Mobile in Korea

Today, LG Electronics announced that they will launch the first Android phone in late February through KT. Even though LG has the second position in the Korean mobile handset market, they had no Android phone in order to counterattack the other handset providers such as Apple, Samsung and Motorola. Their new Android handset is based on the European version 'LG GW620.' They customized this modem for Korean market.

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.