Battle between 3G Network and Wi-Fi :: 2011/02/02 13:50
As the adoption rate of smartphone has drastically increased since the last year, the two major mobile operators, including SK Telecom and KT, have come up with various measures to deal with the situations. Interestingly, two companies are going separate ways.
In order to handle the sudden demand of mobile data traffic, KT concentrates on Wi-Fi network. Comparing their Wi-Fi network coverage with SKT’s Wi-Fi Coverage through TV commercials, KT promotes their superior Wi-Fi network and tries to appeal to potential customers who have plans to buy smartphones. Actually, the number of KT’s national Wi-Fi hotspots is 30,000, while SKT has only 10,000 Wi-Fi hotspots. In my opinion, this strategy comes from KT’s inherent position, the first Korean fixed telecommunication operator. KT has a wide coverage of fixed broadband network and is able to install Wi-Fi hotspots anywhere more easily rather than competitors.
On the other hand, SKT focuses on 3G Network to handle the increasing mobile data traffic. According to its recent announcement, SK Telecom reinforced their 3G data network by expanding their frequency assignments from 4FA to 6FA and allotted 3FA into mobile data services. Additionally, SK Telecom announced they will commercialize LTE (3.9G) network in the incoming July. Even after SK Telecom decided that they would concentrate on 3G network, they have also tried to strengthen their Wi-Fi network. Until 2009, SK Telecom’s Wi-Fi network was very weak, but they have built 10,000 Wi-Fi hotspots and have an additional plan to increase the hotspots by 45,000 in 2011.
Nobody knows whether which operator’s strategy is better, but I think smartphone users will eventually depend on mobile network rather than Wi-Fi network. If we only use our smartphone indoor, Wi-Fi network would be sufficient for our smartphone usages. However, we have many applications which we usually use on street. For instance, when I wait for a bus on street, I use an application which shows the estimated time of bus arrival. In order to use this kind of services, I cannot find any active Wi-Fi hotspot.
In 2010, the total number of smartphone subscribers was 7 million, and the number will be expected to reach to 20 million in 2010. Eventually, the data traffic will also increase drastically. 2011 will be the new beginning year to prove which player’s strategy is better.
SK Telecom's TV Commercial
KT's TV Commercial
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