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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 (29858)	12/9/2002 9:16:47 AM
From: foundation	Read Replies (1) \| Respond to of 197207

SK Telecom Wages Uphill Battle for 3G Mobile Service SK Telecom, the nation's largest mobile carrier, is bracing for an uphill battle in its much-trumpeted debut of a next-generation mobile phone. Last February, the company launched commercial service of what it claimed was third-generation (3G) mobile service amid great fanfare, offering customers high- speed Internet access and videoconferencing on their mobile phones. But the service has been proved to be a great disappointment. Through the next-generation cell phone service, known as CDMA2000 1X EV-DO (evolution data optimized) that can relay high-speed video and other data, the company said it hoped to attract 500,000 domestic subscribers by the end of this year. However, the EV-DO service, which is available in 23 major cities nationwide, hasn’t caught on as quickly as the company had hoped. At the end of November, SK Telecom had attracted only 15,000 people to its next-generation mobile phone _ far below its target. The surprisingly lukewarm response clouded the company's ambitious 3G plan. ``Because of continued delay in EV-DO handset shipments, we are unable to attract new customers for the service,'' said a senior SK Telecom executive. ``We believe it will have minimal impact on our earnings,’’ he stated. For the third quarter, SK Telecom reported 717 billion, up from 699 billion won in the previous quarter. Its sales rose to 2.22 trillion won from 2.11 trillion won in the second quarter on higher subscriber numbers and increased use of data transmission services. ``The wireless communications market will continue to achieve a higher growth rate, thanks to the explosive demand for data communications services,'' he said. To boost sluggish customer demand, SK Telecom launched a pricey ad campaign under the brand name of ``June’’ last August. Instead of heralding what the EV-DO is, the company’s new ad strategy has focused on what customers can do with the new technology. Industry observers have also questioned the company’s two-pronged 3G plans. In December 2000, SK Telecom was awarded another 3G license based on a Europe- based wideband-CDMA technology, also widely known as IMT-2000 here, for 1.3 trillion won. The company's 3G unit, named SK IMT, is preparing to launch a commercial operation of the 3G phone next September. SK IMT is in the process of selecting a prime equipment vendor for the commercial launch. According to the company officials, it will finalize the first contract worth 200 billion won this month. Prior to the commercial roll-out, SK IMT is expected to merge with its parent company, SK Telecom. Total mobile subscriptions in Korea reached 32 million at the end of November and penetration rates increased to more than 66 percent of the total population. By Kim Deok-hyun Staff Reporter kdh@koreatimes.co.kr 12-09-2002 17:16 times.hankooki.com ========== Perhaps even SK will make the lesson hard.... do isn't primarily a story of peak speeds and exclusive services... do is about abundant, cheap capacity and data.