Chances are Not Good for WiBro based VoIP in Korea
An investment report predicted that VoIP service which is spotlighted as one of killer applications of WiBro service is not much likely to bloom at least in Korea. The report said that there are too many conflicts of interest for the service to take a root in the local market. KT, the nation’s WiBro provider, might adopt VoIP in an effort to revitalize sagging business but it could erode voice service sales of KTF, KT’s wireless carrier affiliate.
In the report, NH Investment and Securities, a local stock brokerage firm, said that WiBro based voice service might be cheaper than mobile service, but problems such as fairness in frequency use, concerns over possible reduction in mobile service sales, and difficulties in device distribution would make it difficult to commercialize the service in Korea. “Some mobile operators in the U.S. or Southeast Asia could adopt mobile WiMax based voice service as a substitute for HSDPA service. But in Korea, if it would happen, it would be after 2011 when 4G service is expected to begin,” said NH.
If WiBro service is facilitated, KT would prevail in the market thanks to its experiences. It can also be an option for LG Telecom, which has yet developed a roadmap after cdma2000 1x EV-DO Rev.A service, said the report. LG Telecom, Korea’s smallest wireless carrier gave up on 3G business license and launched EV-DO Rev.A service recently to compete with HSPDA service of its bigger rivals.
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