Mobile in Korea

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.

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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.

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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.

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Today, Korea Communications Commission which aims to manage broadcasting and communication in Korea as a government organization decided to abolish the policy about mandatory WIPI (Wireless Internet Platform for Interoperability) on all handsets in Korea. From next April, mobile handsets can be launched without WIPI in Korea.

The policy was applied on April. 1, 2005. The Korean government had two objectives with this policy.

First of all, they intended to make mobile applications to be developed efficiently. In early 2000, various wireless internet platforms such as BREW of Qualcomm and J2ME were used on handset in Korea. This situation prevented mobile application companies and mobile operators from developing applications efficiently. Mobile application companies had to develop each platform-based application in order to provide their applications through all handsets. Through the single wireless internet platform, WIPI, mobile players could provide their service with only one version of applications.

Second, Korean mobile industry intended to spread its own mobile technology to the world. Even though Korea had very innovative mobile services in early 2000, these services depended on foreign companies' technologies. (For example, even though Korea is the first country which commercialized CDMA technology, most of CDMA technologies belonged to Qualcomm.) Korean government initiated to develop an unique wireless internet platform and wanted to expand this platform to the global market. They wanted to make a Korean version of BREW and J2ME which are popular in many countries' markets.

However, the implication of this technology exists no more. The global trends about wireless platform have been changed fast. Especially, as open operating systems such as iPhone OS and Google's Android expand their territories, the closed platform, WIPI is losing its power and prevent Korean mobile industry from developing.

Concerned with the changed policy, I think the change has both positive and negative impacts on Korean mobile industry.

Positive Impacts

1. Various foreign manufacturers including Apple, Nokia and Sony Ericsson can break into Korean market and customers will become free to choose their handsets. Up to now, Korean mobile handset market has been dominated by three Korean companies, Samsung, LG and Pantec. Even though Nokia has number 1 position in the world market, they can not run their business in Korea. The changed policy will enrich Korean customers' mobile experiences.

2. Mobile operators can their competitiveness through applying various open OS for their services. The penetration rate of smart phone in Korea is very low. (Two percent or less) However, the changed policy will stimulate mobile operators to consider adopting various smart phones which have open OS.

Negative Impacts

1. Small Korean mobile companies might not thrive under tough competition environment. Up to now, they could focus on only WIPI and developed only one version of application. However, under the open environment, they should develop various versions for an application. For example, they should develop a version for iPhone and another version for Android. Several successful companies can make bigger success under this open competition environment. However, most of small companies would struggle to thrive.

Anyhow, the Korean mobile industry is trying to change steadily. I believe that the Korean mobile services and technologies will make great impacts on global mobile industries.

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