By Kim Yoo-chul
Staff reporter
SK Telecom, the country's biggest mobile-phone carrier is talking with major handset vendors like Samsung Electronics and Apple to provide smartphones that work on its second-generation (2G) cellular network.
The carrier has approached Apple, which could go multicarrier for the iPhone 4, the latest version of its do-it-all smartphone, and is also looking for a local carrier for its iPad tablet computers.
SK Telecom currently controls more than 50 percent of Korean wireless users, but its decision to keep off the iPhone bandwagon has been costly, as it finds itself taking a beating by its industry rival, KT, which has sold nearly 1 million iPhones since its release last November.
It remains to be seen whether SK Telecom will get to sell the iPhone 4 or not, but Jung stressed that Apple devices are nonetheless considered as part of SK Telecom's future smartphone lineup.
KT is planning to launch the iPhone 4 in July.
Most of the smartphones currently on shelves are designed to work on third-generation (3G) networks, but SK Telecom sees a market for premium, data-enabled handsets for 2G customers too, Jung Man-won, chief executive of SK Telecom, said.
"We are currently talking with Apple to sell the 2G-based iPhones. However, nothing has been decided yet," Jung told reporters in a news conference at SK Telecom's Seoul headquarters, Wednesday.
SK Telecom is also talking with Samsung Electronics, the world's second-largest handset vendor and the local industry kingpin, for developing smartphones that run on 2G networks.
"It would be possible to sell smartphones based on the old code division multiple access (CDMA) technology by the end of the year. We admit that we should have been quicker to offer 2G smartphones to our users," Jung said.
Jung said the carrier raised its sales target for smartphones this year from 2 million to 2.5 million units, driven by the strong sales of handsets powered by the Google-backed Android operating system, including Samsung’s Galaxy S.
However, Jung stated that Apple must improve its repair and after-sales support services for SK Telecom to fully accept its products.
"Once again, Apple's poor after-sales policy is the biggest reason that is keeping us from completely committing to the next-generation iPhone. If Apple takes care of the problem, the iPhone 4 will be available to SK Telecom customers," Jung told The Korea Times at the sidelines of the news conference.
"Apple has already dropped its 'one country, one carrier' policy. It has been in talks with the top U.S. carrier Verizon Wireless to offer CDMA-based iPhones. Therefore, chances are wide open for us."
Steve Park, a representative of Apple's Korean branch, declined to comment on Jung’s remarks.
Jung said that SK Telecom has no plans to acquire its struggling broadband unit, SK Broadband, citing the lack of synergy.
"Our investors wouldn't want that. Acquiring the company physically is the easy part, but achieving chemical cohesion would be a lot more difficult. We aren't interested in going through all that," Jung said.
To improve its services for wireless users, Jung said SK Telecom will allow customers to make voice over Internet protocol (VoIP) calls over its third-generation cellular network, which would be a boon for applications makers such as Skype.
The usage of mobile Internet phone calls has currently been limited to Wi-Fi wireless networks. Jung said the company will make 15,000 Wi-Fi zones across the country by the end of 2010 to actively respond with increased demand for wireless data.
SK Telecom also vows to be at the forefront in long term evolution (LTE), a next-generation wireless technology that is competing with mobile WiMAX in the 4G standard wars.
As a major operator of WiBro, the local variant of mobile WiMAX, KT is showing more reluctance toward hedging its bets on LTE. SK Telecom will invest 3 trillion won ($2.47 billion) to construct its LTE network, Jung said.
"Our plan is to make the 4G jump earlier than everyone has been expecting," Jung said.
"LTE, much faster than current 3G networks, is built for data. However, we will continue to invest in WiBro as well," he said.