Mobile phone industry in South Korea

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The mobile phone industry in South Korea consists of domestic network infrastructure provision and the production of consumer mobile handsets.

Contents

History

Car phone era

In 1984, Korea Mobile Telecommunications Service, Korea Telecom's subsidiary which later became SK Telecom, started its mobile communications service with the car phone.[ citation needed ]

Mobile phone era

Consumer devices

Network and service developments

Smartphone era

Consumer devices

In 2009 KT was the first network to introduce the iPhone. [4] The origins of South Korea's domestic smartphone production industry can be traced to Samsung's release of their first smartphone, a reaction to Apple's iPhone, which was well-received by the South Korean population.[ citation needed ]

Later, as the smartphone sector kept growing, South Korean LG Electronics also participated in this competition. Compared to Apple and Samsung, LG had a different business strategy, which was to make devices with lower price and better functionality rather than with high specs; however, as LG started focus on better camera functions and screen quality with better pixel, their cost of goods started to increase but the sales was not so much improved. [5]

As the result of continuing net loss in smart phone business, LG announced its decision to exit this area in April, 2021. Up until this time, Apple and Samsung has remained the two companies with the largest market shares, and LG had only cornered a small portion of market. Apple knew this event was a chance to increase their sales in South Korea and tried to take this opportunity by renting LG’s display spaces in markets. [6] [7] Samsung also acted by trying to tempt LG smartphone users by offering them good deals on their new Samsung phones, for example, by running trade-in events for used LG smartphones.[ citation needed ] Competition between the two manufacuters in the South Korean market is still on-going.[ citation needed ]

Network and service developments

  • 2009, KTF was merged with Korea Telecom.
  • 2010, LG Telecom, LG Dacom, LG Powercom were merged into LG U Plus.
  • 2012, KT shut down its 2G services and migrated to 3G network.
  • 2020, SKT shut down its 2G services and migrated to newer generation networks.
  • new technology was developed such as WiBro and LTE [ citation needed ]

Handsets

Domestic production

Current South Korean producers of mobile phones include:

Former South Korean producers of mobile phones include:

Market share (domestic and imported handsets)

Samsung and Apple have the largest market shares in Korea.[ citation needed ]

Mobile phone service providers

There are three mobile phone service providers and they are currently deploying their 5G networks.

As of 2004 the market shares of the three companies were believed to be: SK Telecom's 50 percent, Korea Telecom's 30 percent and LG Telecom's 20 percent. [10]

Official bodies and technical partnerships

In South Korea, the Ministry of Information and Communication (MIC) is the telecommunications authority.

The Electronics and Telecommunications Research Institute (ETRI) supports Qualcomm's research and development of CDMA and CDMA2000 technology.

Regarding the Korean mobile phone industry's overseas experiences, SK Telecom has helped the first mobile phone service companies in Mongolia, Uzbekistan, Cambodia, etc. In China, it helped China Unicom's CDMA implementation, both technically and financially.[ citation needed ]

See also

Related Research Articles

The Universal Mobile Telecommunications System (UMTS) is a third generation mobile cellular system for networks based on the GSM standard. Developed and maintained by the 3GPP, UMTS is a component of the International Telecommunication Union IMT-2000 standard set and compares with the CDMA2000 standard set for networks based on the competing cdmaOne technology. UMTS uses wideband code-division multiple access (W-CDMA) radio access technology to offer greater spectral efficiency and bandwidth to mobile network operators.

<span class="mw-page-title-main">3G</span> Third generation of wireless mobile telecommunications technology

3G is the third generation of wireless mobile telecommunications technology. It is the upgrade over 2G, 2.5G, GPRS and 2.75G Enhanced Data Rates for GSM Evolution networks, offering faster data transfer, and better voice quality. This network was superseded by 4G, and later on by 5G. This network is based on a set of standards used for mobile devices and mobile telecommunications use services and networks that comply with the International Mobile Telecommunications-2000 (IMT-2000) specifications by the International Telecommunication Union. 3G finds application in wireless voice telephony, mobile Internet access, fixed wireless Internet access, video calls and mobile TV.

<span class="mw-page-title-main">SK Telecom</span> South Korean telecommunications company

SK Telecom Co., Ltd., abbreviated as SKT is a South Korean wireless telecommunications operator and former film distributor and is part of the SK Group, one of the country's largest chaebols. It leads the local market with 50.5 percent share as of 2008. SK Telecom is the largest wireless carrier in South Korea, with 27.019 million subscribers as of Q4 2017.

4G is the fourth generation of broadband cellular network technology, succeeding 3G and preceding 5G. A 4G system must provide capabilities defined by ITU in IMT Advanced. Potential and current applications include amended mobile web access, IP telephony, gaming services, high-definition mobile TV, video conferencing, and 3D television.

<span class="mw-page-title-main">WiBro</span> Wireless broadband Internet technology

WiBro is a wireless broadband Internet technology developed by the South Korean telecoms industry. WiBro is the South Korean service name for IEEE 802.16e international standard. By the end of 2012, the Korean Communications Commission intends to increase WiBro broadband connection speeds to 10Mbit/s, around ten times the 2009 speed, which will complement their 1Gbit/s fibre-optic network. The WiBro networks were shut down at the end of 2018.

Pantech Inc. is a South Korean company that manufactures mobile phones. Established in 1991, its market is mainly domestic with partners in the United States, Japan, China, Europe and Vietnam. In 2012 Pantech was the second best-selling handset maker in South Korea, according to Gartner. In 2013 Samsung Electronics bought a 10% stake in Pantech. Pantech also partners with PCD for specialized phones.

KT Freetel Co., Ltd. was a South Korean telecommunications firm, now merged into Korea Telecom, specializing in cellular, or mobile, phones. Since 1999, it has also developed extensive overseas operations. The company is credited with developing customized ring back tones. On 1 June 2009, KTF was merged with KT.

Anycall was a South Korean mobile phone brand established by Samsung Electronics in 1993. It was once the most popular mobile phone brand in the country, having been the leader since 1995. Samsung mobile phones were sold through the Anycall brand in South Korea and the greater China region prior to 2011. The brand was eventually retired during the 2010s when it only remained in use for feature phone.

<span class="mw-page-title-main">KT Corporation</span> South Korean telecommunication service provider

KT Corporation, formerly Korea Telecom, is a South Korean telecommunications company. KT is the second-largest wireless carrier in South Korea, with 16.493 million subscribers as of Q4 2017.

LG Uplus Corp. (Korean: LG유플러스; stylized as LG U+, KRX: 032640) is a South Korean mobile network operator owned by LG Corporation. It was formerly known as LG Telecom, but changed to its current name on July 1, 2010. LG Uplus is the third-largest wireless carrier in South Korea, with 16.652 million subscribers as of Q4 2020.

<span class="mw-page-title-main">LG Cyon</span>

CYON was LG Electronics's mobile phone brand for the domestic South Korean market. LG established the brand in 1997. It was used until 2011, when LG Electronics retired the Cyon brand and all new mobile phones were rebranded as LG.

Samsung Mobile Division is one of the five divisions within Samsung Electronics, belonging to the Samsung Group, and consists of the Mobile Communications Division, Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile Solution Centre, and Telecommunication R&D Centre. Telecommunication Business produces a full spectrum of products from mobiles and other mobile devices such as MP3 players and laptop computers to telecommunication network infrastructure. The headquarters is located in Suwon, South Korea.

<span class="mw-page-title-main">LTE (telecommunication)</span> Standard for wireless broadband communication for mobile devices

In telecommunications, long-term evolution (LTE) is a standard for wireless broadband communication for mobile devices and data terminals, based on the GSM/EDGE and UMTS/HSPA standards. It improves on those standards' capacity and speed by using a different radio interface and core network improvements. LTE is the upgrade path for carriers with both GSM/UMTS networks and CDMA2000 networks. Because LTE frequencies and bands differ from country to country, only multi-band phones can use LTE in all countries where it is supported.

<span class="mw-page-title-main">Mobile phone industry in China</span>

China's mobile phone industry or cell phone industry has high growth rate, raising its share on the global mobile phone market. During 2007, 600 million mobile phones were made in China which accounted for over 25 percent of the global production. China is the largest market in terms of mobile phone subscribers.

International Mobile Telecommunications-Advanced are the requirements issued by the ITU Radiocommunication Sector (ITU-R) of the International Telecommunication Union (ITU) in 2008 for what is marketed as 4G mobile phone and Internet access service.

<span class="mw-page-title-main">Mobile phone industry in Japan</span>

The Japanese mobile phone industry is one of the most advanced in the world. As of March, 2022 there were 199.99 million mobile contracts in Japan according to the Ministry of Internal Affairs and Communications. This is 158 percent of Japan's total population.

3G mobile telephony was relatively slow to be adopted globally. In some instances, 3G networks do not use the same radio frequencies as 2G so mobile operators must build entirely new networks and license entirely new frequencies, especially so to achieve high data transmission rates. Other delays were due to the expenses of upgrading transmission hardware, especially for UMTS, whose deployment required the replacement of most broadcast towers. Due to these issues and difficulties with deployment, many carriers delayed acquisition of these updated capabilities.

<span class="mw-page-title-main">Voice over LTE</span> High-speed wireless communication functionality

Voice over LTE (VoLTE) is an LTE high-speed wireless communication standard for voice calls using mobile phones and data terminals. VoLTE has up to three times more voice and data capacity than older 3G UMTS and up to six times more than 2G GSM. It uses less bandwidth because VoLTE's packet headers are smaller than those of unoptimized VoIP/LTE. VoLTE calls are usually charged at the same rate as other calls.

References

  1. History of SK Telecom Archived 2010-03-15 at the Wayback Machine
  2. Korea Telecom - Company - History
  3. LG Telecom - About LG telecom - Milestones Archived 2011-07-13 at archive.today
  4. Katz, Leslie (November 29, 2009). "iPhone officially lands in South Korea". CNET. Archived from the original on September 20, 2020. Retrieved August 11, 2015.
  5. Schuhmacher, Alexander (2014-12-14), Can Innovation Still Be the Main Growth Driver of the Pharmaceutical Industry?, Perspectives on Sustainable Growth, Cham: Springer International Publishing, pp. 39–68, doi:10.1007/978-3-319-12526-8_2, ISBN   978-3-319-12525-1, S2CID   166817557 , retrieved 2021-12-11
  6. Park, Yuri; Koo, Yoonmo (April 2016). "An empirical analysis of switching cost in the smartphone market in South Korea". Telecommunications Policy. 40 (4): 307–318. doi:10.1016/j.telpol.2016.01.004. ISSN   0308-5961.
  7. Kim, Pyungho (July 2011). "The Apple iPhone Shock in Korea". The Information Society. 27 (4): 261–268. doi:10.1080/01972243.2011.583826. ISSN   0197-2243. S2CID   5212833.
  8. "Pantech to close smartphone business". Yonhap News Agency. 12 May 2017. Retrieved 22 August 2023.
  9. "LG to pull out of mobile phone market". The Guardian. 2021-04-05. Retrieved 22 August 2023.
  10. Three Korean mobile phone service providers (in Japanese, 2004)