Korea set to implement 2GHz 3G services
The Ministry of Information and Communication (MIC) said yesterday it will push to implement the controversial 2GHz third-generation (3G) services in 2003, in an attempt to shake off lingering doubts and skepticism about the technology's commercial viability.
At an information and technology standing committee at the National Assembly, Information and Communication Minister Yang Seung-taik reiterated the ministry's resolve to help mobile carriers offer 2GHz 3G services next year.
Lawmakers grilled the minister over the controversial 3G policy, particularly concerning the confusing definition of 3G services and the fact that the government snatched up over 3 trillion won from mobile carriers in the name of 3G licensing and spectrum fees.
Minister Yang said it will form a 3G development committee in March to speed up development related technologies, handsets and systems ahead of the scheduled implementation.
The minister also explained to lawmakers that Korea is streamlining related policies in preparation for 3G services.
He told lawmakers that the MIC indeed made an incorrect judgment about the evolution of 3G-related technologies. When the ministry first started the 3G licensing process, it stressed 3G, or IMT-2000, would be substantially different from what carriers then offered through 2G networks.
But mobile technology evolution took an unexpected turn in a way that made the MIC's industry projection irrelevant. The ministry said mobile carriers would be able to provide 3G services in 2002, which proved half right and half wrong.
Korea's three mobile carriers have been offering 3G services, otherwise known as cdma2000 1x, based on Qualcomm's CDMA (code division multiple access) wireless technology since October, 2000.
About 4.2 million subscribers with compatible handsets are now able to download data at up to 144Kbps via cdma2000 1x networks.
Major carriers are also rushing to upgrade their systems to offer cdma2000 1x EV-DO (evolution data only) that can deliver data at up to 2.4Mbps. EV-DO, optimized to offer videophones and wireless multimedia services, is set to debut just ahead of the 2002 Korea-Japan World Cup finals, due to start in late May.
The trouble and confusion began when the government sold off three 2GHz spectrums on two occasions to three telecom operators, as if 2GHz was the only possible spectrum for commercial 3G services.
Back in December, 2000, the MIC awarded two W-CDMA 3G licenses to state-run telecom giant KT Corp. and top mobile carrier SK Telecom. The competition was so tough that the government had been entangled in rumors about lobbying.
LG Telecom and Hanaro Telecom also joined the bidding for W-CDMA licenses on the assumption that W-CDMA, favored by European carriers, would dominate about 80 percent of the global 3G market, with Qualcomm's CDMA taking the remaining share.
But LGT and Hanaro lost the first round of bidding as the government set aside just two W-CDMA licenses. Interestingly, the ministry reversed its earlier pledge not to force carriers to adopt a certain standard. The MIC, however, changed the rule and specified in the clause that at least one licensee should adopt Qualcomm's cdma2000 technology.
As a result, LGT placed a bid and successfully obtained the cdma2000 3G license in August, 2001. MIC's licensing process, understandably, came under fire as major carriers upgraded their network systems in the intervening period to meet the international requirement to offer fledgling 3G services - using their CDMA network without utilizing 2GHz spectrums.
Other global mobile carriers are now reluctant to implement 2GHz 3G services amid mounting uncertainty about their commercial potential, even though many of them paid enormous amounts in licensing fees to secure the much-coveted spectrums.
Given that Korea's mobile carriers are already offering 3G services based on CDMA technology and even European carriers are dragging their feet to implement W-CDMA services, analysts and industry experts alike argue that KT and SKT need not invest in offering W-CDMA 3G services. For all the squabbles and speculation, the MIC said KT and SKT will provide W-CDMA 3G services by the end of 2003.
KT ICOM, a KT unit in charge of 2GHz 3G services, plans to offer a testing-level service late this year. A full-fledged version is scheduled to start in the first quarter of 2003. It set aside 739 billion won to invest in 2GHz 3G services.
SK IMT, a unit of SKT that will spearhead its W-CDMA 3G services, plans to introduce a testing-level and commercial version service in the second and third quarters of 2003, respectively. For the 2GHz services, SK IMT earmarked 115.5 billion won for 2002 and 659.1 billion won for 2003.
The trouble-ridden 3G services are widely expected to spur the growth of wireless Internet, videophone and large-scale data transmission over the mobile network, opening a new chapter for carriers, handset makers and content providers.
Critics also claim that Korea's current wireless Internet rates for mobile subscribers are too expensive and its commercial potential is also questionable, though the proportion of wireless Internet users has been on the rise in recent months.
Korea adopted packet-based data rates in April last year, charging 6.5 won per 512bytes. Ministry officials said the rates are about 70 percent of 2G circuit rates and 40 percent of 2G i-Mode services in Japan.
As for multimedia data, carriers charge 2.5 won per one packet, about 30 percent of what Japan charges for its 3G services.
But the ministry admitted that the current rate system could put too much financial pressure on users if and when the full-fledged 2GHz 3G services are in place. It said it would encourage mobile carriers to lower rates further and offer various subscription options.
The ministry is set to come up with detailed plans in March to distribute codes for 2GHz 3G services to licensees.
(insight@koreaherald.co.kr)
By Yang Sung-jin Staff reporter
2002.03.01
koreaherald.co.kr
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What will compel Korean subscribers to "step down" to wCDMA services?
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