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News
Issue #2001 - 41
(October 2001)
(Updated Oct.
12, 2001)
INFRASTRUCTURE, PRODUCTS & SERVICES
Korea Gets in First with Nascent
3G Mobile Service
If you want a taste of the much anticipated arrival of
third-generation mobile phones, look not to Japan, but Korea, which
has a one-year jump on its neighbor in offering the latest phones
capable of swapping video and data.
The mobile future works, judging from the nearly 1.2 million
South Korean consumers chatting and swapping pictures on phones that
use an alternative to the technology which NTT DoCoMo, the
fast-growing mobile sensation, plans to offer next week in Japan.
High-tech theologians may debate whether South Korea's new
services are ``true 3G'' since they are based on a different
technology to the one which more than 100 countries are gearing up
to use around the globe, but customers see no difference.
On a Seoul subway, it's common to see teenaged girls and young
women kill time by playing games, downloading pictures and
exchanging messages using flashy colour-screen mobile phones.
The appeal stretches to new picture phone features that allow
friends to watch each other as they gossip.
``I spend about 30 minutes a day using my mobile phone to play
games,'' said Kyong Jin-a, 23, who belongs to a group selected by
KTF , one of Korea's three mobile carriers, to study the novel ways
consumers are using the new phones.
``Personally, I like to download digital photos onto my screen,
which takes one minute to one and a half minutes. That's pretty
fast, I think,'' she said, referring to snapshots she has taken of
her daily life.
The graphic features go well beyond the voice and text messaging
of Kyong's old phone. She used to swap about 100 short messages a
month with her friends, but now can share photos.
Her service provider, KTF, is Korea's second largest mobile
operator. It began cdma2000 1x services in major cities in July.
All three South Korean carriers now offer the new services,
nicknamed ``1x''.
SK Telecom , the market leader with half of South Korea's almost
28 million mobile subscribers, has converted nearly one million, or
seven percent, of those subscribers to the upgraded system since it
started its 1x service in October.
1x was developed by Qualcomm of the U.S. and is a 3G technology
that allows graphics or digital music to be grabbed off the
Internet.
The technology boasts CD-quality sound and data transmission at a
top rate of 144 Kilobits per second, according to the International
Telecommunications Union.
Observations Of 3G Implementation Worldwide
"There's been a very fast
uptake of 1x,'' said Matt Hocker, a technology analyst for
investment bank UBS Warburg in London.
"We're using Korea as a test case for new services in
Europe,'' he said. "There is a possibility that network
operators might settle for using 1x and postpone an upgrade to pure
3G technology."
While consumers elsewhere may wait years to see such services --
the United States, for example, has not even scheduled the airwave
auctions necessary to build the higher capacity networks -- mobile
operators are counting on Korea and Japan to justify the huge
investments they are making in such multimedia networks.
Still, despite the much-hyped high speeds that 1x offers, Korean
mobile carriers admit that data transmission is in reality slower
than the promised 144 Kbps. "Actually, the speed is around 60
to 80Kbps, depending on how many users are trying to get on the
system,'' said Lim Byeong-yong, vice president of corporate strategy
team at LG Telecom. LG, the smallest of Korea's three mobile
carriers, began its 1x service in May.
NTT DoCoMo has had to live with lowered expectations of its own
after software glitches and a shortage of new phones capable of
handling faster data rates forced the Japanese carrier to delay the
introduction of its 3G services to October 1 from last May.
Youth Market Proves Biggest Audience
LG's Lim said the biggest market for its latest phones is young
subscribers in their teens and twenties, who account for fully 50
percent of its CDMA 1x RTT users.
"A 30-year-old user may be our client for 30 years or 40
years from now. But teenagers and young people are potential
subscribers for 60 years or more,'' he said. "So our marketing,
naturally, is focused on younger generations.''
LG, which won a 3G license in August, 2001 said that it would move on to an
advanced service based on Qualcomm's technology to offer more
sophisticated applications, including streaming video, at a rate of
several megabits per second.
"We plan to launch a genuine 3G service in the second half
of next year or early 2003 at the latest,'' said Lim.
SK Telecom and KFT, which won 3G licences last December, also
plan to offer enhanced services using W-CDMA technology, favoured by
DoCoMo and Finland's Nokia , late next year or in 2003.
Source of this news item : Reuters
For More Information: http://www.ktf.com
Mobileinfo Comments and Advisory: Korea
deserves more credit than has been showered exclusively on NTT DoCoMo
and i-Mode. We applaud KFT, SK Telecom and Korean licensing authorities
in moving forward with 3G.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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