South Korea's information ministry will allow cable network operator Powercomm to add new customers from Saturday after the company moved to address issues raised over its operations, a ministry official said on Friday.
The Ministry of Information and Communication had barred Powercomm, which launched its broadband Internet services last month, from adding new customers since late September. It said the company incorrectly identified itself to other service providers when exchanging Internet traffic.
The ministry had also asked Powercomm, 45.4 percent owned by long-distance call carrier Dacom Corp., to build backup routes in its nationwide networks.
"The identification problem has been addressed and Powercomm can start taking new subscribers where it completed setting up backup routes," an official at the ministry's telecommunication committee said.
Powercomm had built backup routes to cover more than half of its networks and was working on the rest, the official said.
Powercomm had been found to use Dacom's identification number when exchanging Internet traffic, which meant rivals, including dominant market player KT Corp and number two hanarotelecom inc., could not distinguish between Dacom and Powercomm.
The regulatory ban was an obstacle to Powercomm, which offers fibre-optic broadband services with cheaper rates than competitors, meeting its goal of capturing 7.5 percent of the local high-speed broadband market by 2006.
Three-fourths of South Korea's 15.8 million households have high-speed Internet connections.