Mobile in Korea

   KT officially announced that they will pursue VoIP business aggressively. They released brand-new VoIP phone called "STYLE". (Refer to the below photos.)

    The "STYLE" phone was developed ReignCom which has a reputation for MP3 player, iriver. This phone is not simple VoIP phone. KT named this type of phone "SoIP (Service over IP) phone" which supports a lot of functions such as providing home-banking service, newspaper service, internet connection, video-call and SMS.

   KT was originally conservative for VoIP service, because they already dominated Korean PSTN market. As VoIP market has grown, their revenue from fixed voice service has decreased. Fixed VoIP service has jumped over and finally achieved total fixed voice market share of 10 percent in late last year.


   KT maintained their lone position in the fixed voice market in spite of VoIP's steady attack. However, as the fixed number portability was available from late last year and the fixed voice market environment is changing, KT finally gave up their former position and jumped into VoIP market. KT has around 32,000 VoIP customers, but they set up a target to attract 2 million VoIP customers through protecting their own PSTN customers from other VoIP service providers such as LG Dacom and Samsung Networks and migrating them from PSTN to their own VoIP service.

   Even though KT's fixed voice revenue seems to decrease by focusing on VoIP service, they is expected to make up the revenue with additional ARPU acquired from various value-added services of their brand-new "STYLE" phone.

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   Samsung Networks launched a new service which offers both VoIP and cellular service with a handset. If a guy buys a smartphone of Samsung Electronics (SCH-M620) and subscribes this service, he can use VoIP service in WiFi hotspots of Samsung Networks and use usual celluar service of SK Telecom in other areas.

   Mobile VoIP is usually recognized as a killer of mobile operators. However, WiFi/Cellular Dual-mode VoIP service is not. SK Telecom, the largest mobile operator in Korea, recognizes this service as a new opportunity. Although SK Telecom has about 50% market share of mobile communication in Korea, the customer base consists of individual person. SK Telecom may expect to get corporate customers using Wi-Fi/Cellular Dual-mode VoIP serivce.

  Samsung Networks has acquired many corporate customers with fixed VoIP service. With the converged service, it is expected for Samsung Networks to expand its business area to mobile VoIP and attract more corporate customers.

  A few days ago, KT, the largest korean fixed communication company (PSTN and broadband), announced that it will start fixed VoIP service. KT might feel strong threat from the growth of many VoIP operators.

  I think interesting competition among communication companies will be initiated by VoIP. Someone who uses VoIP as an effective weapon will be sure to win the game in the communication market.

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