SEOUL,KOREA---Internet Space Time (IST) and the Korean Mobile Internet (KMI) have finished procedures to acquire rights to a new mobile communication business. By the middle of next month the outline of the fourth mobile carrier following the established three will become visible. IST and KMI, which threw their hat into the ring of mobile carrier business, revealed that they wanted to shake up the sluggish Korean mobile communication market by providing brand new services that have not yet existed. Both companies have set up a plan to provide voice and data services based on WiBro, consequently knocking down the three company dynasty in the mobile communication market.
IST opens up an era of the service based web 3.0
IST, which the Hyundai Group and many middle and small companies are taking a key role in, had submitted applications for communication services and frequency allocation to the Korea Communications Commission on the 18th. Because of the postponing of the market application, there were various rumors such as “IST is having trouble attracting investors” or ‘the consortium is in trouble and they are about to collapse.” But IST showed them by leaping into the market competition with an estimated capital of 700 billion won.
IST consists of the Korean Federation of Small and Medium-sized Businesses and SB mobile; a special purpose company (SPC) founded by the small and medium-sized businesses, as its first stockholders, and the Hyundai Group and Samsung Electronics (investment in kind) as its major stockholders. IST also explained that they have also secured capital from the Middle East. The head of the company is Yang Seung-tek a former Minister of Information and Communication. President Yang emphasized, “We will realized a real 4G mobile communications service and open up a web 3.0 era where the users are the center of the service.”
IST will build a 320Mbps rated WiBro-Advance system by the 4th quarter of next year in the capital area and in the 6 biggest metropolitan cities in Korea, and is planning to provide a voice data communications services. Next, their goal is to expand their service area to 82 cities in Korea and finalize their nationwide network by 2014.
KMI will reach profits in 4 years
Already their third attempt, KMI had finished their preparations rather earlier than IST. The only problem they had faced was a lack of capital financing by their major stockholders, they have focused on fixing that problem. Many parties participated as stockholders such as major companies in the top 30s, middle and small sized companies, and cooperative consortiums with educational organizations. Dongbu, CNI and Samsung Electronics (Investment in kind) are known as the major stockholders and the initial capital is KRW 630billion.
KMI recruited Bang Seuk-hyun, former head of the Korea Information Society Development Institute as their new head. President Bang upon submitting their application for a mobile communication license said, “With network investment and a differentiated marketing strategy, we will be able to reach profits in 4 years.”
KMI will start their service in 82 cities in October of next year and will expand their network to rural areas by October the year after the next. KMI is special in that they are adopting the Mobile Virtual Network Operators (MVNO) system. They will remain as a business specialized in communications network systems, and the major stockholders will attract new members to the MVNO.
