(Korean) Mobile carriers cautious over W-CDMA investment plans
Although the Korean government is keen to promote a dual wireless system, carriers appear reluctant to make another major network investment fraught with risk and uncertainty. The Ministry of Information and Communication (MIC) awarded the so-called W-CDMA third-generation (3G) spectrums to SK Telecom and KTF, both of which are now readying to introduce commercial services later this year.
SK Telecom, the country's largest mobile carrier, in addition to No. 2 player KTF, however, seem increasingly hesitant in mapping out their own W-CDMA plans. Earlier, KTF said that it would launch W-CDMA 3G services in June while SK Telecom said that it would follow suit in September.
Currently, their plans might be altered in a way that casts doubts over the viability of establishing two different, yet competing mobile networks in a country where Qualcomm's CDMA (code division multiple access), wireless technology predominates.
All the three carriers in Korea - SK Telecom, KTF and LG Telecom - are currently offering 3G services known as cdma2000 1x, which are essentially based on Qualcomm's licensing of its wireless technology patents to handset makers.
In particular, SK Telecom and KTF launched what is called EV-DO services last year, something that they hope will jumpstart the data-oriented wireless content market. EV-DO - or evolution data optimized - is an upgrade to the existing 3G network, increasing the data transmission speed to 2.4Mbps under ideal conditions.
Interestingly, SK Telecom and KTF are now confronting a dilemma in pushing for dual standards. W-CDMA 3G service is a development of next-generation wireless technology derived from the European standard - GSM (global system for mobile communication).
Analysts and experts say that it will take some time before the two carriers start to refine their W-CDMA technology and develop related mobile content. Also, a dispute has arisen as to whether W-CDMA services would serve the interests of investors' amid rising worries over overlapping facility investments.
With investors expressing concerns over the envisioned W-CDMA service, SK Telecom and KTF are now showing some reservations over the issue. Ambiguous remarks such as "flexible implementation" are flying around the mobile industry, sending some analysts wonder whether they will meet their implementation schedule.
Earlier, SK Telecom revealed that it would invest 520 billion won in W-CDMA this year. KTF earmarked 234.8 billion won for both EV-DO and W-CDMA in 2003. Both companies stressed that the figures are not final and subject to change, depending on market conditions.
On Thursday, SK Telecom chief executive Pyo Moon-soo said that the company's investment plan for W-CDMA is designed to resolve spectrum limitations for its mobile services, particularly in the metropolitan area where a rising demand for multimedia tends to clog the entire network.
Although SK Telecom's Pyo tried to alleviate the mounting concerns of investors, widespread skepticism still lingers, analysts said. At issue is whether SK Telecom can actualize profits from its W-CDMA service, whose technology has yet to be proven in the market.
SK's Pyo said that the investment plan for W-CDMA will be "flexibly implemented" in accordance with the rollout of compatible handsets and developments underway in cdma2000 1x EV-DO service.
KTF was also loath to comment on its future investment plans for W-CDMA. Instead, it continues to assert that its investment plan will be modified to meet the changing demand from EV-DO and W-CDMA.
KTF deferred the formal announcement of investment plans for its W-CDMA service until after its merger with KT ICOM is finalized in March. It said that it will stick to its original plan of offering a commercial version in June.
(insight@koreaherald.co.kr)
By Yang Sung-jin Staff reporter
koreaherald.co.kr |
