Even though government hopes to promote WiBro, the Korean version of mobile WiMAX, to lessen the burden for consumers and drive growth in Korea’s information technology industry, it seems that WiBro's future is in question.
The Korea Communications Commission (KCC), the country's broadcasting and telecommunications regulator, proposed new ideas for boosting the WiBro service, such as allowing voice calls on WiBro-enabled devices and requiring a number for using the service, as in mobile phones. The KCC expects these offerings will increase local demand of WiBro service to 1 million subscribers by 2011. As of December 2008, KT counted 180,000 WiBro subscribers, while SK Telecom had 11,000.
WiBro was depending on cable television operators to expand availability of the service as a way of expanding beyond a saturated pay-TV market. But cable providers are thinking twice because of the initial upfront investment required. These operators also need a massive investment to change current analog system to digital to compete the newly started IPTV service.
Incumbent WiBro operators KT and SK Telecom also have hesitated to expand WiBro network. SK Telecom has worried that voice calling on WiBro will cannibalize its mobile business. The WiBro front-runner KT is also reluctant to inroad for fear of affecting its affiliate KTF wireless business, and the two companies may merge later this year.
For KT and SK Telecom, voice calling on WiBro is not an urgent issue and the need for cable operators to enter the telecom market may not materialize in a short time, Jong-in Yang, analyst of Korea Investment & Securities said in a recent report.
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