1 Posts about '2010/06/15'
New Mobile Operator in Korea :: 2010/06/15 17:14
Currently, there are three mobile operators in Korea, SK Telecom, KT and LG Telecom. A new mobile operator will launch their mobile service in July of next year. KMI (Korea Mobile Internet) submitted the application for providing their own service to the Korean Communications Commission on 11th June.
They announced to build up WiBro (Mobile WiMAX) network and provide VoIP service based on WiBro and mobile broadband service next year. In Korea, SK Telecom and KT are already providing WiBro service, but they only cover mobile broadband service, not voice (VoIP) service on WiBro network. Also, KMI said that they will focus on MVNO business, so customers can use cheaper mobile services rather than the existing providers' services.
The major shareholders of KMI includes Samsung Electronics and Samsung Electronics is expected to provide WiBro network equipments instead of invest in KMI directly. KMI mentioned that about twenty companies participated in the investment, but they did not disclose the list of the companies this time.
To be honest, I am not sure whether they can make a soft-landing in the Korean mobile market as a new service provider which has a starting capital of 410 bil won (around $0.35 bil). Above all, They need about $2 bil to build up the nationwide WiBro coverage. Also, in the Korean mobile market, the existing three mobile operators such as SK Telecom, KT and LG Telecom poured marketing expenses of around $8 bil into the market for 2009. It may be asked whether they can bear the attack of the other mobile operators in the saturated mobile market.
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