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SK Telecom Sticks With W-CDMA

November 10, 2003 - source: BWCS

South Korean mobile operator SK Telecom has refuted reports that it is dropping plans to launch a W-CDMA network. In a report Monday’s Financial Times a senior source at SK Telecom was quoted as saying that the deployment of W-CDMA was “under review”. However the company has denied that this meant that it would dump the European 3G standard but rather that it would not make any firm decisions on the scale of its W-CDMA rollout until next year. SK Telecom will go ahead with the introduction of W-CDMA services in the capital, Seoul, at the end of this year.

Despite the fact that SK Telecom has reiterated its support for W-CDMA there seems little doubt that South Korea’s largest mobile operator has some significant concerns over the cost of deploying the 3G technology on a national scale. In its original timetable SK Telecom had planned to launch W-CDMA services in 32 cities by May 2002, with national coverage in place by the end of 2003. However, like other mobile operators, the company has slowly pushed back its commercial launch dates and is adopting a wait-and-see approach.

SK Telecom is closely monitoring the progress of early W-CDMA services, such as those launched by Hutchison 3G in the UK and Italy, to determine its own 3G strategy. This cautious stance comes in stark contrast to SK Telecom’s trailblazing approach to the introduction of CDMA2000 1xRTT and 1xEV-DO. It has be offering CDMA2000 services since mid-2000 and now more than 40% of its 18 million subscribers are signed up to 1xRTT or EV-DO services.

So why doesn’t SK Telecom continue its CDMA2000 migration to EV-DV (data and voice) and ignore W-CDMA? According to the operator the crucial issue is its increasingly crowded radio spectrum. The success of CDMA2000 mobile data services is putting an increasing strain on SK Telecom’s spectrum resources. A move to EV-DV would do little to alleviate this problem but its W-CDMA licence brings with it valuable additional spectrum. For this reason it seems likely that W-CDMA will initially be deployed in South Korea’s major cities where the spectrum bottleneck is most acute. How far and fast it will be rolled out beyond this will depend very much on how W-CDMA performs in other markets over the next 12 months.

 


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