By Kim Yoo-chul
LG Uplus, the nation's No. 3 mobile carrier, is planning to cut its investment on the tri-band LTE-Advanced (LTE-A) networks as the LG Group's telecommunications affiliate intends to offer more enhancements to its existing and potential clients.
"LG Uplus earlier planned to build up the tri-band LTE-A across the country. However, this will heavily cost us. We believe very few customers could feel a difference between LTE-A and tri-band LTE-A. Uplus will try hard to provide more enhancements to our existing clients by saving costs," said an LG official, Monday.
As the nation's telecom regulator puts a subsidy cap provided by telecom operators to consumers in order to entice more clients, the nation's three major carriers ― SK Telecom, KT and Uplus ― have suddenly shifted their focus on promoting the tri-band LTE-A service.
For example, SK Telecom said its tri-band LTE-A service is four times faster than existing LTE-A and 21 times faster than 3G. At peak speed, tri-band LTE-A allows users to download a 1-gigabyte movie in just 28 seconds.
KT and SK Telecom have gotten into legal disputes over SK's alleged announcement to commercialize the tri-band LTE-A service. But some critics say this tussle was a highly organized tactic in order to boost more recognition for tri-band LTE-A.
"Under the new subsidy cap, mobile carriers can't offer a heavy amount of subsidies for customers. Telecom companies seek to secure their bottom line by promoting that tri-band LTE-A is totally new and innovative. How many consumers can benefit from using the tri-band LTE-A? Tri-band LTE-A is deceptive marketing," said an official at the Ministry of Science, ICT and Future Planning.
Samsung Electronics and LG Electronics plan to release their new line of mobile devices embedded with tri-band LTE-A service but only in Korea. Less than 20,000 units of LG's G-Flex tri-band LTE-A devices have been sold.
Official say demand for tri-band LTE-A will be limited.
"This is very complex issue. The competition for tri-band LTE-A between local carriers means that Korea can get initiatives in the race for next-generation telecom service in the long-term. But the ongoing rivalry will offer limited benefits to consumers," said the official.
The updated business plan by LG Uplus could dampen its alliance with Huawei Technology of China as Uplus is dependent upon Huawei's wireless equipment for the development of ultra-fast telecom networks, including the tri-band LTE-A.
A KT official declined to comment whether it will continue investing for an expanded coverage of tri-band LTE-A network. SK Telecom said any decisions will be coming out according to market situations.
LG Uplus, the nation's No. 3 mobile carrier, is planning to cut its investment on the tri-band LTE-Advanced (LTE-A) networks as the LG Group's telecommunications affiliate intends to offer more enhancements to its existing and potential clients.
"LG Uplus earlier planned to build up the tri-band LTE-A across the country. However, this will heavily cost us. We believe very few customers could feel a difference between LTE-A and tri-band LTE-A. Uplus will try hard to provide more enhancements to our existing clients by saving costs," said an LG official, Monday.
As the nation's telecom regulator puts a subsidy cap provided by telecom operators to consumers in order to entice more clients, the nation's three major carriers ― SK Telecom, KT and Uplus ― have suddenly shifted their focus on promoting the tri-band LTE-A service.
For example, SK Telecom said its tri-band LTE-A service is four times faster than existing LTE-A and 21 times faster than 3G. At peak speed, tri-band LTE-A allows users to download a 1-gigabyte movie in just 28 seconds.
KT and SK Telecom have gotten into legal disputes over SK's alleged announcement to commercialize the tri-band LTE-A service. But some critics say this tussle was a highly organized tactic in order to boost more recognition for tri-band LTE-A.
"Under the new subsidy cap, mobile carriers can't offer a heavy amount of subsidies for customers. Telecom companies seek to secure their bottom line by promoting that tri-band LTE-A is totally new and innovative. How many consumers can benefit from using the tri-band LTE-A? Tri-band LTE-A is deceptive marketing," said an official at the Ministry of Science, ICT and Future Planning.
Samsung Electronics and LG Electronics plan to release their new line of mobile devices embedded with tri-band LTE-A service but only in Korea. Less than 20,000 units of LG's G-Flex tri-band LTE-A devices have been sold.
Official say demand for tri-band LTE-A will be limited.
"This is very complex issue. The competition for tri-band LTE-A between local carriers means that Korea can get initiatives in the race for next-generation telecom service in the long-term. But the ongoing rivalry will offer limited benefits to consumers," said the official.
The updated business plan by LG Uplus could dampen its alliance with Huawei Technology of China as Uplus is dependent upon Huawei's wireless equipment for the development of ultra-fast telecom networks, including the tri-band LTE-A.
A KT official declined to comment whether it will continue investing for an expanded coverage of tri-band LTE-A network. SK Telecom said any decisions will be coming out according to market situations.
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