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Nokia, Sony Ericsson Eyeing Korean 3G Mobile Phone Market

2006/08/30 By Kim Won-seok

Global mobile phone heavyweights such as Nokia and Sony Ericsson are now keen to expand into the Korean 3G mobile (WCDMA and HSDPA) market. Yet, they still face a major barrier of the country¡¯s wireless Internet standard `Wi-Pi`

The world¡¯s first and fourth largest mobile phone companies are now tapping into deals with local wireless operators like SK Telecom and KTF, aiming to jump into competition in Korea.

The multinational firms are seeking to provide single band single mode phones without changes in platforms and software so as to save initial costs. SK Telecom and KTF are in talks with these mobile phone companies, which they expect to help reinforce the lineups of handsets.

Nokia withdrew from the Korean CDMA phone market in 2003, and is gearing up to re-enter the market in 4 years.

The company accounts for 33% of the world market, and is also the No. 1 provider of asynchronous 3G handset. The company¡¯s expansion into the market will most likely change the landscape significantly.

Sony Ericsson, which successfully launched `Walkman Phone,` is also tapping into a deal with a local wireless operator via Sony.

"We are willing to talk with all the mobile phone companies including Nokia and Sony Ericsson," said a manager of SK Telecom, hinting that it may sell 3G phones made by multinational vendors.

Industry observers point out, however, that the country¡¯s wireless Internet platform `Wi-Pi` remains a stumbling block to their expansion. Nokia has been using smart phone operating system Symbian `Series 60,` and will not likely adopt `Wi-Pi` for business in Korea.

"SBSM handsets without Wi-Pi can still offer global roaming," said an industry observer. "We doubt the mobile phone company will offer a platform that suits the local environment."

¡°We are talking with Nokia on Wi-Pi and other features such as DMB,¡± said a manager at KTF.




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