Mobile in Korea

   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?