Market Analysis and Activation plan of WiBro in Korea

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WILL THEY, WIBRO AND HSDPA, CO-EXIST IN THE KOREAN MOBILE INTERNET MARKET? Lee Sang Man Lee Sang Man, Park Myeong Cheol, Hwang Jae Hyun, Kim Min Kyoung Information and Communication University 119 Munji-dong, Yuseong-gu, Daejeon, 305-732, South Korea Tel: +82-42-866-6333, Fax: +82-42-866-6831 E-mail:{ysml8077, mcpark, hjh2700, mkkim}@icu.ac.kr Abstract In April 2006, WiBro, Korean mobile WiMAX, was commercialized for the world’s first time by KT, a major wireline service provider. Although many research institutes and mobile service providers also have forecasted WiBro’s demand and its profitability positively, the number of subscribers is only just more than 20,000 as of July 2007. In addition, HSDPA, having very similar service characters with WiBro, was also commercialized by SKT, a major wireless service provider in June 2006. Some industry experts forecast that WiBro may glimmer as CT-2 phone, ISDN, and Iridium services. This paper has two research objectives. The first is to present killer application to each service. The second is to indicate the method that both services can be co-existed in the Korean telecommunications market. Keywords: mobile Internet service, WiBro (portable Internet), HSDPA (WCDMA), joint commodity, co-existence, killer application

Transcript of Market Analysis and Activation plan of WiBro in Korea

Page 1: Market Analysis and Activation plan of WiBro in Korea

WILL THEY, WIBRO AND HSDPA, CO-EXIST IN THE KOREAN MOBILE INTERNET MARKET?

Lee Sang Man

Lee Sang Man, Park Myeong Cheol, Hwang Jae Hyun, Kim Min Kyoung

Information and Communication University

119 Munji-dong, Yuseong-gu, Daejeon, 305-732, South Korea

Tel: +82-42-866-6333, Fax: +82-42-866-6831

E-mail:{ysml8077, mcpark, hjh2700, mkkim}@icu.ac.kr

Abstract

In April 2006, WiBro, Korean mobile WiMAX, was commercialized for the world’s

first time by KT, a major wireline service provider. Although many research institutes

and mobile service providers also have forecasted WiBro’s demand and its profitability

positively, the number of subscribers is only just more than 20,000 as of July 2007. In

addition, HSDPA, having very similar service characters with WiBro, was also

commercialized by SKT, a major wireless service provider in June 2006. Some industry

experts forecast that WiBro may glimmer as CT-2 phone, ISDN, and Iridium services.

This paper has two research objectives. The first is to present killer application to

each service. The second is to indicate the method that both services can be co-existed

in the Korean telecommunications market.

Keywords: mobile Internet service, WiBro (portable Internet), HSDPA (WCDMA), joint

commodity, co-existence, killer application

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Contents

I. Introduction

1. Background Knowledge……………………………………………….3

2. The object of paper…………………………………………………….3

II. Market trend

1. What is WiBro?......................................................................................4

2. Emerging background of WiBro and HSDPA in aspect of CAGR…....4

3. Wireless technology roadmap………………………………………....6

4. Differences between WiBro and HSDPA……………………………..6

5. WiBro and HSDPA service in Korea………………………………….7

III. Methodology

1. Survey form………………………………………………………….8

2. Study model………………………………………………………….9

3. Questionnaire………………………………………………………...9

IV. Analysis of data and discussion

1. Common questionnaire……………………………………………..10

2. Service and Marketing side…………………………………………13

3. Political point of view………………………………………………17

4. Technical point of view……………………………………………..20

V. Summary and Limitations………………………………………………22

References………………………………………………………………………25

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I. Introduction

1. Background Knowledge

In April 2006, WiBro, Korean mobile WiMAX, was commercialized for the world’s

first time by KT, a major wireline service provider. Although many research institutes

and mobile service providers also have forecasted WiBro’s demand and its profitability

positively, the number of subscribers is only just more than 20,000 as of July 2007. In

addition, HSDPA, having very similar service characters with WiBro, was also

commercialized by SKT, a major wireless service provider in June 2006. The number of

subscribers of HSDPA subscribers is more than 1,200,000 as of July 2007(KTF:

1,000,000, SKT: 200,000). Some industry experts forecast that WiBro may glimmer as

CT-2 phone, ISDN, and Iridium services.

As far as we know, few studies addressed the issue whether WiBro and HSDPA are

complementary or substitutive services. They also have insufficient evidence to support

the market positioning for the service in which it is suited for each service character.

These existing research analyses served that WiBro to be lagged in the current Korea

mobile communications market. Therefore, it is worth while address these questions: 1)

“Why is WiBro service lagging in Korean telecommunications market?” and 2) “What

makes this lagging situation? What is the method to vitalize WiBro in the Korean

mobile Internet market?

2. The object of this paper

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Considering these ideas, our paper will have two research objectives. The first is to

present optimal market positioning of each service. The second is to indicate the method

that both services can be co-existed in the Korean telecommunications market.

II. Market trend

1. What is WiBro?

WiBro stands for wireless broadband Internet. It can realize lower cost, higher speed

than mobile phone Internet and add mobility. Using WiBro, we can enjoy high speed

Internet even when we moving. Many of people believe that WiBro can realize

Ubiquitous society.

2. Emerging background of WiBro and HSDPA in aspect of CAGR

Figure 1 Emerging Background of WiBro (unit billion $)

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<Source: KISDI>

Figure 1 shows the emerging background of WiBro in aspect of CAGR (Compound

Annual Growth Rate). As you see this figure, the annual growth rate of voice telecom

market, both fixed and wireless, is decreasing; while that of data service market is

increasing. Especially that of wireless market is very big. But there are some limitations

of the current wireless internet equipment. First, the current mobile phone has

disadvantages such as low data rate but high charge. Second, the wireless LAN has no

mobility and a narrow cell coverage of about one hundred meters or less. These factors

have made a new mobile wireless internet service appear. The new mobile wireless

internet service has some advanced features such as good mobility and coverage as well

as higher data rate but lower charge than the existing cellular phone.1

3. Wireless technology roadmap

1 2006, 8, MIC

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Figure 2 Wireless technology roadmap

<Source: MIC>

Figure 2 indicate wireless technology roadmap. As you see in this <figure 2>,

WiBro/WiBro Evolution system is on the road to 4G like HSDPA, 3G Evolution, and 1x

DO A and B.2

4. Differences between WiBro and HSDPA

Figure 3 shows differences between WiBro and HSDPA in aspect of service

characteristic and positioning. As <Figure 3> shows, they have different service

characteristic and positioning. That is, WiBro based on data service and has weakness in

mobility. In the meanwhile, HSDPA based on voice service and strong to mobility

compared with WiBro. These differences linked to find suitable market positioning in

the mobile Internet market.

2 2006, 8, MIC

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Figure 3 differences between WiBro and HSDPA

<Source: MIC>

5. WiBro and HSDPA service in Korea

In June 2006, WiBro and HSDPA were commercialized for the world’s first time.

Now, Seoul and metropolitan areas are serviced by KT, KTF and SKT. <Figure 4> is

service roadmap of WiBro.

Figure 4 WiBro service plan in Korea

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<Source: MIC>

III. Methodology

1. Survey form

We chose a survey form as interviews to ten experts. Below table shows the member

of experts we had interviewed Table 1.

Table 1 constitutions and average working years of experts

Experts Average working years

public research institute 5 5.2 years

MIC 1 15years

University 3 4.6 years

Information &communications company 1 10 years

Questionnaires in our survey consist of common, service and market aspect,

regulations aspect, and technical aspect to interview current and future situations for

WiBro and HSDPA: 10 for Common questionnaires, 7 for service and marketing aspect,

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6 for regulations aspect, and 14 for technical aspect. We analyzed survey results of four

different parts of questionnaires simultaneously rather than evaluating each survey

result and foresighted implementation of WiBro and HSDPA to co-exist

2. Study model

Our study model adapted the expert Delphi research method. We interviewed

against 10 experts for questionnaires about service and marketing, regulations, and

technologies in WiBro and HSDPA. After interviews, we analyzed and took the step of

requesting feedback for not coinciding items among experts’ opinions. After all we

induced the foresight of WiBro and HSDPS market in current as well as future. Experts

explained the answers rather than score because it can derive the answers and situation

relating to our research subject from the experts in detail and discuss opinions between

experts and our team.

Finally, we proposed the implementation for the co-evolution of WiBro and HSDPA

based on the experts’ answers and feedback.

3. Questionnaire

Table 2 is a questionnaire. As <Table 2> show, questionnaire consists of four parts.

Table 2 Questionnaire

1. Common questionnaire

(1) WiBro and HSDPA: Complementary goods vs Substitue goods

(2) Why the gap between two services’ subscribers is so big

(3) Necessity of co-evolution with WiBro and HSDPA in Korea

2. Service and Marketing side

(1) Killer application for WiBro and HSDPA

(2) Marketing side of WiBro and HSDPA

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(3) Joint Commodity helps coexistence of two markets?

(4) Do terminal device and contents shortage affect the WiBro market?

3. Political point of view

(1) Need to any policy change or lead to vitalize WiBro?

(2) Need to any policy change or lead to vitalize HSDPA?

(3) Need to any policy change or lead to vitalize both WiBro and HSDPA?

(4) Is it proper that other joint commodities like high-speed Internet+WiBro,

Mobile+Satellite DMB+Wibro, VoIP+DMB+WiBro should be deregeulated?

4. Technical point of view

(1) Are there any technological obstacles to enlarge coverage of WiBro to wide

area or national wide area?

(2) Do you think that aspect of technology is the critical factor that makes current

gap of the number of subscriber? And then, what kinds of technology?

(3) How do you expect the future that going to 4G from 3G in aspect of

technology?

IV. Analysis of data and discussion

1. Common questionnaire

(1) WiBro and HSDPA: Complementary goods vs. Substitute goods

The opinion of the experts was classified into a half-and-half even whether two

services were the complementary goods or the substitute goods. General reason for

opinions to complementary goods is that two services seek different characters. In other

words, WiBro is the service starting the wireless internet with a goal. As to HSDPA, the

video call of the voice communications base is the main purpose.

In the meantime, the reason of the experts which give an opinion to be the substitute

goods is that overlapping the service area of two services is dominating. In other words,

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two services are taken advantage of data and voice communications simultaneously.

Even though some experts supported complementary goods for two services, if WiBro

is available of voice communications, they agreed to change their opinions to substitute

goods.

When opinions were put together, if WiBro will make possible to voice

communications with a method including VoIP, and etc. in the future or if HSDPA will

show the appearance which is very active in data service, two services are expected to

be substitute goods.

(2) Why the gap between two services’ subscribers is so big

In July 2007, presently, WiBro subscribers are about 20,000 and HSDPA

subscribers are 1,200,000(KTF: 1,000,000, SKT: 200,000). The most of experts made

an opinion about the difference of the subscriber number is the active strategy of

marketing of HSDPA.

In other words, the necessity of HSDPA was informed consumers and it succeeds

for customers to purchase it. Partial experts counted the coverage limit of the WiBro

restricted to Seoul and part capital area. A fact, from the early 2007, KTF brandized

HSDPA to a name called SHOW and spread the active marketing. It kept the upward

movement in which thereafter the subscriber increment is steep. Moreover, as to

HSDPA, since the nationwide marketing was possible in the situation designing the

nationwide network, the active strategy of marketing could be chief. However, in case

of WiBro the network does not satisfy national wide and services are unstable. Those

make a burden to do active marketing in cost side and it would have limits to booster

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the necessity of WiBro to a customers.

In conclusion, most experts advised that it is not easy for WiBro to be guaranteed

like since having the limit of the upper part even if WiBro tries bench marketing the

strategy of marketing of KTF. The other point of view, this result can be nature the gap

between the new technology which is just commercialized and existing technology in

mature stage.

It is important that real HSDPA subscriber who uses the functions of 3G is not

1,200,000. Here in, from December 2003 commercialized WCDMA subscriber is

included. There are many users who does not use data service of HSDPA in which a

charge is imposed as the packet unit in fact. That is, the character of a service is 3G but

real service that a user of 3G use is not different from 2G.

In sum, it can be the numerical value in which it does not have the subscriber

difference of a now with meaning. This is furthermore like that understood with surface.

It is the hasty determination to show with assertion of dark WiBro

(3) Necessity of co-existence with WiBro and HSDPA in Korea

The opinion that the co- existence needs most of experts was given. Two services

have to exist as the bridging service to 4G. Co- existence is needed for 4G activations to

extend competition each other. The dissatisfaction including data or the charge of

HSDPA, and etc. is connected to the necessity of WiBro. This has been having the

developments each other. When it looked at in the position of Korea, the opinion is that

the activation of WiBro can increase the national interests to an advantage including the

export of technology, and etc.

Moreover, the expert of the part of technique said that the WCDMA which is the

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core technology of HSDPA have a limit to enhance data speed rate. In conclusion,

HSDPA could be the start point to HSOPA passing to HSUPA. For the step of HSOPA,

it will use OFDMA which is different technique with HSDPA. Therefore, the co-

existence technologically became the natural phenomenon. In sum, even though the part

overlapped in the service area has, the co- existence is necessary because merits and

demerits exist

2. Service and Marketing side

(1) Killer application for WiBro and HSDPA

① WiBro

First, opinion for the killer application for WiBro is divided into two parts, VoIP

and Wireless Internet at a cheap price. WiBro without voice service is a big obstacle to

secure subscriber. 66.2% of the people who have intention to use WiBro favors small

terminal with cell phone type3. If WiBro don’t provide voice service, it’s hard to attract

the customers finally. Experts agreed that VoIP can serve the good quality with low

price and if possible, WiBro equipped with VoIP gets more subscribers easily than

HSDPA. WiBro service providers actually tried to commercialize VoIP, and there is no

technological difficulty. But there is government pressure not to start business.

Another killer application suggested is multimedia service which is provided by

WiBro with low price. Especially, for downloading high-volume data such as UCC or

VoD, WiBro has absolutely competitive advantage in comparison with HSDPA. From

3 Korea research, ‘demand estimation of WiBro and customer survey for making business strategy’, 2004.9.

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now on, if WiBro can cover all over the nation, contents business for multimedia service

will be vitalized in earnest. It is expected that would be potential killer application of

WiBro.

② HSDPA

Most of the experts said video communication and global roaming service as the

killer application for HSDPA. But when considering case of Japan and current video

communication trend, it is doubtful that video communication might be real killer

application. It means that current top player, KTF, don’t have their own killer

application, and newly differentiated niche market based on WCDMA is required.

On the other side, opinions that global roaming service is killer application to drive

HSDPA market were dominant. The numbers of people traveling oversea exceed ten

million people.4 Global roaming service will be rising as Blue Ocean.

(2) Marketing side of WiBro and HSDPA

① WiBro

Recent marketing strategy for WiBro might be shown as passive tactics as compared

with HSDPA. It is caused by the coverage factor. Because current influential mass

media in Korea is based on the whole nation, there are lots of limitations to advertise for

WiBro on mass media to potential customers of Seoul and partial metropolitan are.

Table 3

Seoul and some

Metropolitan area

The other area

4 http://www.cbs.co.kr/Nocut/Show.asp?IDX=578057

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Known about WiBro (A) (B)

Unknown about WiBro (C) (D)

As shown in Table 3, advertising toward (A) section people has too little influence.

Because they already recognize the advantage of WiBro and it is highly possible that

quite a few subscribers exist amongst them. And advertising toward (B) section people

also is not effective. While people recognize WiBro, their location is out of the service

area.

But it is expected that advertising toward (c) section people can obtain the desired

results. They could recognize the value of WiBro newly and their location is service

area. These should be main target customer for advertising. And for (D), it is possible to

advertise toward them, but it’s hard to secure them as customers. These people might be

potential customer even if coverage expanded to their location. Therefore, current

limited coverage of WiBro is an obstacle for active marketing.

The best marketing strategy now is to maximize customer satisfaction in Seoul and

metropolitan area. After extending service coverage toward whole nation, active

marketing is possible with verbal marketing of existing WiBro users.

② HSDPA

As a result of the aggressive marketing, the number of subscriber of ‘SHOW’,

HSDPA brand of KTF, showed us the tremendous growth, and finally reached

1,000,000 users in July 2007. All experts said that current rapid growth of HSDPA

market is mainly caused by aggressive marketing. While KTF’s marketing keep going

now, HSDPA business of the Korean top mobile service provider SK Telecom wasn’t

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remarkable yet. It can be analyzed that the revenue of existing business is enough, and

the market profitability is invisible to hesitate about marketing investment. And there’s

another opinion that because SKT has the license for both HSDPA and WiBro, they are

judging the strategic time to market now with observing competitor, KT and KTF.

(3) Joint Commodity help co-existence of two markets?

Joint commodity is supposed to be suitable alternative to co-exist both WiBro and

HSDPA market. However, this part is linked with political part and deregulation would

be required. It will be dealt with later political point of view part in detail. For instance

of the joint commodity, there were lots of opinions like high-speed Internet+WiBro,

mobile+satellite DMB+WiBro, VoIP+DMB+WiBro, etc.

The development of terminal for joint commodity with WiBro+HSDPA is almost

completed. Therefore, such joint commodity is good alternative without big obstacles

with terminal or regulatory side. And there is another advantage to increase customer

welfare due to service price down and limitation to regulate the monopoly with

significant market power.

(4) Do terminal device and contents shortage affect the WiBro market?

Most of the experts said that contents shortage and delay of terminal device

provision may affect the number of subscribers of WiBro. Some people think that while

differentiated contents only for WiBro may insufficient, it isn’t a precondition due to

general-purpose characteristics of WiBro. But above two factors may affect the number

of subscriber and increasing of the number of subscribers finally make larger contents

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and terminal device. Therefore, a necessary and sufficient condition between

contents/terminal shortage and the number of subscribers was concluded.

3. Political point of view

(1) Need to any policy change or lead to vitalize WiBro?

The best method is that bandwidth of WiBro (2.3GHz) changes to global bandwidth

(2.5GHz). And then, it has benefits to import equipments or terminals in aspect of price.

It has also effects to eliminate the obstacles to enlarge the coverage. If it is impossible to

have global bandwidth, the another alternative is that assigned bandwidth as a 7.5GHz

in 2.3 GHz bandwidth reassign to 10MHz. This method also can reduce the cost to

import equipments or terminals, because some countries assigned as a 10MHz in

2.3GHz. After all, we don’t need to produce equipments or terminals through the huge

investment.

If this method that import equipments or terminals considered to undesirable way,

MIC, regulatory agency of Korea, should draft the new solution that can move up the

diffusion of the terminal. For example, supporting subsidy for terminal, or investing

some part of terminal development. Because users can hesitate to churn out their

familiar terminal by overseas firms now. It could delay Korea’s own terminal provision

and threaten national competitive power. And political strategy for vitalization of

WiBro market is required which leads to develop the technology evolution and such

original technology directly link with national interest.

(2) Need to any policy change or lead to vitalize HSDPA?

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To support HSDPA, current service plan is required to be down. It is expected that

the market will secure lots of subscribers by providing subsidy to reduce churning cost

and lowering the charge. And above all things, the marketing to customer is needed

continuously. Despite having HSDPA, it’s not comfortable to use HSDPA actually.

HSDPA service provider need to strongly appeal for the value of HSDPA to the

customers.

(3) Need to any policy change or lead to vitalize both WiBro and HSDPA?

Most experts said joint commodity between WiBro and HSDPA should be

approved. There are several advantages: customers can use more effective service on

where they want, and service provider can make up for the weak points for each other

and secure the subscribers. Such benefit enables them to develop other solution or

contents guarantee.

Table 4

Mobility is important Mobility is NOT important

Need to download

high-volume data

(A) (B)

No need to download high-

volume data

(C) (D)

(B) Section people will choose the WiBro in order to download high-volume data as

shown in Table 4. While it is moving at a high speed, customers need to see the UCC or

other multimedia service. And (C) type person will use HSDPA having superior

mobility without high-volume data. Simple messenger or internet surfing while moving

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at a high speed is the example.

On the other hand, in case of (A) or (D), both service is of no advantage certainly. If

technology development doesn’t precede, (A) case give downloading high-volume data

up and use HSDPA. Whilst OFDMA, core technology of WiBro, definitely superior for

downloading but it has weak mobility. And case of (D) also no service is of advantage,

but WiBro with relatively cheap price will be chosen.

Therefore, joint commodity between WiBro and HSDPA is really suitable solution

to co-exist by securing their own subscriber and balancing the market differentiation.

Indeed, there is no technological difficulty as mentioned before.

(4) Is it proper that other joint commodities like high-speed Internet+WiBro,

Mobile+Satellite DMB+Wibro, VoIP+DMB+WiBro should be deregulated?

Deregulation on above joint commodities is dominant. Even from foreign countries,

joint commodities are deregulating now. If Korea regulate this, it is possible to shrink

3G market towards 4g and finally to lead weaken National competitive power. It would

be very helpful to vitalize 3G or 3.5G with the regulation only to prevent monopoly of

the SMP (Significant Market Power) and the deregulation for other part. Also, such

deregulation could affect to cut down customer’s communication cost.

4. Technical point of view

(1) Are there any technological obstacles to enlarge coverage of WiBro to wide area or

national wide area?

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The most critical obstacle factor to enlarge coverage is that WiBro is the high

frequency bandwidth. That means coverage of base station is very narrow. Therefore, to

have national wide coverage, it requires many number of base stations compared with

HSDPA, so WiBro service providers that want have national wide coverage should

invest huge money. In the meanwhile, WiBro has been not assigned global frequency

bandwidth (2.5GHz). It means that a unit cost of equipment increase compared with

another service that uses global frequency bandwidth. Considering the payback period,

service providers hesitate, because the rental prices of base station and the cost of

construction are very high. After all, it is hard to invest at unreasonable area that has not

guarantee the return of the future. In other words, to enlarge coverage of WiBro is

lagging because of the aspect of economics of scale.

(2) Do you think that aspect of technology is the critical factor that makes current gap of

the number of subscriber? And then, what kinds of technology?

HSDPA has the national wide coverage, because network of WCDMA has been

covered to national wide at December 2003. However, WiBro should cover the new

network to service because of the feature of technology. Therefore, aspect of technology

make current gap of the number of subscriber in some sense.

The core technology of WiBro is the OFDMA technology. This technology can

improve to remarkable DL (Down-Link) speed, so it is promising as a core technology

of 4G. Nowadays, through the combination between OFDMA and MIMO, companies

such as Samsung Electronics and POSDATA trying to improve UP (Up-Link) speed.

However, the most critical shortcoming of this technology is that OFDMA technology

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has the weakness to mobility. Although the effort to improve this weakness, the

technology that can improve mobility have not been developed until now. Therefore, It

is very important factor to vitalize WiBro service whether notable technology has been

developed or not in this areas.

The core technology of HSDPA is the WCDMA technology. This technology has

the weakness to transmit high capacity data service, because WCDMA based on voice

service. And also, this technology has the limitation to improve the DL (Down-Link)

and UP (Up-Link) speed. Therefore, HSUPA (High Speed Uplink packet access) will be

introduced as an alternative plan to overcome UP (Up-Link) speed.

As we look into about technical aspects, the competitive advantages of technical parts

occur to competitive advantage in the market. After all, these things decide the success

and failure in the market.

(3) How do you expect the future that going to 4G from 3G in aspect of technology?

As we mentioned before, OFDMA technology is promising as a core technology of

4G. However, HSDPA also has a plan that intends to go to HSOPA (High Speed OFDM

packet access) through the HSUPA stage.

In aspect of having same core technology (OFDMA) between WiBro and HADPA,

another competition in each other will be occurred at the 4G market in the future.

However, the condition of competition will be different compared to current situation.

At that time, WiBro will secure the national wide coverage, because WiBro is trying to

enlarge their coverage according to their business plan. On the other hand, HSDPA will

face to insufficiency of coverage, because HSOPA, using the OFDMA technology,

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requires new network same with WiBro network. Therefore, at that time, WiBro will

have the leadership.

In conclusion, the possibility to co-exist between WiBro and HSDPA seems to very

high in current situation, because they have competitive advantages and disadvantages

each other. In the 4G era, although their situation will be change in aspect of the

leadership, they also will co-exist considering their precedent.

V. Summary and Limitations

1. Summary

We looked into the method to co-exist between WiBro and HSDPA in the Korean

mobile Internet market in aspects of service & marketing, policy, and technology.

In common questionnaire part, although there are some argue, WiBro and HSDPA

have both complementary and substitute relationship side. Therefore, to find each killer

application is very important issue. And also, co- existence between WiBro and HSDPA

is needed for 4G activations to extend competition each other.

In service and marketing side, killer application of WiBro is combining with VoIP

service and multimedia service such as UCC or VOD. In the meanwhile, killer

application of HSDPA is global roaming service. And, suitable co-existence plan is a

joint commodity like high-speed Internet+WiBro, mobile+satellite DMB+WiBro,

VoIP+DMB+WiBro, etc.

In political point of view, deregulation on above joint commodities is dominant. If

Korea regulate this, it is possible to shrink 3G market towards 4g and finally to lead

weaken National competitive power

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In technical point of view, aspect of technology make current gap of the number of

subscriber in some sense. And, the competitive advantages of technical parts occur to

competitive advantage in the market. And also, the possibility to co-exist between

WiBro and HSDPA seems to very high in current situation, because they have

competitive advantages and disadvantages each other.

In conclusion, Joint commodity is the solution as an alternative plan to co-exist

between WiBro and HSDPA. This solution also satisfies customer’s needs and increase

customer’s welfare, because it can decrease the burden of cost to customers. There are

two methods to combine joint commodity. One thing is combining between WiBro and

HSDPA. And, the other thing is combining between WiBro and other service such as

VDSL, satellite DMB, or VoIP besides of HSDPA.

In aspect of technology, co-existence between WiBro and HSDPA considered to a

natural result as a developing of technology.

2. Limitations

Besides of service & marketing, policy, and technology aspects, it seems to require

other aspects such as contents and distribution network, terminal, or network. And then,

we can examine more specifically about the solution of co-exist. Also, if we can prepare

questionnaire in more various direction, we guess we could find new solutions.

The number of expert and diversity of expert also require getting the new or other

solutions. And, after interview, if we increase the number of feedback, also we could get

the more exact and specific results.

The lasting thing is the survey. If we survey to current user of WiBro and HSDPA, we

could get more real solutions. This is the subject in the future.

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Page 24: Market Analysis and Activation plan of WiBro in Korea

References

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[2] Sang-Sup Cho and Sun Young Park, “The Comparative Economic Value Analysis

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Environment,” KISDI, Vol 12, Number 2, June 2005, pp.101~121.

[3] Seung Hee Oh, Sanghyeok Park, and Namjae Cho, “Relationship between Business

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[4] Jaemin Jung, Whajin Lee, and Young-Ju Kim, ”Media Competition and

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Page 25: Market Analysis and Activation plan of WiBro in Korea

[5] Chae-Hwan Kim, “ A Study of DMB and Broadcast Media Competition Relations

on Niche Analysis,” Korean Association for Broadcasting & Telecommunication

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[6] Ahn Jae Hyun et al., “Customer Preference Analysis of Next Generation Mobile

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[7] Bang Young Suk et al., “The Present Motive and Optimal Price of Joint Commodity

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[8] Moon-Koo Kim and Jong-Hyun Park, “The Study of Influence Factor to Raise Use

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Management Information System, 2006, pp.790~800.

[9] Moon-Koo Kim and Kyoung-yong Jee, “Characteristics of Individuals Influencing

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February 2006.

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