Abstract

Multiple Network Technologies Beneficial for Development of Diverse Terminal Products

Currently, Korea is commercially using CDMA2000, WCDMA/HSDPA and WiBro networks. Apart from LGT which only has a CDMA2000 network, the SK Group and KT Group all have networks based on the three abovementioned technologies. SK Group also provides S-DMB services.

After Korea's two largest mobile communications service providers, SKT and KTF, obtained WCDMA operating licenses, they chose not to upgrade their CDMA system networks to CDMA2000 1x EV-DV. In 2006, their WiBro services also went commercial. Therefore, their future wireless broadband systems will be based around WCDMA/HSDPA and WiBro systems. Korea has been promoting WCDMA services for three years now and in June 2006, Korea also updated to HSDPA. However, factors such as some digital content services that still use CDMA services content, coverage of less than 50%, and a lack of CDMA/WCDMA dual-mode mobile phones have affected the willingness of users to upgrade to WCDMA/HSDPA services. Therefore, penetration rates of WCDMA/HSDPA services in Korea are still not even at 0.01%.

The Korean government is planning to establish a Mobile Special District starting in 2007 that will encompass all current commercial wireless broadband networks. This special district will establish GSM/GPRS/EDGE, DVB-H and TD-SCDMA system networks which are not used commercially in Korea. If this plan for a Mobile Special District by the Korean Ministry of Information and Communication can be completed as planned, some places in Korea may have network environments that simultaneously consist of TD-SCDMA, WiBro, DMB, DVB-H, HSDPA and CDMA2000 networks by 2010. This would greatly lower the amount of time Korean communications equipment and terminal manufacturers spend on R&D and testing and would also improve their time-to-market capabilities.

For communications service providers, it is very hard to simultaneously develop multiple network technologies given the limited market environment and their currently limited investment resources. Therefore, priority must be given to certain networks. Judging from current developments, WiBro is developing much slower than originally planned. However, for equipment, terminal device and service platform enterprises, an environment with various communications network specifications all mixed in together will be beneficial for the development of equipment and service platforms. From this we can see that the Korean government is using the Korean market as a test bed in the hope of increasing Korea's overall export value.

Appendix

List of Companies