Mobile in Korea

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.

my2pac

   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.

my2pac