KT may clash with KTF over 2.3GHz spectrum
By Yang Sung-jin Staff reporter
2003.02.25
koreaherald.co.kr
KT Corp., the country's largest telecom provider, faces an internal conflict over the 2.3GHz spectrum for which a license is to be granted by the Korean government later this year.
The showdown will be staged between KT and its mobile unit KTF, with an internal clash between the subsidiaries inevitable for the much-coveted spectrum reserved for 2.3GHz mobile Internet services.
KTF is already the country's No. 2 mobile carrier, offering cdma2000 1x EV-DO services to its subscribers. KT, the nation's largest broadband carrier, is taking full advantage of its firm grip on fixed-line networks.
Some observers have noted that KT and KTF are attempting to increase their chances in receiving the spectrum license by bidding separately instead of as a single entity.
Simply winning the spectrum license may not be that simple or even a guarantee of dominating the market. KT has been preparing for a mobile Internet-service based on the 2.3GHz spectrum. Three test facilities have been installed and related technologies are being developed.
KTF recently launched a task force to research a 2.3GHz service. The logic is that the 2.3GHz mobile Internet service is bound to overlap with its core wireless phone service, and that it has to secure its share in the new standard, if necessary.
The team, established a week ago, is spearheading the company's bid to join the 2.3GHz service race. It is set to bid for the license regardless of whether its parent KT competes for the same spectrum or not.
The stakes are high. Compared with current 2.4GHz wireless LAN (local area network) services, 2.3GHz services are expected to offer a wider coverage and better mobility for high-speed Internet subscribers. The maximum data transmission speed under ideal conditions is about 1Mbps, which is workable for most individual and corporate Internet users.
Hanaro Telecom Inc., the country's second largest broadband carrier, demonstrated the 2.3GHz Internet service technology last year, and argued it can achieve a sort of 3.5G mobile telephony by piecing together data and voice services through VoIP (voice over Internet protocol).
Hanaro officials said that the 2.3GHz Internet service charge could be lowered to one tenth of wireless Internet services over the CDMA mobile phone network.
KT and Hanaro are keen to secure 2.3GHz spectrum in order to strengthen their landline ADSL (asymmetric digital subscriber line) Internet access services. But mobile carriers remain wary about the motive of KT and Hanaro.
SK Telecom and KTF officials argued that 2.3GHz services, if implemented, are very similar to EV-DO and W-CDMA 3G services in terms of functionalities for subscribers. The convergence of fixed-line and mobile Internet technologies, therefore, poses a dilemma to all the parties involved.
KTF fears that KT might rush into the mobile phone market by introducing a new service that combines fixed-line and mobile Internet technologies, while allowing its subscribers to make cheaper wireless calls through VoIP.
KTF is set to finalize the merger with its sister mobile unit KT ICOM next month. KT ICOM was originally scheduled to launch W-CDMA 3G service in June this year, but KTF executives are now uncertain about the specific launching date, mindful of jittery investors.
The Ministry of Information and Communication (MIC) has yet to decide on the issues including the number of licensees. Given that there is 100MHz of 2.3GHz spectrum, KT claims the information ministry should grant the spectrum to two licensees for 50MHz each.
But the ministry has not given any hint about the number of licenses they will grant, sparking speculation in the mobile industry. MIC officials repeated their earlier stance that a standard will be set within this year and nothing has been decided on the number of licensees and spectrum fees.
(insight@koreaherald.co.kr) |
