KT to Allow Free Internet Phone Calls

As reported in the Korea Herald today, Korea Telecom announced that it will allow free internet phone calls from its mobile handsets. KT said it will introduce a plan which enables both traditional cell phone services and Wi-Fi connections for free internet phone calls. According to a statement, the company sees wireless internet as a growth engine for the future. Telecom companies in Korea have been reluctant to promote internet phone calls for fear that they would cut into revenues. Indeed, KT estimates that the move could initially slash its revenues. It expects a 35 percent reduction in fees for cell phone calls and an 88 percent drop in data transaction fees. However, the new service will be limited to three designated smartphone models.

The Imminent Mobile Internet Revolution in Korea

There is more information to add to my earlier posts on the rapidly approaching shakeup in Korea's mobile market.  A recent article in the Korea Herald highlighted some of these points.   It began by noting that only 10 percent of Korea's mobile phone users currently subscribe to a fixed rate data plan for mobile internet, compared with larger percentages in other advanced countries, as shown in the graphic (click the graphic for a full-size version).  Not surprisingly, revenues from data services in all those other countries are significantly higher than in Korea. The main reason for Korea's low percentage of data-service use, in a country where everyone carries an internet-capable 3G phone is, of course, the outrageously high rates charged for data services.  Also, smartphones make up only 1 percent of total handset sales (I must confess that I didn't realize it was this low!)   All of this while the iPhone, along with the Blackberry and other smartphones have enjoyed booming popularity around the world for the past two years or more.

In the Korea Herald Article, analysts claim that the iPhone will create a breakthrough in Korea's wireless internet services.  One is even quoted as saying that the iPhone will bring about a paradigm shift that will lead to a better telecommunications environment for consumers.  I would simply note that the paradigm shift is well underway all over the world, and it involves not only Apple's iPhone but most notably the Google-supported, open source Android platform, and of course Symbian which continues to lead the world in smart-phone market share.   As noted in my previous post, Android is predicted to move ahead of the iPhone by 2012.

A final thought:  although this post focuses on mobile internet, the continued rapid convergence of digital media means that it has ramifications for converged services in the "ubiquitous network" era that is rapidly approaching.  Mobile handsets, after all, promise to be the key device in that era, providing users with services based on increased ambient intelligence in Korea's cities, towns and even rural fishing and farming villages.

Android to Overtake iPhone in Worldwide Mobile Market

Finally a colleague sent me the study I've been waiting to see.  According to a new Gartner forecast reported by Register Hardware, Android will have more than quadrupled its market share by 2012.  Its market share stood at only 1.9 percent in the first quarter of 2009, but will grow to 14.5 percent by the final quarter of 2012.  This would move Android from the sixth most popular operating system for smartphones to the second most popular, following Symbian.  The main reason for this market share growth is because, unlike Apple, Google licenses their OS to multiple original equipment manufacturers (OEMs).

If this projection is even close to accurate it holds huge implications for the mobile communications market here in Korea, which is on the verge of a major transition to mobile handsets capable of surfing the web (all of it!) with a host of new services and content appearing in the process.  Not all of the services and content will be "made in Korea," but a flood of new applications should strengthen, not weaken, South Korea's mobile content, services and software sector.  If all works out well, 2012 should be very interesting, with gigabit per second internet service in major cities and much faster mobile broadband.