WCDMA Getting Cold Response in Korea

June 26, 2004 - source: Telecoms Korea

Since the launch of wide band code division multiple access (WCDMA) service in last December, WCDMA market has shown little progress. The WCDMA licensors, SK Telecom and KTF, currently provide rental WCDMA services and each reportedly garnered only about 500 subscribers.

The number of subscribers no longer increases, because local handset makers remain unconvinced over the potential of WCDMA market. Korea is one of few countries that commercialized both of cdma2000 1x, EV-DO and WCDMA.

An official of SK Telecom, the nation's largest mobile operator, said, "The biggest problem is scanty handset availability. The market will be boosted as early as the end of next year when the problems concerning DBDM (Dual Band, Dual Mode) handsets and hand-offs are expected to be resolved."

KTF, the other WCDMA licensor and the nation's second largest mobile carrier, agreed asying, "The market will remain tepid for the time being in consideration of a slow progress in WCDMA technologies and little distinction from cdma2000 1x services."

The Ministry of Information and Communication is encouraging mobile carriers to take on WCDMA business. In response, SK Telecom and KTF started investing in WCDMA, improving the prospect for service quality.

SKT recently issued a purchase order for base stations, repeaters and exchangers to Samsung Electronics, SOLiD Tech and DST. It projects that an increasing number of WCDMA base stations and repeaters will improve WCDMA service quality and contribute to market activation.

KTF also is gearing up for WCDMA system stabilization in Seoul and the Capital area, purchasing additional base stations, repeaters and exchangers.

However, the system improvement pursued by both WCDMA licensors is rather complementary investment than expansion of service area. Therefore, the number of subscribers to WCDMA service is not likely to increase drastically.