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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: foundation who wrote (14585)	9/4/2001 8:44:22 AM
From: foundation	Read Replies (1) \| Respond to of 196633

(Korean) Mobile carriers focus on wireless Net With the much-vaunted cdma 1x network gaining momentum, Korea's mobile phone market is poised to see carriers promote their wireless Internet services in September. Major carriers hope that cdma 1x, an upgraded version of the existing wireless network, will boost the demand for wireless Internet data services. Color-screen mobile handsets, though their price is too burdensome for most users, are also expected to help increase data demand. Analysts said carriers are keen to grab an initiative in publicity and market this month after the LG Telecom-led consortium clinched the third and last third-generation (3G) mobile license based on Qualcomm's cdma2000 technology Aug. 25. The number of mobile phone users, meantime, is declining slightly. As of the end of July, the total number of mobile phone users in Korea was 28.0 million, down from 28.09 million a month earlier. Analysts said the downward trend is expected to continue, projecting that the figure might be 27.97 million, down about 30,000 from the total in July. By company, SK Telecom accounted for 10.97 million users and its sister unit, SK Shinsegi Telecom, came out with 3.14 million. KTF, the country's second largest carrier, served 9.5 million, followed by LG Telecom with 4.34 million. Service providers said the downward trend is due to the saturation of the market and the ban on handset subsidies, a factor that previously sparked strong demand. The tepid growth of the user base, meantime, has led to marketing strategies targeting teens. The move is aimed at cultivating the last untapped segment of the market. Teens are relatively comfortable with the wireless Internet and related solutions, offering a promising user group for service providers. Last month, SK Telecom introduced TTL Ting. This service for teens offers generous free SMS (short messaging service) and community functions. KTF followed suit with "bigi," a service in which parents can modify the charge rate. LG Telecom is brandishing Khai holeman for teen users. Separately, the mobile phone service market is still mired in the rate cut dispute. Civic organizations claim that mobile carriers should lower the rates as part of efforts to help cushion the worsening economic situation. Back in July, the Ministry of Economy and Finance announced it would lower the mobile phone rate in the second half, stoking the dispute. In late July and early August, mobile carriers announced their first-half results. Most of them posted large-scale net profits, prompting civic organizations to call for a rate cut. But KTF said it has yet to make up for the accumulated loss valued at 800 billion won resulting from the merger with KT M.com, though it posted 113.4 billion won in net profit in the January-June period. LG Telecom posted 98.9 billion won in net profit for the first half, but its accumulated losses are yet to be cleared. Even SK Telecom, which posted 632.3 billion won in net profit for the first half, expressed dismay at a cut in the mobile phone rate. The Ministry of Information and Communication plans to review the case in September and finalize the scope of the rate cut. Analysts said mobile service providers are set to invest heavily in their 3G service network in coming years, a factor that requires cash reserves and makes it hard for them to accept a rate cut. (insight@koreaherald.co.kr) 2001.09.05 koreaherald.co.kr