2.5G service seen stealing show from 3G technology
Amid growing skepticism over the third-generation (3G) mobile service, IMT-2000, interim services using pumped-up versions of existing 2G technology are expected to emerge as the major force in the next-generation mobile phone market.
Consortiums led by Korea Telecom (KT) and SK Telecom (SKT) were given the green light to deploy IMT-2000 networks based on W-CDMA (wide code division multiple access) at a bidding held last December. But it now appears they may postpone launching their full-fledged 3G services, originally scheduled for May next year, saying they need time to develop equipment and work out concerns surrounding the potential profitability of the business.
The Ministry of Information and Communication remains committed to selecting another 3G operator who will provide services based on cdma2000 technology, hopefully within the first half of this year, to protect small- and medium-sized enterprises in the industry and export the technology.
However, doubts are also being raised about the plan's success as large corporations such as Pohang Iron & Steel Co. and LG Telecom refuse to get involved because of doubts about its business prospects.
After all, the government announced a plan in July 1999 to launch the IMT-2000 service in line with the grandiose opening of the 2002 World Cup soccer finals, but now a delay in the schedule seems inevitable.
The situation is little different overseas. Thus some experts predict that IMT-2000 may not get off the ground at all.
Reinforcing such negative views, Irwin Jacobs, founder and CEO of Qualcomm, said in a recent interview with the Financial Times that 3G services currently in development were not likely to be commercially viable until late 2004 or early 2005.
Alcatel, a world-renowned telecommunications equipment make of France, also forecast that handsets for 3G would make their debut to the market in late 2003 or 2004, more than one year behind schedule.
This being the case, domestic telecom operators seem to be paying more attention to 2.5G services such as cdma-2000 1X than preparations for the IMT-2000 service.
SKT invested 500 billion won in cdma-2000 1X last October and plans to inject another 1.3 trillion won by the end of this year.
KT Freetel and LG Telecom also made investments of 500 billion won each in developing the same technology to go into commercial service during the first half of this year.
Following the launch of the cdma-2000 IX service, which has a data transmitting speed of 144Kpbs, the three companies are planning to start services of the cdma-2000 evdo (HDR or high data rate), which is capable of sending data at a speed of up to 2Mbps, within the year.
HDR is considered to be almost equivalent to the IMT-2000 service both in speed and service quality, as it can transmit moving image data and offers video phoning services.
In the current situation, in which they can provide a similar level of services on the frequency bands for cellular phones or PSC, telecom companies see no reason to make haste with the IMT-2000 project which requires several trillion won in facility investments.
Moreover, the companies believe that they will be able to offer the global-roaming service, a core function of 3G services, by upgrading the existing technology.
(hsshine@koreaherald.co.kr By Shin Hye-son Staff reporter
koreaherald.co.kr |
