5 Posts about 'WCDMA'

SKT’s breakthrough for data business leadership :: 2010/07/17 18:18

On 14th July, SK Telecom announced new policies regarding unlimited data plans and mobile VoIP.

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SKT’s CEO is announcing several changes regarding their service at SKT's headquarter building.

Many smart-phone users have complained SKT’s operational directions for several years and praised KT by the reason that KT tries a lot of innovations, including launch of iPhone in Korea and offering of their Wi-Fi network to KT’s users. In order to break the prejudice, SK Telecom tried to change many small things. For instance, in January 2010, SK Telecom announced that they would install Wi-Fi network and open the netwok to all people, including SK Telecom’s subscribers and competitors’ subscribers. However, these small tries were not able to change the negative atmosphere surrounding SK Telecom among smart-phone users.

This time, SK Telecom made a big decision. SK Telecom decided to allow customers use their 3G mobile network (WCDMA) in case that customers subscribe price plans which monthly fee are over 55,000 won - around 50 USD. SKT’s new decision created a sensation among Korean smart-phone users. At many online communities regarding smart-phone, many people acclaimed SK Telecom’s new decision.

Globally, most of mobile operators are reluctant to provide unlimited data plans because this plans might cause severe overloads on their mobile networks. Before SKT’s decision, all Korean mobile operators also had policies that make customers use mobile data services within limited network traffics. LG U+ (former LG Telecom) has provided monthly amount of data traffic the most aggressively. KT has supplemented customers’ data usages with their Wi-Fi network and is maintaining a policy to use both 3G mobile network and Wi-Fi network in order to meet their customers’ data usage needs. In early this year, SK Telecom also seemed to pursue a similar strategy to utilize both 3G network and Wi-Fi network.

However, SK Telecom seems to turn their direction of strategy completely with this week’s announcement. I think that SKT’s new strategic direction will make its competitors such as KT and LG U+ be worried about their strategies about mobile data services. I think that it is very hard for KT to make similar strategies, because KT does not have sufficient network capacity to cover their all subscribers’ usage. Reactions of KT and LG U+ will be very interesting point in the half of this year.

As well as unlimited usage of 3G mobile network, SK Telecom allowed mobile VoIP on WCDMA network. This change is evaluated as an innovative decision. Because allowing mobile VoIP might cause cannibalization to SK Telecom’s voice revenue. Since KT launched their new brand for 3G service in March of 2007, SK Telecom has maintained defensive stances regarding disruptive services. Many people criticized SKT’s defensive strategies. However, I think SK Telecom might get out of the passive images by this new plan about mobile VoIP. In addition, Korean people seem to be able to use Skype or Google Voice on their smart-phones and save their communication costs.

I hope SK Telecom’s changes can become an inflection point of evolution and development of Korean mobile industry. As many people use mobile data services freely, more innovative mobile data services can appear in this dynamic market.

2010/07/17 18:18 2010/07/17 18:18


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SK Telecom Released WiBro Smartphone :: 2009/05/24 22:59

   SK Telecom relased WiBro(Mobile WiMAX) Smartphone (SCH-M830) last week. The smartphone is WCDMA & WiBro dual device. WCDMA supports voice & data service and WiBro does data service. Because the coverage of WiBro is limited in Seoul and satelite cities, WCDMA help WiBro to overcome the limitation of coverage.

   Samsung developed this smartphone and Windows mobile 6.1 of Microsoft is adoped as the operating system.

   The below is a videoclip which introduces the smartphone. (The voice in the videoclip and hand are mine. However, because I explained it in Korea, you might not understand what I say.) The videoclip was posted on the official corporate blog of SK Telecom last week.



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2009/05/24 22:59 2009/05/24 22:59


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KT decided not to provide voice service on WiBro :: 2008/11/04 23:58

I made a post regarding 'Voice Service on WiBro (Mobile WiMAX)' in last August. SK Telecom has maintained a negative stance about voice service on WiBro because voice service on WiBro might cause the cannibalization effect toward SKT's existing voice service on CDMA and WCDMA. However, KT had asked that the government should grant the voice service of WiBro. KT has ever demonstrated the VoIP service using WiBro in OECD Ministerial Meeting of last June. KT seems to solve all technical problems for providing VoIP service using WiBro.

However, KT changed their stance regarding voice service on WiBro. Through 3rd quarter conference call, KT announced that they would not provide voice service using WiBro for quite some time. Why does they change their stance? I think there are two reasons.

First, KT might be concerned about the cannibalization effect as SK Telecom. KT has a plan to become incorporated with KTF, one of their subsidiaries. KTF is a mobile operator and provides CDMA and WCDMA service. If KT provides voice service on WiBro, the service would come into collision with KTF's existing business models.

Also, the coverage and quality of service for voice service might be burdens to KT. The coverage of KT's WiBro service covers only 40% of Korean population. Moreover, KT's WiBro service does not support sufficient quality for voice service in INDOOR SPACE. KT has often communicated with customers by informing that WiBro service could make the best performance in outdoor space. Thus, KT should enlarge the service coverage and improve the quality of service in indoor space as well as outdoor space in order to pursue the voice service on WiBro. It might be not a easy decision.

On the other hand, the Korean government seems to be disappointed that SKT and KT are passive for WiBro business in domestic market. A few days ago, the Government announced that another new WiBro service provider will be selected next year. The Government has additional 27MHz available whithin 2.3 GHz bandwidth. It will be given to a new service provider and both data service and voice service are expected to be permitted on WiBro network. The Korean Government wants to invigorate the WiBro business in domestic market by raising new competition among KT, SKT and a new service provider.

The Korean mobile market is wondering which one will be a new WiBro service provider.

2008/11/04 23:58 2008/11/04 23:58


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Stagnation of SKT's Growth :: 2008/10/31 00:46

The biggest mobile operator in Korea, SK Telecom announced 57% decline in its third-quarter profit. The higher marketing costs seems to be a root cause of the decline.

SK Telecom has competed with KTF in order to attract customers with WCDMA(3G) service. SK Telecom has maintained its doninant position with market share of over 50%. However, SK Telecom has poured extraordinary marketing cost for attracting 3G service users. Although SK Telecom succeeded to defend its market position against KTF and LG Telecom, the total number of mobile services has not increased. Because most of 3G service users are not new users of mobile service but existing users who only change their mobile service from 2G to 3G.

The penetration rate of Korea's mobile market is already over 90%. Additional growth in the domestic market might be not expected any more except for mobile data service area.

Please refer to the below table regarding SK Telecom's profit.

(Unit : $Bil) Q3.2007 Q4.2008 Increase Rate
Profit 776.8 333.6 -57%

2008/10/31 00:46 2008/10/31 00:46


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[Statistics] Mobile Market Size of South Korea in 2008 :: 2008/06/16 13:44


[Statistics : Mobile Market Size of South Korea (June, 2008)]



  CDMA WCDMA Total Market Share
 SKT 17,268,965 5,332,384 22,601,349 50.52%
 KTF 8,290,623 5,789,448 14,080,071 31.47%
 LGT 8,056,320 - 8,056,320 18.01%
 Total 33,615,908 11,121,832 44,737,740 100.00%

  • Population of South Korea : 47,925,000
  • Penetration Rate of Mobile Service : 93%

2008/06/16 13:44 2008/06/16 13:44


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