(Korean) Carriers eyeing wireless Internet boom
Over 80 percent of mobile handsets on the market are capable of delivering wireless Internet services, setting the stage for the much-anticipated growth of mobile commerce in the coming months, industry sources said yesterday.
According to mobile carriers and handset manufacturers, 83 percent of mobile handsets were equipped with wireless Internet solutions as of the end of January this year. The rate, one of the highest in the world, poses both challenges and opportunities for carriers.
Korea's wireless carriers could not be in a better position to ride a wave of the faster-than-expected spread of high-powered mobile handsets that can deliver third-generation, or 3G, services.
The current mobile standard, known as cdma2000 1x, is a leading 3G technology that can transmit data at up to 144Kbps. Although a full video clip is hard to download due to the costs, mobile users are increasingly embracing multimedia services such as photo album downloads and simplified Internet surfing on the go.
More than 18 million mobile handsets used by subscribers, or 65 percent of total, have a wireless Internet browser based on wireless application protocol (WAP). All the latest handset models are equipped with better, much more powerful Internet surfing functions.
The problem is that mobile carriers have yet to move up the actual usage rate of wireless Internet to 50 percent.
The domestic wireless Internet market is now estimated to surpass 1.1 trillion won in 2002.
The Ministry of Information and Communication said wireless Internet services would generate 587 billion won in voice call charges, 140 billion won in value-added data usage and 559 billion won in SMS (short messaging service).
Major mobile carriers and content providers pin much hope on the growth of wireless Internet services this year. CEOs predicted revenue from wireless Internet would likely double from last year.
KTF, the country's second largest mobile carrier, said its wireless Internet service is a "make-or-break" item for 2002.
One of the major wireless Internet issues for mobile carriers and content providers is the opening of the mobile networks that would expand the wireless market further.
State-run telecom giant KT Corp. is eager to open up its network as well as that of its mobile subsidiary KTF, while pressuring SK Telecom to do the same.
KT, KTF, LG Telecom and Dacom are working on commercial services based on the wireless server. SK Telecom is set to test the combination of its network with KT in April.
Content providers, meantime, are scrambling to come up with a variety of services in preparation for the opening of the wireless networks. Until now, they have had few choices in operating their services in accordance with the demand and requirements of mobile carriers.
Mobile carriers themselves are racing to develop their own applications in a departure from their longstanding focus on the growth of wireless Internet subscribers.
Major applications include m-commerce solutions, mobile certification, billing and mobile coupons.
KTF is set to launch a mobile credit card service beginning in May. KTF, Kookmin Credit Card and KTF Technologies jointly demonstrated the new service last week ahead of full-fledged commercialization.
The demonstration was to showcase the wireless transaction from mobile subscribers' handsets to retail sellers' point-of-sales terminals. The service is expected to allow mobile subscribers to pay money for their purchases via wireless credit card transactions, doubling as real-time credit cards.
KTF said it will launch an m-commerce mobile handset equipped with personal financial data in its IC chip, opening the way for a variety of wireless financial services such as banking, stock trading and membership programs.
LG Telecom is also testing a mobile credit card system in partnership with Kookmin Credit Card and an infrared telecommunications startup. The company said it will roll out infrared-enabled handset models within this month in order to launch a commercial service in 10 cities where the World Cup finals are to take place, beginning at the end of March at the earliest.
SK Telecom is in talks with its Moneta card partners such as Kor-Am Bank, Hana Bank, LG Capital, Samsung Credit Card and Korea Exchange Credit Card to adopt a mobile credit card solution.
SK Telecom said it plans to forge a joint venture of $10 million with Visa International to supply about 300,000 reader machines to small and midsize retailers.
Another significant mobile application item is a wireless coupon service. KTF is getting ready to launch a mobile coupon service in a bid to digitalize the existing paper-based coupon market. The move comes as the mobile coupon market is estimated to grow by around 200 percent a year amid growing public interest in m-commerce.
(insight@koreaherald.co.kr)
By Yang Sung-jin Staff reporter
2002.03.11
koreaherald.co.kr |
