KT, South Korea’s largest fixed-line and WiBro operator, has created new business opporunities combining WiBro with other services in ways to expand its WiBro market and increase users. Last year KT kicked off a trial run of its WiBro-based Mobile IPTV, which was successful. Now it is expected among Korean WiBro operators, KT and SKT, that their WiBro business will gain momentum with the launch of Mobile IPTV service after the roll-out of 4G networks capable of providing 100Mbps data transfer rates that mobile IPTV requires.

Mobile IPTV is widely regarded as an IP-based multimedia service platform that embodies a combination of ubiquity, IP, and personal. Through Mobile IPTV users will be able to make a phone call over the internet, watch TV programs or UCC videos on the web, and enjoy various interactive services in an all-in-one device having relatively high efficiency when compared to DMB.  

Source: Samsung Electronics

According to KT insider it is assumed that the numer of subscribers to mobile IPTV can amount to the number of mobile phone users, which is four times bigger than possible fixed IPTV subscribers. So, it is certain that mobile IPTV will be an attractive service platform for IPTV service providers to use.

Source: Samsung Electronics

KT, South Korea’s largest fixed-line telephone operator and leading WiBro service provider, has been in a dilemma, whether to opt for WiBro(a Korean version of WiMax) or LTE(3GPP Long Term Evolution) as potential 4G mobile technology after its planned merger with KTF.

KTF, Korea Telecom Freetel, is the country’s mobile phone service provider in favor of LTE-based 4G technology in that LTE can be used on its existing 3G networks.

Now KT has been hesitant to push WiBro, fearing the technology may cannibalize KTF’s mobile phone business and knowing LTE technology is most likely to become the mainstream 4G standard. Most experts say that now it may be the right time for KT to decide which path to take for the next generation technology so that KT can take the lead in the 4G mobile market against SK Telecom, South Korea’s leading mobile phone service provider. It would be interesting to watch which one of them will be selected for KT’s 4G strategy afterwards.

2008 Top 10 News on Korean Technology Market is continued from Part 1.

6. WiBro (Mobile WiMax) is going global

Korea’s WiBro players such as Samsung, KT and PosData are harvesting in its global market penetration. For example, Sprint-Nextel started to provide Mobile WiMax service over Baltimore with Samsung.

Also WiBro players have some achievements in 2008 as following (click to see detail).

7. Korea, Nation of e-Democracy

At first half, Korean netizens were busy to discuss about controversial and political issues including US beef imports and Grand Canal Plan on the internet.

Those discussion on the internet actually triggered candlelight vigil nationalwide. In Korea, internet is considered as the space for swaying public opinion. However while providing an opportunity for discussion and feedback about stories, the culture of posting comments has highlighted the dark side of the Internet, where people irresponsibly express extreme opinions from behind a cloak of anonymity.

8. Consolidation deepens in communication industry

Market consolidation on Korean communication industry is being accelerated. Three major camps, SK , KT, and LG are competing at mobile, IPTV, broadband and VoIP market.

Last February, SK Telecom, the leading mobile operator, merged Hanaro Telecom (as is SK Broadband), the broadband operator, last February. M&A between KT and KTF seems to be progress next year and LG Dacom, LG Powercom, and LG Telecom are considering M&A as well.

9. Changes on regulatory body

Korean government founded Korean Communications Commission (KCC) on March. Befor its foundation, MIC (Ministry of Information and Communications) regulated mainly telecom and communication industries, and Korean Broadcasting Commission regulated broadcasting market. However KCC is responsible for enforcement of communication regulations and communication service policies, whose role is similar to Ofcom in UK. Recently KCC is pursuing several policies related to next-generation service and reducing telecommunication prices including IPTV commercialization, number portability for VoIP, and allowing Voice over WiBro with 010 prefix number used for mobile phone.

10. Transforming to 3G

Transforming to 3G is accelerated in 2008. KTF and SKT promoted their 3G services competitively at the first half, therefore 3G penetration rate rose around 30%. SK Telecom and KTF is operating WCDMA, but LG Telecom is providing Lev.A currently. As following chart, 3G subscribers are increasing continuosly.

As 3G subcribers are increasing, various value-added services using USIM card are also providing to customers, including mobile payment, transportation card and so on.