Wednesday, May 20, 2009

3G Users Set to Top 20 Million


The country's number of third-generation (3G) mobile users is approaching 20 million, according to figures from wireless operators. / Korea Times File

By Kim Tong-hyung
Staff Reporter

The number of third-generation (3G) customers in Korea is approaching 20 million, according to figures provided by mobile telephony operators Tuesday, with more and more wireless users picking up multifunctional phones that enable Web browsing, multimedia features and other data applications.

However, the slow growth of average revenue per user (APRU) suggests that consumers aren't using their ultra-cool handsets for anything much other than voice.

At the end of April, SK Telecom, the country's largest wireless carrier, had around 9.83 million customers for its 3G services, trailed by KTF, the No. 2 carrier, with 95.9 million customers.

That combines for about 19.43 million customers, and industry watchers believe the total of 3G users will hit the 20-million mark by the end of the month. The marketing wars are heating up in the wireless market ahead of the merger between KT, the country's biggest telephone and Internet company, and KTF.

SK Telecom added 390,000 3G users in April alone, edging KTF's 360,000.

``The number of our 3G users is increasing at a quicker pace than we predicted,'' said a SK Telecom spokesman.

``We expect to retain our growth trajectory, as we continue to expand our lineup of smart phones and other data-enabled handsets that are becoming trendsetters. This will also help improve our APRU by generating more data revenue.''

However, the increasing sales of expensive hardware have yet to materialize in a mobile Internet explosion to boost ARPU.

SK Telecom's ARPU for the first quarter was 41,372 won, down 5 percent from the previous quarter, while that of KTF, 38,118 won, represented a 4.1-percent decline. LG Telecom, the smallest of the three mobile telephony carriers, reported an ARPU OF 34,412 won, nearly a 5-percent decline from the previous quarter.

The average data revenue of SK Telecom users was reported at 8,988 won, followed by KTF's 7,599 won and LG Telecom's 3,598 won, proving that the mobile Internet services aren't coming close to making up for the declining voice business.

To boost mobile Internet usage, the carriers are competing to introduce new fixed-rate plans for their data services. SK Telecom is planning to introduce an ``all-you-can eat" monthly plan for data usage during the third-quarter of the year, while KTF is expanding its available applications provided under its 10,000 won per month data plans.

thkim@koreatimes.co.kr


No comments: