Eliza Nguyen on September 28, 2009
According to Reuters, South Korea’s KT Corp plans to introduce Apple’s iPhone supporting WiFi and WiMax technology in South Korea. KT’s chief strategy officer Pyo Hyun-myung told Reuters that it also plans to release WiFi and WiMax enabled 3G smartphones from Samsung Electronics and LG Electronics, which will be available from late November.
A local media source, MaeKyung, reported on Sunday that KT and Apple have signed an iPhone offering contract; yet, details such as whether KT obtained exclusive iPhone distribution rights in Korea are unconfirmed. According to Telecoms Korea, Apple received approval from the Korea Communications Commission (KCC) radio research laboratory that will accelerate the long-awaited smartphone launch in Korea’s cellular market.
According to Telekoms Korea, iPhone’s LBS (location-based service) features, such as “Google Map,” and “Find my iPhone” violate local rules set by regulator KCC, media source Maekyung’s reports. A similar case arose in April, when Nokia released its navigation-enabled smartphone, the Nokia 6210s, without a navigation utility to avoid a legal dispute. However, KT decided to allow WiFi connectivity as it is fiercely wanted among prospective iPhone buyers.
Presently, the Korean mobile market is highly saturated, with 97 percent of the Korean population owning a mobile phone. “Consumers are generally happy with voice services, but they have lots of complaints regarding mobile data –those new handsets will become the mainstream,” Pyo said. He also revealed that once the government will finalize it subsidiary program to promote mobile technology, KT would expand its WiMAX network, presently limited to Seoul and adjacent areas, to the entire country.
Unfortunately, Korea’s cellular market is dominated by a near duopoly comprised of Samsung Electronics and LG Electronics. Controlling 80 percent of the cellular industry’s market share, the two giants sell their products in Korea at mobile phone ASPs (Average Sales Price) higher than in other countries. The introduction of Apple’s iPhone into the local market could mean an end to the duopoly and a warm welcome to competitive prices.
According to Comtex, IE Market Research Corp., the Canadian-based provider of market intelligence services, just published its 2Q09 South Korea Mobile Operator Forecast, announcing that the number of total subscriber in South Korea will increase from 45.6 million in 2008 to 52.6 million in 2013. SK Telecom will continue to be the largest operator in the country with 26.6 million subscribers in 2013, followed by KTF … Read the rest