By Kim Yoo-chul
The gloves are coming off in the smartphone fight between SK Telecom and KT, and the focus of contention is not limited only to which has the better device but also the better wireless network.
Although SK Telecom's overall status as the country's top mobile-phone operator remains undisputed, as it has more than half of the country’s wireless consumers, KT has managed to force parity in the booming smartphone segment after presenting the Apple iPhones, which Koreans have been crazy about.
SK Telecom is also struggling to compete with KT's vast Wi-Fi wireless Internet network, a disparity that is beginning to be manifested more clearly as the Web moves increasingly toward mobile devices.
Apparently, SK Telecom can't afford to admit that its wireless network is less equipped to support mobile Internet users than that of its rival's, and is considering more ways to improve the systems of its third-generation (3G) cellular network to allow users a larger freedom in data usage.
In a news conference at its Seoul headquarters on Thursday, SK Telecom announced plans to provide what it calls as a "data freeway," which is summarized by dedicating a part of its 3G spectrum to handle only data, with the rest of the capacity used for voice.
The differentiation will allow the company to handle a volume of data six times larger than the current level, company officials said.
SK Telecom also plans to establish up to 10,000 femtocells, or small cellular base stations, at local companies, schools and homes through early next year to move more user data.
Ha Jang-yong, the head of SK Telecom's network division, snuck a verbal jab at KT by claiming that his company's revamped 3G network will eventually prove as a better way to handle mobile data than Wi-Fi.
"Even if KT expands its Wi-Fi zones to 1 million, Wi-Fi should not become the networks' mainstream, considering less competency in mobility and national coverage," said Ha.
"Coverage, stability and security are the top considerations in using mobile Internet services, however, Wi-Fi is relatively vulnerable over security and not guaranteed for greater mobility."
KT, which is the runner-up in mobile telephony but the top carrier in fixed-line telephony and Internet, has announced its 5.1 trillion won investment plan as part of the strategy to upgrade its wireless networks by 2014. The company is planning to invest 800 billion won for an expansion in wireless network coverage, including Wi-Fi.
Ha said SK Telecom has been on the route to introduce the next-generation telecom technology dubbed as long-term evolution (LTE) in the second half of 2011, as planned.
To effectively handle higher data traffic amid the flurry of "all-in-one" electronic devices, SK Telecom has been set to expand the LTE service to the Seoul metropolitan area and six other satellite cities by 2012. The country-wide coverage has been ready from 2013.
Ha also added SK Telecom has shifted one of its four frequency areas (FA) to data-only one for better data management. "We will use two more FAs for data processing by using WCDMA frequencies allocated by the government," according to the executive.
With the announcements, Ha said SK Telecom will use Wi-Fi zones as the secondary channel as Wi-Fi still has some advantages to cover higher traffic in limited areas.
"We are considering how to use Wi-Fi as a back-up measure," he told reporters.
SK is planning to expand its Wi-Fi zones to 15,000 before 2010.
Its CEO Jung Man-won separately said SK Telecom will release Samsung Electronics' tablet-style PC ― Galaxy Tab ― onto local shelves from September and added more lineups are ready.
The early introduction of the Galaxy Tab has well been regarded by market analysts and industry officials as the pre-emptive measure before the landing of Apple’s iPads in the fourth quarter.
SK Telecom is getting Samsung’s full support from marketing to technologies in return for SK’s drop to introduce Apples 3G-based iPhones, while KT has been struggling over fewer smartphone models as the world’s second-biggest handset vendor Samsung Electronics was still refusing to give more of the latest smartphone models in a retaliatory action for the iPhone arrival.