Mobile in Korea

LGE's Counterattack in Korean Mobile Handset Market.

(my2pac) — Tue, 21 Jul 2009 01:11:22 +0900

   For several years, Samsung Electronics had governed the Korean mobile handset market. Samsung's mobile handset had been recognized as a unchangeable number one handset to most of Korean consumers.

   However, I want to venture to say... "LGE's counterattack finally begins."

   Still, quantitative statistics regarding the Korean mobile handset market shows that Samsung's mobile handsets is governing the Korean market through maintaining around 50 % market share. However, I am feeling that many young people just started to be attracted by LGE's innovative handset design. Recently, LGE launched several popular mobile handsets such as lollipop, cookie phone and arena phone. Many young people are enthusiastic on the innovative designs and user interfaces. On the other hand, Samsung maintain their classical designs.

   I believe that LGE will overcome the old barrier of Samsung withing several years in the Korean mobile handset markets. Because I believe young people's enthusiasm on LGE's innovative handsets will spread out continusously.

KT's teaser advertising regarding iPhone is fake?

(my2pac) — Tue, 21 Jul 2009 00:29:09 +0900

On 20th July, a rumor was abroad about iPhone in Korean blogosphere. Two mysterious teaser advertising posters opened to the public through many blogs. The below posters!

   It was known that the above two advertising posters were leaked in advance. According to many blogs, KT would be supposed to post the left one on 29th July and the right one on 12th August. The posters consist of KT's new corporate logo (Alleh! KT), iPhone-style icon and iPhone image. Because of these aspects of the posters, the mysterious advertising posters spread all over Korean blogs about mobile services.

   However, KT asserted that the posters were fake. They said that there is no decision about iPhone. Because the above posters are made with very simple logo and images, it is persuasive that the posters were produced by a person who is very interested in iPhone.

   Anyway, although the posters are really fake, the fast spread-out of the posters proves that many Korean people are interested in iPhone.

iPhone in Korea?

(my2pac) — Thu, 09 Jul 2009 17:54:41 +0900

Although KT is officially saying that the plan to release iPhone in Korea is not decided, several news agencies have reported that KT would release iPhone in August. Especially, iNews24 (a Korean IT specialized news agency) reported a detail plan of KT regarding releasing iPhone.

According to iNews24, KT will release iPhone 3G in August and iPhone 3GS in September or October. In addition, it mentioned that SK Telecom does not make a decision about releasing iPhone.

In Korea, many people say that they are waiting for iPhone. Will iPhone make a big success in Korea? I am also wondering it. In my personal perspective, mobile operators should not modify anything including hardware and software, when they launch it. However, I am not sure whether KT could decide it without any modification. Because, many independent business models of iPhone collide with Korean mobile operators. For example, if KT launch iPhone without any modification, they should give up several their independant business such as Dosirak (a similar service to iTunes.). Korean mobile operators usually hope to become multi players which provide network, various services and content. However, when they launch 'PURE' iPhone and iPhone become the major trends in Korea, the mobile operators might become "DUMP PIPE"s.

We can see the result soon. When mobile operators launch iPhone in Korea, I will make a post regarding this again.

SK Telecom Released WiBro Smartphone

(my2pac) — Sun, 24 May 2009 22:59:28 +0900

   SK Telecom relased WiBro(Mobile WiMAX) Smartphone (SCH-M830) last week. The smartphone is WCDMA & WiBro dual device. WCDMA supports voice & data service and WiBro does data service. Because the coverage of WiBro is limited in Seoul and satelite cities, WCDMA help WiBro to overcome the limitation of coverage.

   Samsung developed this smartphone and Windows mobile 6.1 of Microsoft is adoped as the operating system.

   The below is a videoclip which introduces the smartphone. (The voice in the videoclip and hand are mine. However, because I explained it in Korea, you might not understand what I say.) The videoclip was posted on the official corporate blog of SK Telecom last week.

Good Try, But Good Result?

(my2pac) — Tue, 17 Feb 2009 10:41:50 +0900

Last year, I made a post regarding “internet café in public bus.” Recently, KT expanded the service through installing internet devices at 1,000 public buses. In addition, they have a plan to expand the service more through installing devices at additional 4,000 public buses.

This service is definitely brand-new and innovative services. However, it is not sure whether the service could attract usual customers into seamless internet world. Recently, inews24, a Korean IT-centric news agency, reported an article regarding this service. A reporter kept people in bus under observation.

He mentioned that, even though launching this service is a good try, they do not make good performance yet. There is no problem for internet connection. The reporter did not experience the disconnection of internet even in bus which repeats going and stopping. Moreover, he said that the internet browsing speed is very satisfying.

However, there are a few problems which might prevent many people from using the services.

First of all, handwriting cognition which the touch-screen device is providing is incomplete. It is very hard for people to write something exactly in a bus which is moving. The reporter had to try several times in order to write something exactly.

Second, whenever people do not use internet connection, the device shows several video commercials. These commercials make people to avoid the seat where the device is installed.

Lastly, even though several people become curious to the new device in bus, they usually stop touch the device as soon as they aware that the service is a pay service. Usual people seem to have no needs for internet connection in a moving bus yet.

I agree that internet café in public bus is a very innovative service. However, there are many problems to be solved in order to prosper the service.

KT Jumps into Fixed VoIP Market

(my2pac) — Thu, 12 Feb 2009 23:36:56 +0900

KT officially announced that they will pursue VoIP business aggressively. They released brand-new VoIP phone called "STYLE". (Refer to the below photos.)

The "STYLE" phone was developed ReignCom which has a reputation for MP3 player, iriver. This phone is not simple VoIP phone. KT named this type of phone "SoIP (Service over IP) phone" which supports a lot of functions such as providing home-banking service, newspaper service, internet connection, video-call and SMS.

KT was originally conservative for VoIP service, because they already dominated Korean PSTN market. As VoIP market has grown, their revenue from fixed voice service has decreased. Fixed VoIP service has jumped over and finally achieved total fixed voice market share of 10 percent in late last year.

KT maintained their lone position in the fixed voice market in spite of VoIP's steady attack. However, as the fixed number portability was available from late last year and the fixed voice market environment is changing, KT finally gave up their former position and jumped into VoIP market. KT has around 32,000 VoIP customers, but they set up a target to attract 2 million VoIP customers through protecting their own PSTN customers from other VoIP service providers such as LG Dacom and Samsung Networks and migrating them from PSTN to their own VoIP service.

Even though KT's fixed voice revenue seems to decrease by focusing on VoIP service, they is expected to make up the revenue with additional ARPU acquired from various value-added services of their brand-new "STYLE" phone.

2009 Outlook of WiBro (Mobile WiMAX) Business in Korea

(my2pac) — Tue, 20 Jan 2009 13:49:36 +0900

There will be three big changes in Korean WiBro business this year.

3 years have passed after WiBro service was launched officially in Korea. In June of 2006, SK Telecom and KT started to provide WiBro business using PCMCIA and USB dongle modems. However, only 0.2 mil users subscribed the service until the December of 2008. Even though SK Telecom and KT have made total investment of around 1,600 bil KRW for 3 years, the current performance of WiBro business is terrible. In the late last year, the Korean Government began to make various policies in order to accelerate WiBro business in Korea. In terms of the point of view, 2009 would become a very important year for Korean WiBro business.

1. Voice service on WiBro network

WiBro was originally data-centric service. In 2006, Korean Government permitted only data services such as mobile broadband on WiBro network. Thus, each WiBro device has no identification number which usual mobile handsets have. Instead of the identification number, each WiBro device has special ID which is similar to IDs of usual web services and is made of combination of alphabet characters and numbers. Because this ID is not important for users to use only simple internet connection with USB dongle modem, most of users don’t know their own WiBro ID.

However, in the Christmas Eve of 2008, Korean Communication Commission (KCC) announced that Korean Government will give identification number to WiBro subscribers and permit Voice service on WiBro network in 2009. KT, a WiBro service provider, positively replied to the announcement of Korean Government through announcing that they will provide voice service on WiBro network in 2009. SK Telecom, another WiBro service provider does not yet announce whether they will provide the voice service or not. Because SK Telecom is already operating usual mobile service using CDMA and WCDMA network, it seems very hard that they easily makes the final decision about providing the Voice service on WiBro network.

Anyway, new aspects of the situation regarding overall mobile market as well as merely WiBro market will be opened in 2009. If KT tries to penetrate mobile voice market beyond fixed communication market, including fixed broadband and fixed voice service, which KT has focused on, new competition situation in Korean telecommunication market will be built up in 2009.

2. Appearance of new entrant WiBro service provider?

As well as deciding to give the identification number to WiBro service and permit the voice service on WiBro network, KCC announced to choose new WiBro service provider in 2009. Originally, Hanaro Telecom (Current SK Broadband) was the third WiBro service provider. However, they gave up the business a few years ago and returned the wireless frequency for the business. KCC seems to ignite the competition among WiBro service providers and try to expand WiBro business in Korea through granting the remained frequency, which Hanaro Telecom returned, to a new service provider.

Yet, the official schedule for deciding a new service provider was not announced. The association of MSOs (Multiple System Operators – Cable TV Companies) is considering whether they will together try to acquire the WiBro business authority. Because, recently, commercialization of IPTV was officially decided and real IPTV will be provided this year. Major IPTV service providers are KT and SK Broadband which are fixed telecommunication companies. IPTV services of telecommunication companies will penetrate the broadcasting market which was originally dominated by MSOs. In order to protect their own business domain, MSOs might try to attack telecommunication companies through jumping into telecommunication market. WiBro is able to become a good weapon of MSOs who want to survive under tough competition with telecommunication companies.

Beside that, possibility that Samsung tries to become a new WiBro service provider might exist. Samsung Electronics is the biggest manufacturer which provides most of WiBro equipments and several WiBro devices. Even though Clearwire in US and UQ Communications in Japan are building the mobile WiMAX network and several companies in India will be chosen as mobile WiMAX service providers this year and start to build mobile WiMAX network soon, Samsung might want to drive WiBro business in Korea directly. SK Telecom and KT already made the maximum investment which they promised to make when they acquired WiBro business authorities. If SK Telecom and KT will not be able to attract more customers beyond current number of subscribers, they might not increase additional investment. Samsung might try to do the business directly and expand the WiBro business market through igniting the competition among WiBro service providers.

When the official schedule is announced and a new WiBro service provider is chosen, I will make a new post about the news.

3. Introduction of WiBro MVNO (Mobile Virtual Network Operator)

There is no MVNO in Korea, in the area of usual mobile service. However, WiBro MVNO might appear this year. When Korean Government granted the WiBro business authorities, there was a contract condition. In 2009, if any company request to rent WiBro network from SK Telecom and KT, SK Telecom and KT should enable the company to start WiBro business as MVNO.

If MSOs want to penetrate mobile communication market through providing WiBro service, they might do their WiBro business as MVNO instead of becoming a new WiBro service provider as MNO. If they decide to do MNO business, they have to make at least 800 bil KRW in order to cover only Seoul areas. (SK Telecom and KT could not make the nationwide coverage with 1,600 bil KRW.) Because this investment might become a burden to MSOs, I think that MVNO is better option for MSOs .

The above events will be hot potatoes in overall Korean mobile industry as well as WiBro area. Until last year, WiBro business was an isolate island in Korean mobile industry. However, it might make a great ramification in the overall mobile industry. I will make posts regarding the above events steadily.

New Location-based Mobile Advertisement Service

(my2pac) — Fri, 12 Dec 2008 00:01:49 +0900

Today, I’d like to introduce a mobile service. It is a location-based mobile advertisement service. Users can ccess to this service through pushing “**0” + mobile data hot key. When a user connects to the initial page, the service shows various shops which are located near the user. GPS enables the service to be operated.

I took the below photo at my home.
The service informs me of various informations about shops near my home.

Even though the service does not attract many users yet, I think this service has a growth potential. In order to make this service more active, the service providers have to attract both more advertisers and more users. However, I think this service already provides very useful information about stores such as Starbucks, Pizza Hut and Nike store near my location.

Impacts of iPhone in Korea

(my2pac) — Thu, 11 Dec 2008 23:11:31 +0900

Yesterday, the policy about mandatory WIPI on all handset in Korea was abolished. After the news, iPhone became a hot potato on Korean blogosphere. As soon as Korean Communication Commission announced that the changed policy will be applied from April 1st of 2009, KTF complained the time for the new policy. A representative of KTF mentioned that they can launch iPhone at present and complained that the time for the new policy is delayed to April of 2009. Many people showed interest in his comment. This proves that many people are interested in iPhone of Apple.

Can iPhone make a huge impact in Korea? I basically think that it is possible for iPhone to penetrate Korean market successfully. Based on my personal experience, iPhone is a definitely attractive device. (Even though iPhone is not launched officially in Korea, I had used it for a while. Because I am working at a mobile operator, I could do it.) First of all, I was surprised at the user-friendly UI. I think Windows Mobile of Microsoft can not compete with iPhone of Apple. Second, I was surprised that iPhone makes customers to use mobile data service naturally. All convenient services and applications of iPhone require data connection with 3G network or WiFi. According to Nielsen Research, 98% of iPhone users in US use mobile data connection. In addition, 43% of iPhone users pay a monthly fee of about $100. It is a marvelous result.

iPhone is making a myth after its launch. Already 3G iPhones of 6.9 mil are sold and 10,000 applications for iPhone were registered on iTune store for five months after its launch. In addition, the market share of iPhone OS already passed over the market shares of BlackBerry’s and Windows Mobile. I expect that iPhone can make a new growth engine for the stagnant Korean mobile market.

Enjoy Real-time TV Contents on IPTV

(my2pac) — Thu, 11 Dec 2008 17:35:24 +0900

Korean people are able to watch real-time television through IPTV. Even though the first IPTV was launched in 2006, contents of only VOD(Video on Demand) type have been provided for about two years. The IPTV companies such as KT, SK Broadband and LG Dacom have pushed the Korea government in order to provide real-time contents. Finally, the National Assembly passed the law allowing providing real-time TV contents in November, 2008.

KT started to provide a trial service from Nov. 17th and has 30 real-time TV channels. The number of channels will be increased. Moreover, LG and SK announced that they finalized contracting with three major TV companies and provide major airwaves from this month. From 2009, all IPTV companies will start their business aggressively.

In my case, I am using CATV at home. However, I am considering subscribing the IPTV service. New war between CATV companies and IPTV companies would break out soon.

Korean IPTV companies will conduct an opening ceremony of commercialized real-time IPTV tomorrow. I will participate in the ceremony and take some pictures. I will post them later.