Mobile in Korea

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.

   There are public buses which provide internet cafe using WiBro (Mobile WiMAX). KT started to provide ;WiBro Internet Cafe in Bus' service in Seoul. Several seats in a bus have devices equipped with touch-screen panel. Currently, it is free service for trial. People who want to enjoy internet or use a streaming music/video service are able to do those activities in a bus. Please refer to the below pictures for your understanding.

   According to the recent conference call of KT, KT got only 4 percent ROI from WiBro(Mobile WiMax) business. While one and half year has passed since commercialization of WiBro, KT was not able to find a bright idea for business expansion. Even if KT has invested about 500 million USD to WiBro Business, the revenue from WiBro was only 20 million USD and the number of subscriber is 70,000. Until last May, the number of subscriber was less than 10,000.

   Last month, The ITU Radio Assembly approved WiBro as an official IMT-2000 Interface. However, no one expects that WiBro will make a fast expansion in Korea. MIC (Ministry of Information and Communication) approved WiBro as only data service. As far, No Voice Serivce on WiBro in Korea.

   I am wondering that WiBro business can be operated with only data service. There is a simmilar example in Korea. In 2001, KT launched Netspot, a wireless broadband service using hotspots. However, the increase of subscribers stopped and the number is about 400,000. I think it is the maximum number of subscriber for mobile and wireless broadband service in Korea.

   Under the agreement with Korean government, KT and SKT should invest more than 500 million USD next year. How can they get sufficient return from the investment?

   I was surprised at the data plan of Sprint. Sprint has a monthly $39.99 mobile broadband plan for only 40MB data usage. Just only 40MB?? It is very hard to understand that users accept the price plan in order to use mobile broadband service. Mobile broadband is different from usual mobile internet service that is provided on usual handset. Usual web surfing requires more data traffic campared with usual mobile data service on handset. What can I do on internet whithin 40 MEGA BYTE????

Tariff of Sprint's Mobile Broadband

   Korea is one of the most developed countries regarding mobile broadband. There are three services for mobile broadband, T LOGIN of SK Telecom, WiBro of KT and iPlug of KTF. The three operators just have a simple business model for mobile broadband. The services make users connect to internet with their laptops having USB modem or PCI modem card. However, users are not satisfied with the the simple services and feel that the price for mobile broadband services are too expensive.

  Most of Korean people use the fixed broadband service in their home. In addition, there are so many internet cafe in Korea. Most of people can connect to internet without mobile broadband service when they want. There are few people who have needs for mobile broadband service.

  In addition, people think the price is too expensive for them to use the mobile broadband service. If they want to use the mobile broadband service, they have to pay about $20~30 a month for limited data usage(about 1GB) - Currently, KT offers a promotion price plan for unlimited usage until next March.- Even if it is cheaper compared with the service of other countries including US and Japan, most of people think the price schem is not reasonable for broadband service. They consider the tariff compared with the tariff of fixed broadband service. They usually pay $20~30 a month for unlimited usage in order to use the fixed broadband service in their homes. Moreover, the most of fixed broadband services gaurantee high speed of 10Mbps. Korean users think the mobile broadband is slower and more expensive service than the fixed broadband.

  Operators are offering the unlimited options in order to promote the service in the initial stage. However, if the promotion period is ended, many users might stop using the services.

  Operators need another business model except for simple internet connection services. Operators are making efforts to develop new business models. They launched WiBro-embedded PDA or PMP and considered developing WiBro-embedded digital camera. However, there are not any cool business model yet. If someone find a gorgeous business model for mobile broadband, he or she might be a star or a millionaire.

  Anybody has a gorgeous business model for mobile broadband???