SK Telecom spending too less on 3G says minister

February 17, 2004

South Korean mobile operator SK Telecom has been urged by the government to increase investment in WCDMA technology. Vice Information and Communication Minister Kim Chang-gon said that extra investment is in the interest of both the mobile market and the company itself.

"It is desirable for mobile phone operators to decide their levels of capital expenditures from a long-term perspective," Kim said in a press conference.

Despite being the top operator in South Korea with 18 million subscribers or 54% of the mobile phone market, SK Telecom has invested less than KTF even though it has a huge lead in both revenue and profits. Earlier this month, SK Telecom chief executive Pyo Moon-soo said his company would spend less than 250 billion won on WCDMA, compared to KTF's 250 billion won. (£1 = 1,903.7 won)

Kim says investment from operators is key to 3G success and also the success of domestic mobile equipment manufacturers and content providers.

Both SK Telecom and KTF are offering commercial 3G WCDMA mobile service but a lack of handsets and limited network coverage has given few reasons for consumers to sign up. The operators are enjoying more success with its other 3G network based on EV-DO technology, which has more coverage and wider range of handsets.