Korean CDMA Spreading across Asia

There are analyses showing that Korean mobile service providers such as KTF and SK Telecom will be able to generate a substantial profit in the future if the European GSM service used in 90 percent of the Asian market including Taiwan is converted to their CDMA technology.

Reasons Why CDMA is Preferable to GSM—

As mobile telephones have evolved, VOD services providing TV broadcasting, movies, and music videos real-time are emerging as a booming market.

The mobile data transmission speed of mobile phones using the GSM technology is too slow for users to enjoy VOD properly. On the other hand, the CDMA method, led by Korea, has strong competitiveness with its high speed.

The reason VOD services through CDMA has not been vibrant in the Asian market is due to the expensive prices of the devices, which stand at $300~400, much higher than $100 GSM devices. However, this issue has been resolved with China producing CDMA devices in the $100 price range.

President Lak Shou of Vibo Telecom said, “The Korean CDMA method is indispensable in VOD services to overcome shortcomings as a late runner and take root in the market.”

Korea Celebrities on Asia’s Mobile Phones—

With a strong fever for Korean pop culture sweeping through Taiwan, Korean celebrities like Bae Yong-jun of “Winter Sonata,” Lee Young-ae of “Daejanggum,” and Jun Ji-hyun are very popular.

Taiwanese have only encountered Korean cultural contents through TV or movie screens so far, but now will be able to enjoy them from cell phones, based on KTF’s CDMA technology. As Vibo Telecom is planning to start pilot services from the end of this year, Korea’s cultural contents are projected to be exported from next year. President Nam Jung-soo of KTF stressed that “This will provide an opportunity for Korean SMEs to expand abroad as five, six mobile internet solution companies and CDMA companies are jointly participating in this project.”

Do-Young Kim nirvana1@donga.com