Site Map

BUYUSA.GOV -- U.S. Commercial Service

AsiaNow

Wireless Broadband Internet Equipment and Services- ROK

Wireless Broadband Internet Equipment and Services

Republic of Korea

Overview

2004 2005 2006 (estimated)

Total Market Size N/A N/A 445

Total Local Production N/A N/A 307

Total Exports N/A N/A 10

Total Imports N/A N/A 148

(Unit: USD million)

[Source: The above statistics are unofficial estimates by Commercial Service Korea.]

[ USD1= 1,200 Won (2004), 1,100 Won (2005), 950 Won (2006) ]

Korea ranks among the top countries in the world for internet usage and broadband penetration and has one of the highest number of broadband subscribers among all OECD countries. Korea’s total number of broadband subscribers is estimated to have reached 90 percent of the nation’s 15 million households as of the end of 2006 and therefore, service providers are planning for more valued-added services including wireless broadband service and Intern Protocol Television (IPTV).

Wireless Internet access service in Korea can be categorized into two major services; fixed wireless Internet (WLAN) based on WiFi technology, and mobile internet based on Code Division Multiple Access (CDMA) technology. Mobile and WLAN services enable users to access full Internet services on handheld devices without cable connections, allowing mobility and convenience. However, in order to satisfy demand for higher bandwidth and mobility over the existing wireless Internet, new “mobile Wimax”, or “Wireless Broadband” (WiBro) service was commercialized in early 2006, using 2.3GHz spectrum by KT and SK Telecom with limited coverage in Seoul. WiBro will become the foundation of “Ubiquitous-Korea”, a seamless Internet access/ communication environment planned by the Korean government in cooperation with industry. The WiBro service market is expected to attract 600,000 subscribers reaching USD 130 million in 2007, driving more demands in hardware and applications.

WiBro technology is part of the IEEE802.16 family of wireless Internet specifications, Wimax, and is expected to offer up to 5-15Mbps bandwidth to mobile devices traveling at over 60 kilometers per hour. Major local companies, including Samsung, LG, and PosData as well as the Electronic Technology Research Institute (ETRI), a Ministry of Information and Communication (MIC)-sponsored R&D think tank, are developing a new standard with the help of the Telecom Technology Association (TTA). The development includes the evaluation and adaptation of different types of foreign and local technologies. ETRI will play a major role in developing and localizing WiBro core technology. The institute plans to make at least 20 percent of the technology home-grown in order to minimize the payment of licensing fees to foreign firms. This aggressive agenda calls for Immediate R&D and infrastructure investment for new WiBro technologies by foreign companies since Korean government realized the importance of global standardization in order to export new technologies.

In fact, in 2006, America’s third-largest communication company, Sprint Nextel, agreed to establish portable internet communications network with Samsung Electronics, Intel and Motorola and experts expect that up to USD $ 4 billion would be financed building a new communication system across the U.S, targeting 100 million subscribers.

Korea’s global leadership in wireless communications and broadband Internet access services has spawned tremendous demand for all types of equipment, contents and solutions, especially for specialized and innovative technologies, providing opportunities for sales of advanced and highly specialized U.S. telecommunications equipment, solutions and contents.

Best Prospects/Services

- WiBro technologies

- Internet Protocol (IP) TV

- High Speed Data Packet Access (HSDPA) 3.5G technology

Opportunities

Market demand for WiBro services should drive investment in the telecom sector for the next five years. National-wide infrastructure installation for WiBro will be deployed in 2007 and more “killer applications” and relevant services including Triple Play Services (TPS), Internet Protocol TV and Video on Demand (VoD) are expected to be introduced by KT, SK Telecom, Hanaro Telecom, etc. triggering more service and content demand.

According to the Ministry of Information and Communication (MIC), the market demand for WiBro service is expected to reach USD 3.7 billion by 2011 with nine million subscribers and eventually transition to 4th Generation Next Generation Network (NGN) telecom network. The total market demand for mobile WiMax equipment and solutions is expected to reach a total of USD 2 billion over the next three years.

In parallel, the mobile date services market, the size of which accounted for USD 3.5 billion in 2006, is expected to continue its growth due to the deployment of a 3.5 Generation mobile internet service, High Speed Downlink Packet Access (HSDPA)

Resources

Trade Shows

Korea IT Show 2007 (April 19-22, 2007)

http://www.kisexpo.co.kr

Smart Home Network Show (May 30-Jun 2, 2007)

http://www.smarthomeshow.com

The 20th Solution & Contents Exhibition of Korea (Jun 20-23, 2007)

http://www.sek.co.kr

2007 IT EXPO BUSAN (Sep 12-15, 2007)

http://itexpo.or.kr

KES 2007 (Oct 9-13, 2007)

http://www.kes.org