Video calls in out-of-way areas? High quality wireless Internet content downloadable from anywhere in the country?

At SK Telcom’s Board of Directors’ meeting on August 31, a decision was made to expand investment to develop the WCDMA business, a 3.5G asynchronous mobile phone service, and to deploy a nationwide. HSDPA network.

Through the Board of Directors’ meeting, SK Telecom has decided to add an additional KRW 240 billion in 2006 investments in HSDPA, and complete the expansion of the nationwide network by the first half of 2007. Consequently, SK Telecom’s total investment in HSDPA this year increases from KRW 570 billion to KRW 810. However, the Company revealed that since the additional investment of KRW 240 billion is to be procured through investment cost savings resulting from limiting existing CDMA network investments to essential areas and adjusting investment priorities, there would be no change in the total capital expenditure for 2006 of KRW 1.6 trillion.

Such a decision by SK Telecom is one step forward from the existing strategy of deploying the HSDPA networks in 84 cities by the end of October this year and expanding the market through DBDM (dual-band dual-mode; uses both 800MHz and 2GHz frequencies) handsets.

SK Telecom remarked that the DBDM handsets supporting HSDPA lacked competitiveness compared to the existing 2G handsets in terms of width, design and price, resulting in higher marketing costs, and that there were limitations in promoting the 3.5G mobile phone market. The strategy is to release SBSM (single-band single-mode; 2GHz frequency exclusive) during the first half of next year when the nationwide network is deployed in order to continue acquiring market leadership in the WCDMA market.

Also, the Company plans to expand global synergy with prominent overseas businesses such as overseas roaming, global content and solutions, and concentrate its competency so that HSDPA may acquire differentiation as a next-generation mobile communications service.

Also, with the nationwide deployment of the HSDPA network, SK Telecom plans to maximize synergy through an appropriate portfolio strategy among networks including the existing 1X, EV-DO networks. Competitive advantage will be continuously maintained in the synchronous CDMA network (800 MHz) for voice and medium / low speed data, while the SBSM handset, which is cheaper than the DBDM handset, will be used to position the asynchronous HSDPA network (2 GHz) to provide advanced data and communications services to customers.

Going forward, SK Telecom plans to establish HSDPA, a 3.5G mobile phone, into a service based on four concepts to pursue sophistication of services:
1) “Visual concept”, focusing on high quality video calls, customer-participating content and mobile game upgrade;
2) “Internet concept”, by expanding Internet direct access services and linking with fixed line content;
3) “Global concept”, centered around automatic roaming services;
4) “Convenience concept”, focused on transportation cards, mobile banking, credit card settlements.

Bang-Hyung Lee, executive vice-president and head of SK Telecom’s Business Group, remarked “In order to cope with the rapid evolution of technology and diverse convergence services, it is necessary to provide diverse services that adhere to consumer needs and product purposes, through on optimum combination of several network technologies. SK Telecom is leading the development of the 3.5G market, being the first in the world to launch HSDPA handsets, one step forward from WCDMA, in mid-May, and by completing the deployment of the nationwide network by the first half of next year, we will provide HSDPA services with no inconveniences or disconnections to satisfy our customers.”

SK Telecom has launched “Overseas Internet Roaming Services”, through which the user can connect easily to the Internet with his/her e-station ID, password and mobile phone number, and allows the use of the Internet at low fees.

“Overseas Roaming Services” targets SK Telecom customers that frequently use their laptops overseas, such as for travel or business trips.

For the “Overseas Internet Roaming Services”, a partnership has been set up with iPass, the world’s largest VNO that has ties with approximately 300 local internet service providers around the world. It is a service through which wireline, wireless access is possible in the airports, cafes and hotels of approximately 70 countries around the world. Without a separate subscription process, the local Internet network can be accessed through the connection program with a single ID (e-station ID, password, mobile phone number), and the advantage is that fees are an average 10% lower than local rates. Payment is settled after usage, and added to the mobile phone usage fee, and thus it is convenient because separate settlement need not be made during travel or business trips.

In the case of laptops with a wireless LAN card installed, the service can be used in approximately 42,000 access points in 67 countries, such as the U.S., Japan and Europe where wireless connection is possible, while in the case of wired access, the service can be used in approximately 1,800 access points (hotels, airports, etc.) in 48 countries including the U.S., Australia and Europe.

Customers that wish to use the “Overseas Internet Roaming Service” must download the access program from SK Telecom’s roaming webpage (www.sktroaming.com) and install it in their laptops, and when overseas, move to wireless or wired line access points, and connect to the Internet with use of the connection program.

Fee plans per region are applied on a daily basis. In the case of wire line access, from 12 pm ~ 12 pm, rates are $9.32/day in North America, $18.7/day in Europe, $16.82/day in Asia-Pacific, and $18.7/day in other regions. For wireless access, from 0 am ~ 0 am, rates are $5.57/day in North America (excluding T-Mobile HotSpots), $9.99/day in North America (T-Mobile HotSpots), $16.82/day in Europe, $6.51/day in Asia-Pacific, and $18.7/day in other regions.

Inquiries into more detailed information on usage method, accessible areas and fee plans are possible through SK Telecom’s roaming webpage (www.sktroaming.com) or roaming customer center (1599-2011, charged) > 1. automatic roaming service guide (open 24hrs on business days, closed on weekends and holidays).

SK Telecom’s head of Global Roaming Business, Lee Sung-Young, remarked, “The overseas Internet roaming services complements the narrow coverage and high rates of existing wireless Internet services. Going forward, we will continue to expand overseas Internet roaming coverage, so that the service becomes an essential in overseas travel along with automatic roaming services.”

SK Telecom announced that it had established an MOU for cooperation in the “TD-SCDMA Project”, the first non-Chinese telecom service provider to agree on cooperation with China’s National Development and Reform Commission (NDRC) on development of TD-SCDMA, China’s 3G mobile telecom technology standard.

TD-SCDMA(Time Division-Synchronous CDMA) is a 3G mobile telecom technology standard that has been submitted to the ITU by the Chinese government, and has been acknowledged as a next-generation mobile telecom technology standard by the ITU along with CDMA2000 and WCDMA.

With the establishment of the MOU, SK Telecom and China’s National Development and Reform Commission have agreed on building a cooperative model for joint Korea-China development in the telecommunications industry, for not only TD-SCDMA technology but also beyond 3G technology and 4G, and to make use of the resulting diverse achievements in a direction that adheres to the interests of both parties.

By next year, SK Telecom plans to deploy a TD-SCDMA experimental station in Korea’s Bundang area, make use of the Company’s network deployment and service operation experience to proceed with tests on TD-SCDMA technology and various value added services, enabling the improvement in TD-SCDMA network performance and its commercialization in China.

Also, SK Telecom and China’s National Development and Reform Commission will establish a TD-SCDMA service development center to pursue joint research and development in 3G multimedia services, value added services and platforms.

With the establishment of the MOU for cooperation on TD-SCDMA technology, SK Telecom will make use of its world’s best operation technology and expertise in CDMA, EV-DO, and HSDPA to assist in development of TD-SCDMA related technology, acquire understanding and capability in TD-SCDMA technology, and search for numerous business opportunities in China’s convergence area.

Moreover, through such a working relationship between the two parties, SK Telecom expects its China business, into which SK Telecom has committed a great deal, to gain much momentum with the support of the Chinese government.

Also, SK Telecom and its business partners(handset makers, equipment manufacturers and solutions providers) may develop TD-SCDMA products and services based on the experimental station, resulting in opportunities to enter the China market in IT-related industries as well as diverse economic repercussions.

A personnel from China’s National Development and Reform Commission expressed high expectations about the cooperative relationship, saying, “We will do all we can in providing the necessary support and cooperation so that the project with SK Telecom can be conducted smoothly.”

SK Telecom’s CEO Shin-Bae Kim remarked on the significance of the agreement, saying, “The Ministry of Information and Communication has continuously pursued Korea-China cooperation in the IT industry, and the MOU has been realized with its interest and support. With companies around the world actively seeking entry into China’s telecommunications market, SK Telecom being the first foreign telecom service provider to establish a cooperative relationship with China’s NDRC on TD-SCDMA technology signifies the full recognition of SK Telecom’s technological prowess.”

China’s National Development and Reform Commission is an economic policy department that manages the establishment of China’s macroeconomic policies, management of economic indicators and conduct of large-scale national projects, and is responsible for the approval and licensing of major policy issues.

SK Telecom and China’s National Development and Reform Commission held a ceremony to sign the MOU on TD-SCDMA Project Cooperation on August 29, 3 p.m. at the Lotte Hotel located in Sogong-dong, Seoul, and discussed means of cooperation for development of the telecommunications industry of the two countries. Before signing of the MOU, SK Group Chairman Tae-Won Chey met with China’s National Development and Reform Commission to discuss cooperation for business with China, saying, “We will develop the cooperative relationship between Korea and China in not only mobile telecommunications but other diverse business areas as well.”