(Korean) 3G policy mired in dispute over service schedule
Korea's mobile industry is now embroiled in a dispute over when the so-called third-generation (3G) wireless services will be launched, and whether carriers will be allowed to delay the schedule.
The rout was sparked by Information and Communication Minister Yang Seung-taek's recent comments that the government may change its policy on the implementation schedule of the 3G service.
In a National Assembly hearing, Minister Yang said the government's policy on 3G in 2000 proved off the mark as the current spectrum usage is far different from previously forecast. He said that the government should consider revamping the 3G service policy.
Korea awarded two W-CDMA-based 3G licenses to KT Corp. and SK Telecom in December, 2000, and one cdma2000-based 3G license to LG Telecom in August last year.
European carriers such as Nokia of Finland and NTT DoCoMo of Japan push for the spread of W-CDMA standard while U.S.-based Qualcomm Inc. spearheads cdma2000 technology.
The Korean government hedged its bets by choosing both standards in the hope of securing a share in the W-CDMA camp while staying ahead of competitors in cdma2000 technology.
But the 3G licensing procedure came under fire in recent weeks as the country's three carriers already kicked off commercial 3G services by launching cdma2000 1x that could deliver data at up to 144Kbps. The 1x data transmission speed falls into the 3G category set by the International Telecommunications Union (ITU).
The unexpected development in wireless technology evolution is now creating confusion and dilemma for both the government and carriers. The Korean government initially claimed 3G technology could not evolve from voice-oriented 2G services, thus justifying the hefty licensing fee for the 2GHz spectrum, set at 1.2 trillion won each. But without any license, SK Telecom, KTF and LG Telecom are now offering 3G services after constantly upgrading their 2G networks.
When the carriers first joined the bid for 3G licenses, they said they would introduce a commercial version in June this year. A number of small solutions developers, which joined the consortia formed by the three carriers, are now confronted with uncertainty.
Now, KT Corp., SK Telecom and LG Telecom tend to stick to their cdma2000 1x services while remaining ambiguous about when they would go ahead with the original 3G services.
LG Electronics complained that it has already completed the development of 3G network gears, saying that carriers are intentionally delaying the implementation.
But Korea requires the roaming between 2G and 3G networks, which means handset makers should develop dual mode models before the government-mandated 2GHz-based 3G services kick off formally.
On Friday, major carriers and industry experts held a meeting at the Information and Communication Ministry. SK IMT, a unit in charge of SK Telecom's 2GHz-based 3G service, said it would intend to delay its service implementation, scheduled for the second half of 2003.
But SK IMT said a delay may be inevitable if handset makers do not introduce "small and affordable" dual mode handsets in time.
KT ICOM, a unit of KT Corp. in charge of 2GHz-based 3G service, said it would also introduce a commercial service at the end of this year, as scheduled.
LG Telecom said it originally planned to invest in 2GHz spectrum services, but its network capacity has enough room to get by without using the new spectrum. The company said it would invest in the 2GHz-based 3G service in 2003 at the earliest.
(insight@koreaherald.co.kr)
2002.02.18
koreaherald.co.kr
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Operators Hesitant Over Commercializing Next Generation Mobile Service
By Kim Deok-hyun
Staff Reporter
Mobile phone operators are hesitating over commercializing the next- generation mobile phone from late this year as they are unsure of profitability and technical prowess.
But equipment manufacturers, including Samsing Electronics, argued that the third-generation (3G) service, widely known as IMT-2000 (International Mobile Telecommunication) contended that the service must be in full gear from late this year or early next year as the government has promised.
Amid such debates over the timing of the commercial launching of the IMT- 2000 service, Information and Communication Minister Yang Seung-taik indicated the delay. He said the government is considering a change in the timing and several policies surrounding 3G phones.
``We must conduct an overall review of when the IMT-2000 service will start because our initial projections made in late 2000 are out of tune with the current realities,'' Yang said in a report to the National Assembly on Feb.6.
As the timing of the 3G launch is likely to be delayed, investors are growing impatient for return on their investment.
Equipment manufacturers such as Samsung and LG Electronics blame the mobile phone operators and the government for intentionally putting off commercializing the 3G service.
But skeptics said there is no need to hastily start the new mobile service, due to unproven technical viability.
They cited Japan's NTT DoCoMo as a case in point. The company became the world's first mobile carrier to commercialize 3G services last October, but the service ran into trouble because of unexpected technical glitches.
Since the first award of a 3G license in Finland in March, 1999, some 110 mobile carriers across the world secured rights to operate the service, but only one company _ NTT DoCoMo _ has launched a commercial service so far, they pointed out.
Many European telecom operators have been squeezed painfully in the recent months by the cost of investing in future mobile technology. Companies like BT and Deutsche Telekom have shelled out billions of euros on assets and licenses to operate 3G services in major markets. Fears over resultant debt drove telecom share prices down dramatically in Europe.
In fact, SK Telecom's CEO Pyo Moon-soo has said the government's requirement to provide dual-band and dual-mode service was a threat to the company's deadline to launch its service.
Under the dual mode system, a phone can receive GSM or CDMA system calls. Dual mode means it can work in a digital or analog mode.
On Saturday, Suh Jong-ryeol, vice president at SK Telecom said the company would start a commercial 3G service from the second half of 2003.
``3G phones are now expected to be launched in late 2003 because of the scant availability of dual-mode handsets,'' Suh said.
In addition to making phone calls, subscribers can utilize the 3G mobile phones to get fast access to the Internet, e-mail, movies and video games.
The IMT-2000 is regarded as the wave of the future. But there is also a concern that telecommunications companies are blowing a fortune on a fringe, untested technology.
Last Dec. 2000, the government awarded two 3G licenses to two consortia each led by SK Telecom and KT, both of which plan to offer services using wideband code division multiple access (WCDMA) technology. WCDMA is favored by Finland's Nokia and Japan's NTT DoCoMo. More than 2,000 equipment and wireless content companies joined the two consortia, financing hundreds of billions of won, in a bid to reap the benefits from the new technology.
Eight months later, LG Telecom won a third license based on Qualcomm's CDMA2000 technology, by forming a consortium of more than 1,000 companies.
The three licenses, which cost a total of 3.75 trillion won, are to operate a new mobile phone standard, with transmission speeds nearly 40 times the existing standard.
kdh@koreatimes.co.kr
ÀԷ½ð£ 2002/02/17 18:28
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