"In order to exploit the blue ocean market of next-generation service Wideband CDMA and HSDPA (High Speed Downlink Packet Access), this year we will invest about 300 billion won in expanding our wireless data service coverage to 17 cities in the metropolitan area" said Cho Young-Chu, President and CEO of KTF in a recent media interview. He added, "Next year we will continue to invest 350 billion won in HSDPA, which is expected be commercialized in March, 2006, extending our service coverage to the whole nation, and consequently redoubling KTF's capability in the wireless mobile communications." The following is a summary of his explanation and the goals set by KTF in this regard. Since the introduction of mobile number portability (MNP) in 2004, the mobile communication service providers are trying to maintain a clean marketing policy instead of wasteful and overheated competition in the past. Putting more emphasis on competing in their service charges, terminal production, and communication quality on the one hand, they will step up activation and acceleration of wireless data services in an effort to establish the foundation of their profit sources on the other hand. In particular, to realize the company goal, "Number One KTF," KTF will make every effort to lay the foundation for its vision in the second half of 2005. To this end, KTF will further strengthen a phone navigation service called "K. Ways" and a 3-D mobile game "GPANG." K. Ways has been launched in the first half of this year, and it is now leading the market, thus making great contribution to the sales expansion. Striving to offer more cutting-edge services for customers, KTF will put emphasis on creating a "blue ocean service." For this purpose it will build a mutually beneficial and cooperative partnership with other leading companies. Expansion of Wireless Data Revenue to 20 percent by 2007 By strengthening its wireless data services, KTF plans to increase the revenue of wireless data from 10 percent at present to 20 percent by 2007. In particular, it will continue to exploit a new source of profit through boosting entertainment contents such as games, music, and video, while on the other hand expanding "non-traffic" profit models such as contents sale, distribution, and license fee. Currently, KTF is establishing an optimal alliance and cooperation with its business partners through joint investment or equity participation. Moreover, in order to raise a synergy effect for KT group, the three companies -- KT, KTF, and KTH -- have organized a "Contents Conference," thus implementing the policy of joint production, purchase, and usage of contents. Also, it is pushing ahead with market expansion and joint growth strategy with many players in the contents industry through strategic alliance with them. Last June, KTF has invested 8 billion won in the video fund managed by Showbox Inc. Along with the strategic alliance with major players in the music business, it is jointly investing in the game business with the leading companies in this field including CJ Internet and NHN. Strategy to Create Blue Ocean 'WCDMA and WIBRO' At present, global leaders in the mobile communications field are waging fierce competition to take the lead in providing Wideband CDMA (WCDMA) service. To cope with this global trend, KTF is aggressively making efforts to establish a WCDMA network, thus selecting business partners for network building, planning to complete its service coverage for 17 cities in the Seoul metropolitan area this year, and gradually expanding it to 45 cities nationwide by the end of 2006. Both KT and KTF expect that the WCDMA and WIBRO will play a critical role in securing leadership in the wireless multimedia market.