LG Uplus strives to become game-changer

By Kim Yoo-chul

The nation's No. 1 mobile carrier SK Telecom could face increased competition after the smallest teleco, LG Uplus, has shown strong optimism in leading the advanced mobile technology sector.

Amid an explosive demand for wireless data-intensive devices such as smartphones and tablets, the three local teleco firms, including KT, are investing heavily for an early transition to fourth-generation (4G) long term evolution (LTE) technology.

SK Telecom and LG Uplus have no doubt that the LTE has a greater capacity for video and other data-intensive functions.

But strategies are somewhat different. LG Uplus is pinning high hopes on becoming the top LTE service provider in terms of market share, though SK believes that its proven track record of handling networks and base stations will bring it better revenue in LTE as well.

In a press conference, LG Uplus CEO Lee Sang-chul said it will surpass SK Telecom in terms of LTE subscribers from 2014 as it aims to secure 10 million LTE customers within the next three years.

SK Telecom, meanwhile, intends to grab eight million LTE mobile service users in 2014.

``The 4G market is totally different. With more diverse LTE phones and investment, Uplus will become the biggest LTE service provider,’’ Lee told reporters in an event to start commercial LTE services, Thursday.

The upbeat plan comes after Uplus won the exclusive right to use a higher frequency mobile band of 2.1 GHz from the nation’s telecom regulator, which meant Lee could continue in his current job with the confidence of LG Group Chairman Koo Bon-moo.

``Uplus has been the smallest firm for 15 years, but we will expand nationwide LTE coverage by next year by building more base stations,’’ said Lee, adding Uplus is considering selling Apple’s upcoming 4G LTE-based iPhones.

The CEO said the carrier will cut its mobile rates as requested by the government to ease rising inflationary pressure and the official announcement will be publicized soon.

``Total corporate debt will rise as we need to launch various cash-raising campaigns including selling corporate bonds, but that will be manageable,’’ the bureaucrat-turned-businessman said.

SK Telecom cuts down

In a separate news conference, SK Telecom promised to offer a high-quality LTE-based voice service and widen coverage as it has 1,720 base stations in Seoul, which is far higher than around 500 of Uplus in Seoul and three other major cities.

``SK Telecom has been managing 800 MHz frequency for 28 years and that means we are better positioned to give an improved `voice over LTE’ service soon,’’ Bae Joon-dong, the head of SK Telecom’s network business told reporters.

But Bae said SK Telecom will initially use its existing 3G-based networks to provide voice services and the super-fast LTE network will be used only for mobile data.

SK will start the commercial LTE service from July 1 with two billing plans of 35,000 won and 49,000 won excluding the registration fee.

Its spokeswoman Kim Ji-won confirmed the plan to release handsets using 4G-based LTE technology from September.

SK Telecom also plans to release two LTE tablets in October. The company expects the number of its LTE subscribers to soar to 10 million by 2015 from an estimated 300,000 this year.

``The migration toward LTE doesn’t mean that SK would drop WiBro networks. We are using WiBro as back-up networks. LG Electronics will introduce LTE-WiBro handsets and models supporting both WCDMA and WiBro will also be released,’’ said Bae.

Kim said it will expand coverage nationwide by 2013. SK plans to invest more than 2 trillion won ($1.9 billion) on LTE by 2014.