KT forms alliance with Jeju

By Kim Yoo-chul

JEJU ISLAND ― KT, the nation’s top telecommunications company, has formed a strategic alliance with South Korea’s southern resort island of Jeju to help the island be named as one of the New7Wonders of Nature.

Jeju is one of 28 finalists competing for the crown. Other rivals include the Great Barrier Reef, the Galapagos Islands and Mount Kilimanjaro. The final selection will be announced November.

In support KT has finished installing mobile Wi-Fi services along major streets and key tourist attractions on Jeju with an investment of some 19 billion won.

KT insisted that the partnership with the island is part of its nationwide construction of WiBro 4G networks.

It has already built up a variant of its mobile Wi-Fi service called WiBro in 82 regional cities to respond to the growing demand for mobile wireless data in the era of smart devices.

``The number of visitors to the island by the end of the year will exceed 10 million from 7.5 million in 2010. Amid the rise, KT will provide advanced mobile wireless data services and that will also help Jeju be designated as one of the New7Wonders,’’ said Pyo Hyun-myung, president of KT’s mobile business unit, in a press conference here Tuesday.

The executive said its Olleh Wi-Fi wireless services will cover 95 percent of Jeju’s popular tourist attractions and main streets by the end of next month.

``With the support of Jeju Special Self-Governing Province, KT will provide free Wi-Fi services in rental cars and buses,’’ Pyo told reporters. KT has a plan to set up mobile call centers, here.

Pyo, a top confidant of KT Chairman Lee Suk-chae, previously helped KT strike the iPhone deal with Apple for the first time for a local mobile carrier.

He stressed Wi-Fi has been emerging as a key initiative for network infra and also expects good returns.

In a statement, KT said it is planning to expand the number of its Wi-Fi hotspots on the island to 1,500 from 900 this year as a follow-up measure to strengthen its Wi-Fi capability.

It is planning to expand tie-ups with local provincial governments to increase its cost-effective Wi-Fi services and help tourists have better access to the Internet.

``We are keen, however, follow-up measures will come if we see what we call `satisfactory results’ for the partnership with Jeju,’’ Pyo said.

When asked about commercializing its long-term evolution (LTE) wireless services, which are considered next-generation telecommunication technology Pyo said, ``KT will start an LTE service within this year and handsets that support LTE services are being prepared.’’

KT is vigorously pushing its 3W (WiBro, Wi-Fi and WCDMA) strategy as it believes the heavy data traffic mainly because of the firm demand for data-intensive smartphones is revitalizing the once-questioned business strategy.

Progress over iPhone 5 deal

KT, the first Korean partner with Apple, is seeing progress on introducing Apple’s next iPhone as the nation’s second-biggest mobile carrier hopes to continue the so-called ``iPhone boom’’ amid the steady demand.

KT has sold over 2 million iPhones after introducing the 3GS iPhone in November 2009.

``Talks have started. KT has grabbed the bargaining power whether to release the upcoming iPhone,’’ Pyo told The Korea Times, separately.

KT was thought to be introducing the fifth-generation iPhone on local shelves from June.

But the executive declined to comment further. Steve Park, a local Apple representative was silent on the deal.

``The one thing I can say is that the local tablet PC is now on an expansionary track and smartphones are as well,’’ he said.

KT confirmed its plan to introduce the iPad 2 from this month. The tablet will support fine-tuned five-gigahertz premium Wi-Fi services.

KT has seen ``disappointing results’’ for the sale of the iPad in Korea as consumers had doubts over the values of the device.

KT confirmed that it has no plans to expand its return policies to its some 1.1 million 2G customers as of the end of March.