SK Telecom, Samsung Join Hands for 3G Promotion
By Cho Jin-seo
Staff Reporter
SK Telecom has asked for reinforcement from its closest ally Samsung Electronics to catch up with KTF in the third-generation mobile service competition.
Samsung will provide eight more W-CDMA phone models to SK Telecom by December, increasing the total number from five to 13. Joint promotion campaigns are to be launched as well, the two firms said.
It is an unusual decision for a handset maker to give full support to one mobile service company, as such action can irritate other mobile service firms. Although SK Telecom is the biggest buyer of Samsung handsets, KTF and LG Telecom also buy millions of them every year.
``SK Telecom has become active in expanding the W-CDMA market in the second half of the year, so having competitive handsets is now a crucial issue in the competition. So we decided to work together,'' an SK Telecom official said.
SK Telecom is the largest mobile service provider in South Korea. But has been lagging behind KTF, the No. 2, in the third-generation subscription using the W-CDMA network.
SK Telecom and KTF introduced the W-CDMA services in March under the name of 3G. Analysts say 3G phones in general offer faster Internet services and clearer images on video calls than 2G (CDMA) phones, which are still used by most South Koreans.
KTF has made all-out efforts in its 3G service ``Show'' because it believes it is the only way to overcome the market leader SK Telecom in the saturated market. The result has been encouraging so far. In August, KTF recorded more than 1.67 million 3G subscribers, against SK Telecom's 804,098.
Though it had a sluggish start, SK Telecom recently got more serious in the 3G business. It aired TV commercials during prime times. Together with Samsung Electronics, it is also holding a lottery for new customers until October with generous prizes such as Samsung laptop PCs and trips to Southeast Asia.
KTF didn't seem too concerned about SK Telecom's strategic shift, encouraging its competitor at least in public to do more 3G promotions, hoping that the competition between the two firms will enhance customers' awareness on 3G services.
SK Telecom is still far ahead of KTF in their total subscribers. It had 21.46 million customers as of August 31, and KTF had 13.53 million. LG Telecom, the smallest of the three, had 7.52 million users.