Wireless broadband takes off in Korea
South Korea broke into a wireless broadband frenzy Friday with the country’s top two operators launching a volley of services. Leading mobile operator SK Telecom and fixed line carrier KT both introduced wireless internet services over WiBro – Korea’s homebrew WiMAX technology – while mobile unit KTF fired up its HSDPA network.
As of today both KT and SKT will be offering WiBro connectivity in a number of ‘hot zones’ in Seoul. As a result of the limited coverage, KT is offering discounted tariffs until year-end. Both operators expect coverage in all of Seoul by year-end.
WiBro is a homegrown Korean technology that shares compatibility with mobile WiMAX 802.16e and has a theoretical maximum speed of 20Mbps when stationary. The technology can potentially deliver speeds of 1-3Mbps while on the move at up to 120km per hour.
KT is launching with a PC data card and tariffs starting at Won6,000 for 500MB of data per month, ranging up to Won16,000 for unlimited usage. All subscriptions carry a one off Won30,000 connection fee. WiBro enabled PDAs and notebooks are expected to be introduced during the second half.
SKT is launching with a PCMCIA data card and a WiBro Unlimited Usage Plan for Won30,000 per month.
At the same time, KT’s mobile unit, KTF, also launched its commercial HSDPA service in 50 cities, supported by 2 DBDM (Dual Band Dual Mode: 2100MHz WCDMA/HSDPA, 1800MHz cdma2000 1x EV-DO) handsets.
KTF’s HSDPA service provides coverage to 80 per cent of the population in Korea, and is expected to reach 91 per cent of the population by year-end.
The two handsets, the Samsung SPH-W2100 and LG-KH1000, are capable of downloading wireless data at a maximum speed of 1.8 Mbps in HSDPA mode and 2.4 Mbps in EV-DO mode. The SPH-W2100 also supports T-DMB mobile TV services.
KTF said it plans to release up to three additional HSDPA handset models by year-end.
SKT beat KTF to the punch in terms of HSDPA though, commercially launching its network last month in 25 major cities, including Seoul, Incheon, Busan, Daegu, Daejeon and Jeju. The company plans to quickly extend its network to cover to a total of 84 cities, providing full service across the country. SKT hopes to sign up a total of 300,000 subscribers by the end of 2006.
SKT kicked off its service with the Samsung W200 and expects LG’s SH-100 to be in stores by June and four to five other models to be added by year-end.
Mike Roberts, principal analyst at telecoms.com’s parent, Informa Telecoms and Media believes the plans will face tough challenges. “The launch of WiBro by SKT and KT will be the first mass-market rollouts of pre-Mobile WiMAX service, so are an important test of the potential for Mobile WiMAX services,” said Roberts. “However WiBro is also something of a special case because it is launching into an intensely competitive market that will feature HSDPA services from SKT, EV-DO Rev. A services from LG from 2007, and EV-DO services from several operators.”
The country’s smallest operator, LG Telecom is in the process of deploying a cdma2000 1x EV-DO Rev. A network, which is expected to go live next year. LG previously abandoned plans to deploy a faster EV-DV network when vendor interest in the technology began to wane around 18 months ago.