SK Telecom's move, claiming that it would only strengthen the firm's monopolistic position in the market.Government officials initially supported SK Telecom's discount plans, saying that they would help promote a healthy price competition among rival companies for the benefit of consumers. But it became more cautious, pressured by unfavorable opinions.

Competition surrounding mobile phone rates will likely intensify further with the new discount policies of LG Telecom and SK Telecom"

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