Mobile in Korea

  I've been to WiMAX Forum Congress Asia 08 from 8th April to 10th April. I am wondering whether mobile broadband based on WiMAX (and LTE) will succeed in developed markets (in terms of mobile service) including Korea, Hong Kong and Japan.

  In the Congress, many participants from emerging markets including India, Malaysia, Indonesia and Pakistan are expecting that WiMAX will perform an important role for roll-out of broadband service. The penetration rates of fixed broadband service in emerging markets are very low under 10%. The providers think the broadband service is a great opportunity for growth and are trying to expand the service through their countries. Because they did not have fixed broadband infrastructure like fiber optic and copper line, they must invest much money in order to provide the broadband service. In this case, mobile or nomadic broadband using WiMAX is more efficient than fixed broadband using fiber optic or copper line. Moreover, some countries including Malaysia and Indonesia consist of many islands. It is very difficult for them to build fixed infrastructures over the whole countries.

  However, developed countries including Korea and Japan have different environments. For example, the penetration rate of broadband service in Korea is over 80%. In addition, there are so many PC cafe providing computer and fast speed internet connection. Usual Korean people might have no needs for mobile broadband. Because the environment of internet connection is well developed, they do not like taking a laptop when they are out of home and do not want to subscribe the mobile broadband service like KT WiBro and SKT T LOGIN. Even if WiBro service was launched in 2006, the number of subscribers is only 150,000 up to now. A pay Wi-Fi service, Netspot, which is a simmilar to mobile broadband service, is not also evaluated as a successful service in Korea. (It has attracted about 400,000 subscribers since 2002.)

  KT is focusing on another business opportunities using WiBro. KT also thinks that it is difficult for WiBro to expand with only mobile broadband service which provides an internet connection with usb modem or PCMCIA card. KT is trying to develop various mobile service using WiBro. For example, mobile education service was launched for undergraduate students of SKKU. KT announced today, that a full browsing service on a smart phone will be provided. However, I am not sure that the efforts and strategies for expansion of WiBro service would give a great result to KT.

  I am agree that many innovative mobile services like full browsing, mobile education and mobile health service must attract users for WiBro in order to succeed in developed markets. However, why do we have to consider WiBro as the network for the services? There are alternatives like HSDPA and CDMA. LGT succeeded to provide full-browsing service using CDMA EV-DO Rev.A and already attracted 50,000 users for 15 days after launch.

  I am wondering how WiBro or WiMAX service can survive in developed markets.
 

   KT WiBro attracted 100,000 subscribers in the late November. Although KT launched the WiBro service at June last year, KT had only 5,000 subscribers until last March. However, since last April, KT attracted, on an average, 12,000 subscribers every month.
  
   In Korea, there are three kinds of mobile broadband service. KT WiBro is mobile WiMax service based on data service. Meanwhile, SKT's T LOGIN and KTF's iPlug are HSDPA services based on voice service. SKT and KTF can not push the mobile broadband services because the services share the HSDPA network with voice service. However, because WiBro is a network for only data service, KT might be able to push the service aggresively.

   Although someone says that 100,000 subscribers of KT WiBro are due to KT's aggressive promotion, the acheivement must be the steppingstone for the expansion of mobile WiMax service. In 2008, SKT has an investment plan for WiBro service. I expect the korean mobile broadband market will be exciting in 2008.