Nowadays mega-mergers among telecommunication operators are occurring throughout the world. Considering the nature of Telecommunications business dominated by economies of scale and scope, M&A among players was inevitable and only government control has withheld those appetites.
However, relaxation of government control and customer demand for total telecommunication solution stirred consecutive mega-M&A in telecommunications field. Behind those change of business environment, technological development played key role. For example, carrying various contents such as data, voice, image through a set of facilities, which have originally been restricted for specified purpose of uses, is feasible. On the other hand, capital requirement for building up new facilities is decreasing consistently and this invited several new players, resulting in growing competition. Naturally, this squeezed out profit margin of incumbent operators and forced them to look for new market and maximum utilization of existing resources
The nature of telecommunications industry and changing business environment jointly motivated M&A. In spite of growing demand for M&A in telecommunications field, many cases failed to produce expected synergy effect.
This thesis is about value-creating opportunities and success factors in pursuit of M&A strategy in telecommunications field, and focused on strategic direction for Korea Telecom, which recently acquired Hansol M.com. This thesis made a search for the value creating elements in economies of scale and scope, organizational restructuring, combination of complementary resources and presented strategic directions for Korea Telecom after acquiring Hansol M.com.