Sprint fires Google Voice at AT&T - T-Mobile

It doesn't take an app anymore to use Google Voice on Sprint*.

It doesn't take an ape anymore to spot the 800 pound gorilla in the US wireless jungle : AT&T is having T-mobile for lunch, and the great silverback issues $ 39 bn in greenbacks and shares to pay the bill.

Putting both events at the same level seems unfair, but this is all about asymetric warfare. Sprint Nextel will probably tell this kind of story to the FCC.

Meanwhile, the VoIP app battle keeps raging between Google Voice, Tango, Viber, Skype, Fring, and scores of new players who don't have to plant antennas across the States.

Meanwhile, IRL, people try to survive a much more vital battle in Japan's most battered prefectures, where fixed broadband often proves to be the last link with the rest of mankind.

mot-bile 2011

* as the operator introduces Nexus S 4G, the netco stresses the software level ("Sprint integrates Google Voice") :

"Over time, we've worked to bring an integrated Google Voice experience to your mobile device by building mobile apps, introducing Google Voice Lite, and most recently Number Porting. But we felt that ultimately, the most simple solution would be to partner with carriers to seamlessly integrate Google Voice with your mobile phone.
Today, we’d like to share that we’ve teamed up with Sprint to do just that.
First, Sprint customers will be able to use their existing Sprint mobile number as their Google Voice number and have it ring multiple other phones simultaneously. So now, calls to your Sprint mobile number can easily be answered from your office or your home phone, or even your computer through Gmail. Calls from Gmail and text messages sent from google.com/voice will also display your Sprint number. This basically gives Sprint customers all the benefits of Google Voice without the need to change or port their number.
Alternatively, Google Voice users can choose to replace their Sprint number with their Google Voice number when placing calls or sending text messages from their Sprint handset. This feature works on all Sprint phones and gives Sprint users all the benefits of Google Voice without the need for an app.
In both cases, Google Voice replaces Sprint voicemail, giving Sprint customers transcribed voicemail messages available online and sent via email and/or text message. International calls made from Google Voice users’ Sprint phones will be connected by Google Voice at our very low rates, and Sprint customers will also have access to the rest of Google Voice’s features, like creating personalized voicemail greetings based on who’s calling, call recording, blocking unwanted callers and more."

2001 2011 2021 revolutions

The Nokia-Microsoft knot tying didn't quite come as a surprise - more the confirmation of a double failure, and the sign that times they have a-changed over the past decade.

Remember the time when both giants were competing for mobile data supremacy ? Well combined they still lead the smartphone OS barnum, but not as cultural leaders.

Ten years from now, we'll probably be laughing at the Apple-Google war - or rather at the Google-Facebook face off. Ten years ago, former webehemoth Yahoo! was licking his post-bubble wounds, toddler Google waiting for better times to consider its IPO, and Facebook was not even on its founders' brainwave maps (whoever said founders may be). Ten years ago, MNOs were trying to figure out how to recover from insane auctions for 3G spectrum.

2021 top duettists may not be born yet. Maybe Apple could be one of them. Not Apple the device manufacturer (still struggling with a sub-5% market share), but Apple the champion of cloud management services, and your favorite remote librarian.

But the next tide is coming. Take Southcentral Google, for instance : rumor has it they're considering a merger with fellow Baby Googles Southeastern Google and Northwestern Google. Announcements to be made in Seoul at the 5GLTE World Congress.

mot-bile 2011

SK Telecom keeps Hoppin

While I was blogging about KT's cloud computing services, rival SK Telecom was presenting its own cloud computing platform to the press, N-Screen.

The idea is to make convergence as seamless as possible for the enduser and service providers : the platform automatically recognises the device and adapts the content to it, and all DRM hassles have been taken care of in advance.

There too, your handset is as more a smartphone as a smartTV enabler. It's a Samsung device, of the now well established Galaxy S family, and it's branded Galaxy S Hoppin (among other characteristics : Android 2.2, 1 GHz CPU, 4-inch Super AMOLED display...). Subventions included, it will cost you KRW 300,000.

SKT has already been advertising massively for Hoppin, with an enduser glued to the screen in every context, even asleep. Since Hoppin is also the name of their cloud computing service, they will eventually communicate about other devices (TV, PCs, tablets, fixed phones... - note that more and more models of fixed phones feature a color screen in Korea).

N-Screen is an open platform, meaning first of all that everybody is invited to join. To prove successful, that should include, beyond endusers, more than a few content providers or handset manufacturers.

Same story for Android platforms : SK Telecom boasts about its close partnership with Google in hardware and software development (GED / Google Experience Device, Samsung Galaxy, Motorola Xoom Tablet, LG Electronics G-Slate...), and it is a clear leader at the handset level (SKT sold 83% of all Android handsets in Korea and now averages 20,000 units a day), but the operator is still struggling at the BtoBtoC level, even if developers are proposed a "T Academy" to create more apps for the "T Store".

This press conference followed the announcement of a partnership with Japan's KDDI and Softbank Mobile for NFC-based mobile payment. Smart Poster will be operational in both countries and aims for the global market. Local competitors with exotic proprietary solutions, take notice :

The aim of the trial test is to establish mutual compatibility between countries using NFC as a common international standard instead of existing local Korean or Japanese mobile financial service methods. Currently in Korea, telecommunication companies provide mobile financial services such as credit cards, public transportation, stock trading and banking using a finance-enabled USIM chip called the 'Combi Card'. While Japan's finance service utilizes a self-developed method called 'Felica' by installing a second chip, apart from the USIM, within the mobile device

NTT DoCoMo, a partner of KT, must have appreciated the ironic tribute. Some may hear some bitterness in the tone : as we often mentioned earlier, SKT has somehow abandoned its cultural and innovative leadership to Korea Telecom. It reshuffled its management and pledged to develop a "young, speedy organization", to promote "openness" and "collaboration", and to regain confidence overseas.

MelOn recently made it in Indonesia, and this partnership with Japanese MNOs is really significant, but it will take more to be recognized as a major value aggregator at the international level. Let's see how the new management takes up the challenge.

mot-bile 2011

Communication-finance convergence: KT joins SKT

Seems like SK Telecom's debuts as a credit card operator (see previous posts about the SKT-Hana Bank deal) spurred the competition. Korea Telecom announced yesterday that their participation in BC Card, the national leader, would increase from 1.98 to 35.83% after purchases from Woori Bank (20%) and Shinan Bank (13.85%). KT also negociates a further 4.03% participation with Busan Bank.

Lucky Koreans MNO: they can become content majors or financial institutions just by signing checks. And they formed a common lobby with other financial institutions to promote mobile banking in Korea (SK Telecom and KT with Mastercard, Shinhan Card, Samsung Card).

"Finance-communications convergence" comes handy as MNOs need to completely revamp their business models : voice revenues keep decreasing, and the data equation went crazy.

Significantly, KT is now insisting on Wifi coverage in its smartphones advertising campaigns, and promoting uCloud for consumers also as an IPTV service (Smart TV tomorrow I guess). Remaining a leader in cloud computing is an absolute must... and it sure beats car rentals as diversification (KT are also campaigning about that peripheric service of theirs).

mot-bile 2011

Atos Origin and the Three Musketeers

Atos Origin and France's 3 MNOs Orange, SFR, and Bouygues Telecom created Buyster, a JV devoted to ecommerce with a focus on micropayments and a first batch of merchants already on board (Darty, Rue du Commerce, Aquarelle...).

Led by Eric Gontier, a mobile multimedia veteran with an Atos origin (via Axime, who merged with Sligos to found Atos Origin during the late XXth Century), the new platform targets within 5 years a 10% market share in ecommerce against the likes of PayPal.

The concept also ties the Buyster account to a bank card (transactions will require a Buyster code), but it adds a link to the phone number, a key ID in this mobile world of ours. Conveniently enough, Orange, SFR, and ByT manage the bulk of France's numbers, be they fixed or mobile.

So long life to the new venture... and good luck for the URL : buyster.com is owned by an Australian retailer (buyster.com.au). From checks to kangaroo bounces... And oh, Box Creative LLC recently preempted buysters.com.


mot-bile 2011

Followers and leaders, hardwares and clouds

CES 2011 will probably celebrate Korea Inc's 3D, smart TVs, or cloud computing successes (see how Korea Telecom markets it's ucloud beyond business and professional targets, towards consumers).

And in retrospect, 2010 clearly marked a turning point for Korea : this is probably the year leadership spirit became mainstream.

I'm not talking about the "can do", "CEO me" spirit, but about a cultural shift from an eternal best follower to a trend setter.

Ever since I first came to Korea 20 years ago, business management has been based on international benchmarking, and executives obsessed with what others were doing overseas. Still now, you can feel this Japanese Complex (how to kill the economic father), or that CEO Complex (how would Steve or Bill think or do ?) almost everywhere, but a top down revolution is trickling down the hierarchy : start thinking by yourselves, go set the pace, all that come on, be a Tiger kind of stuff.

New generation of US-grown Ivy Leaguers instilled strategy into Korean boardrooms, converting top chaebol owners to quality, sustainability, and proactivity. Most notably, Hyundai's Chung Mong Koo or Samsung's Lee Kun-hee had to literally shake their own companies to force much needed cultural revolutions. A couple of years later, both companies shine among the top stars of 2010, but both have yet to confirm and to reach new levels in order to secure their recently claimed leaderships.

There's little choice for them : even if Samsung increases by 18% its research and development investments, competition remains fierce, and Chinese players keep catching up in all major innovation fields.

But this Korean revolution also faces two major homegrown bottlenecks : a SME ecosystem and an education system unfit for the challenges to come. Because paradoxically, the most connected country on Earth generated monsters hampering the emergence of a truly efficient network society.

Of course, this is a country where netizens have more power than anywhere else, but precisely because there's a wide gap between the people and the politic, economic, or media elites. Indeed, Korean society it as the same time too connected and too disconnected.

But let's get back to business, where evergrowing and ever more agile chaebols leave no room for manoeuvre to SMEs : small fishes can only grow dependent from bigger fishes as clients or providers... or end up as trophies in their acquisition sprees. Even at the peak of the economic crisis, SMEs had a tough time hiring or keeping talents because everybody wants to work for a big brand.

Big fishes are only starting to realize they need stronger players around. Take mobile applications, for instance : for years, the most advanced country in mobile multimedia was lacking a balanced ecosystem because operators wanted to control the whole chain and push their own solutions. The irruption of Apple in the local pond did not only wake up the smartphone market at the hardware level, but also the complete middleware and application ecosystem, forcing everybody to open up new stores and to look for new partners. If Korean mobile industry took over Europe ten years ago, it is only catching up now by moving towards a more open ecosystem, fitter for innovation*.

As usual, major cultural changes can't happen without a top-down intervention, and it sometimes takes a whale to set the pond in order : last year, the Korean government had to coerce industry leaders into collaborating with each other as well as with smaller companies on key R&D fields, because that was the only way to compete at the global level.

As a matter of fact, Korea's ultra-competitive culture doesn't prepare for coopetition nor for next generation partnerships : it's all about winning against competitors, being number one, nixing the Other.

The same can be said about Korea's ailing educational system. Ailing ? Korean students fare so well worldwide that this system is often praised as one of the most efficients... but record denatality and suicide rates tell a completely different tale : this system is now completely corrupt and must evolve. If Korea reached the top thanks to a merit-based, social-ladder-friendly educational system, it will collapse if it persists into this unfair, money-based nightmare where creativity is totally castrated, and where young humanoid robots compete in the ultimate dystopian race for conformity.

So instead of celebrating 2010 as the year of the confirmation of Korea as a global power in such various fields as economics, Olympics, or diplomacy, I'd like to expose 2010 as the year the Korean model reached its limits.

As we've seen, change is coming. And I'm confident it will quickly radiate across a society which enjoys an amazing ability to embrace change. The 1998 crisis could have brought an abrupt end to the Miracle on the Han River, but the country somehow managed to rebound, leveraging on regional opportunities (struggling Japan, booming China), but mostly on its own dynamics.

Seoul, the capital city, is showing the way by embracing cultural diversity and collaborative sourcing of new ideas to stimulate the SME ecosystem, to improve everyday life and international competitiveness. And at long last, the national government is reconsidering SMEs as a priority. Unfortunately, the much needed reform of education is not on the agenda of this otherwise very conservative power.

Now is the moment. Flush with money, surfing on an unprecedented wave of international recognition, Korea must have the courage to change key parts of its DNA if it wants to remain a top player.

mot-bile 2011

* Apple itself is not really a model of open business, but that's yet another story

IPTV in Korea (continued) - until really Smart TV takes over

Yet another update for Korean IPTV*. The market is nearing its second birthday, and the 3M subscribers mark : 2.93M as of December the 5th, according to the regulator (Korea Communications Commission).

Leader KT claims more than half of the pie (1.64M), with SKT a distant second (0.691M), and LGT - now U+ - not far behind (0.597M).

Nice, but not that impressive considering the wide adoption of broadband in the country. But as we saw before, the only 3 IPTV operators have faced many regulatory hurdles... which they deserved as the only 3 mobile network operators.

Note that this trio / kartel created SPOTV, a common channel to lock the rights for major sports. They were probably scared by the SBS revolution in the broadcasting arena : for the first time in the country, one network snatched exclusive rights for major sports events, the FIFA World Cup and the Olympic Games.

But I guess they are furthermore unwilling to enter a costly war which could also hurt IPTV as a whole. IPTV now claims 30% of digital pay-TV and seriously undermined their cableco rivals, but competition remains fierce, and one new major player will soon modify the broadcasting landscape: now allowed to enter the race, all major press groups are competing for new TV licenses. For the general channel license, Maeil Business Newspaper, Korea Economic Daily and Taekwang Group have little chance against the local giants : JoongAng Media Group, Chosun Ilbo, and Dong-A Ilbo. For the news-only channel, Yonhap faces CBS, Seoul Shinmun, MoneyToday, and Herald Media.

And IPTV set top boxes are already passe : Smart TVs are all the rage, with their handfuls of apps. The next big thing. They're actually quite cool, but you can't even check your email with them. Except of course by coupling these smart monitors with smarter devices.


mot-bile 2010

* see previous episodes, including "IPTV and VoIP in Korea : an update" and "IPTV in Korea: an update"

Google-Facebook : don't NIMBY evil ?

Google decided to stop non reciprocal dataflows with Facebook, starting with contacts which can, until now, be imported from Gmail.

Ahead of the Seoul G20, Google preferred a Chinese Wall to a Free Transfer Agreement, and a negative differenciation with most rivals who embrace THE social network. Not exactly what one would expect from the ultimate cloud computing / openness advocate..., but this kind of skirmishes could multiply between major netcos in the months to come.

mot-bile 2010

Smartphone Overloads and Tablet Scares

Korean operators are just beginning to "enjoy" the dark side of their honeymoon with smartphones : capacity issues. This as smartphone penetration remains relatively low (about 5 M users), and data-guzzling tablets loom on very close horizon (Samsung Galaxy, Apple iPad...).

MNOs can't say they weren't warned : they've been waging a war to secure as many hotspots as possible, rolling out WiFi, Wibro, and all you can eat fiber networks to prevent data overloads.

What puzzles me is the commercial war that accelerated wireless data network saturation this summer : non existent before, unlimited data offers have taken over the country and right now, every other smartphone user subscribes to these proven networkphobic plans. Furthermore and as we saw earlier (see "VoIP over 3G, unlimited data... SK Telecom victim of the summerheat wave ?"), the ones who ignited the war were no others than the ones who risked the most : market leaders SK Telecom. Needless to say, #2 KT soon followed suit, causing #3 LG U+ (formerly LG Telecom) to join the suicical party short afterwards.

Short term vision 101 ? On the brighter side, this madness may help next gen networks bloom even earlier : Korea already targets 1 Gbps and 10 Gbps for mobile and fixed data by 2012.

mot-bile 2010

Android Smart TV, Dual-Core Phone, Dual-Mode Policies

A few news from Korea :

LG will release Q4 2010 an Android smartphone running with Tegra 2, a 1GHz dual-core processor made by NVIDIA bound to enhance the mobile multimedia experience (3D, games, video...), and the manufacturer's position in the smartphone race.

Rival Samsung confirmed its ambitions in smart TV, probably also on Android.

At the app level, mobile commerce also benefits from the (late) smart wave, leveraging on a long history in mobile banking. But Hana SK Card (SK Telecom's TouchSeven Card with Hana Bank) "only" claimed 20,000 holders end of May. Yet, KT's Show Touch (with Shinan Bank) joined the party, so the market should grow much faster.

The mobile arena is the perfect space to boost reforms in Korea's SME ecosystem : operators are starting to understand the need to open up and to stimulate diversity, and the government is pushing for a "fair society" : in the country, chaebols (big conglomerates) tend to absorb value as soon as it pops up, leaving crumbs to smaller players, who themselves are not used to surviving off these giant hooks.

On the other hand, the same government is about to grant broadcasting rights to major press groups, accelerating concentration in the medias...

The people doesn't seem to care, provided panem et circenses keep getting better. And that's also what smart TV and dual core handsets are about.

mot-bile 2010

Paul Allen v. Rest Of The Web : NTP Redux ?

Paul Allen's Interval Licensing is suing a few Microsoft foes : AOL, Apple, eBay, Facebook, Google, Netflix, Office Depot, OfficeMax, Staples, Yahoo, YouTube.

The charges : patent infringement regarding 4 patents owned by Interval Licensing - as the name suggests, an empty shell meant to make as many bucks as possible out of
Interval Research "creations".

In this case, the patents protect : a "Browser (...) With Particular Application to Browsing Information Represented By Audiovisual Data", an "Attention Manager", and a system to "Alert(...) Users to Items of Current Interest".

Now this episode definitely became an "item of current interest" in a sector still shaken by the NTP/RIM battle over patents.

What puzzles me is to see Paul Allen, who only left the board of Microsoft in 2000, claim a leadership in browsers : Microsoft copied all major user interface disruptions from Apple, starting with the "windows" concept, and the company didn't believe in the internet, joining the bandwagon very late, starting the Internet Explorer project two years after Mosaic was created. Why not sue Mosaic then ? And IE for exploiting it ?

You may win your lawsuit, just like NTP did. But do you want to go down in history for that last caricature of Microsoftian Evilness ?

You'd better stick to rock'n roll, Paulie.

mot-bile 2010

15 Gigas of fame for metroPCS : Samsung Craft 4G LTE (SCH-R900)

Samsung confirmed today to Yonhap that metroPCS Wireless Inc., a CDMA player, would launch its SCH-R900 4G model (LTE with 3G CDMA) in the US. The gizmo had been announced by metroPCS last March, and approved by the FCC last month (leaks for geeks included).

At the OS level, Android remains a favorite.

At the network level, metroPCS has rolled out LTE on places where people love to show off : Las Vegas and Dallas.

At the pricing level, observers expect a $300 price tag, but even more interesting to see will be how aggressively this MNO, specialized in discount and prepaid, will price data. The Texas-based company operates on major US markets, and claims over 7 million subs.

Verizon Wireless & co won't let it enjoy TTM leadership for too long, and they will roll out more aggressively.

Until then, great opportunity to shine. How about Warholian 15 Gigas, the data equivalent to the 15 minutes of fame ?

mot-bile 2010

Korea Telecom signs the country's first MVNOs

A decade after other countries, Korea is discovering the charms of MVNOhood.

Korea Telecom signed 3 partnerships - a classic mix indeed :
- voice-centric Free Telecom (prepaid offers)
- data-centric EverGreen Mobile (EGMobile)
- entertainment-oriented Entaz (mobile games)

Partnerships were clinched via KTF DoCoMo Mobile and the Fast Incubation Center (FIC), the new unit in charge of stimulating the ecosystem around the company, including a Smart Open Forum.

"Open", but to a certain point : none of the first 3 MVNOs is a big name, even in its own field. Bigger fishes were kept at bay, like ONSE Telecom who, as we saw earlier, was a more than outspoken candidate. It rather looks like the perfect alibi for the regulator, and a convenient training ground for new processes and business models : wider "openings" will be requiered, and KT wants to remain competitive at the international level.

Rivals SK Telecom and LG Telecom will probably follow a similar path. I wouldn't expect from the leader a disruptive deal with a flamboyant player... unless of course the said player is a in-house spinoff in disguise (ie MelOn or another multimedia brand, and a business-centric package.


mot-bile 2010

Motorola's Android Tablet : Focus On TV (Apple, Amazon, Others Watching)

Motorola and Android have already met, but Motorola and tablets are a new item.

The 10 inch screen device would be bundled with Verizon FiOS TV (pay-TV) service, which makes perfect sense. Much more sense than say Nokia, to name a fabled marketing counter-example... Let's see how rivals will move, for instance how Samsung will position its own Android tablet, smaller in size but with a screen of potentially much better quality, and a better grasp at personal computing.

But this is first about entertainment, and Verizon takes and interesting shot in the convergence barnum. Most quadplay operators across the World have necessarily been, if not working on, at least thinking about a "tabletish" gizmo to complete the set of home / away screens, and if people start (for instance) massively and legally downloading and watching movies with an Android 3.0 / 3G ticket on their tablet this November, xmas season looks fine...

Except maybe for Amazon : expect even more push marketing until then... unless of course Jeff Bezos manages to stevejobs a new Kindle feature high up into the buzzosphere.


mot-bile 2010

On Your Mark, Get Set, Go

The day after Steve Balmer shook hands with Lee Sang-chul to celebrate a strategic partnership in cloud computing between Microsoft and LG U+ (formerly LG Telecom), Google's Andy Rubin and SK Telecom's Bae Joon-dong did the same over Android Market, to boost the Korean developer ecosystem around the robot version of Shrek (this green Android oger has layers too, beyond the OS stage).

Significantly, the deal was at the CEO level for Korea's #3 MNO and at the VP level for the leader.

Steve Jobs didn't need to show up in Korea, where the Apple-KT partnership ignited much delayed smartphone boom (see previous episodes). Furthermore, he wouldn't be welcomed these days : the war of words between Apple and Samsung has turned nasty in the UK, where the latter countered repeated attacks by the former with a comparative ad in spite of specific orders from Seoul headquarters : Samsung is certainly a major competitor to the iPhone (half a million Samsung Galaxy S sold during the first month), but also a major provider for Apple.

If the Microsoft / Number 3 model is a classic, the Google-SK Telecom deal could prove a game changer in a country where the 3 major operators dominate too much the value chain / value cloud for app providers to multiply, thrive, and become global players.

But overall, between Microsoft, Apple, and Google, Korea Inc somehow confirms its return into the US Inc technosphere of influence.

Korea Telecom's idea of diversification ? Setting up KT Estate, a real estate arm, to manage its already impressive assets : 30% of revenues last year !

mot-bile 2010

eCommerce revolution in Korea: online sales become the first distribution channel

When I first came to Korea 20 years ago, Department Stores were becoming the main distribution channel for many consumer goods, taking over traditional door-to-door sales.

Convenience stores (FamilyMart, LG25 - now GS25 -, BuyTheWay, 7Eleven...) were also gaining ground. Then came the hypermarkets (eMart, Carrefour at one moment, Samsung / Tesco HomePlus, Lotte Mart...), and the SSMs / SuperSuperMarkets (Lotte mySuper, HomePlus Express, eMart Everyday...).

One by one, small groceries / mom & pop stores closed, and traditional markets plummeted, killed by discount shopping (or supposedly "discount" shopping : a recent survey pointed out that for many food items, traditional markets are actually cheaper). Survivors could count on one system that protected both food majors and small distributors : product packaging including the price tag regardless of the sales channel, which guaranteed the same price for such basic items as instant noodles or ice creams. But this system is about to be abandoned and anyway, it didn't mean much anymore : big discount sell their own brands of instant noodles, and my local SSM offers a year-round 50% discount on all ice creams.

Even as competition raged between discount shops, many opening 24/7/365, Department Stores (Lotte DS, Shinsegae DS, Hyundai DS, Galleria DS...), sometimes growing into ambitious complexes (ie Shinsegae Centum City in Busan) remained ahead for many consumer goods and fashion.

Until now : online sales have just become Korea's first distribution channel.

This doesn't come as a surprise for anyone living in "ubiquitous" Korea : beyond pure players (ie Auction), even brick and mortar leaders are pushing ecommerce very hard, prefering cannibalization to the loss of a customer.

Somehow, we're back to square one and door-to-door sales. The first door is your mobile, PC or TV screen, but everything is done to deliver it wherever you live (home deliveries keep booming), wherever you work (Seoul would collapse without cheap express deliveries), and even wherever you go (ie location based services and mobile couponing).

Like for ADSL or FTTH, Korea's economy of access is unbeatable. Because of urban density, because major players are ready to offer what comes as a premium anywhere else, and furthermore because in many cases for smaller fish, the last mile is provided by people working under the legal hourly wage, ready to make a buck even if it doesn't make any sense if you simply take into account transportation costs. When you see a truck carrying about five hundred eggs on a highway, you know something is wrong. And when you order a book online, the delivery person is rarely twice the same plain-clothes individual.

I guess that's one of the reasons why Amazon is not in Korea. The retailer tried to do some business via Samsung / SIMS more than ten years ago but failed. So Amazon ships from other countries to international customers while Kim & Chang law firm securely protects Amazon.co.kr URL.

Of course, Amazon would face pure players in cultural goods, such as Aladdin (now Aladin.co.kr), or Kyobo Book Center (very ambitious in the ebook ecosystem), but I don't think it's about competition : players differenciating themselves on logistic platforms tend to struggle here. Carrefour left the country in spite of commercial success for regulatory reasons : it couldn't operate with its usual purchasing power model. I think the logistics equation could be very tricky for Amazon.

eBay is faring much better in Korea (as Auction.co.kr) - it even wolfed down G-market, snatching it away from Inter Park... but eBay more into auctions and C2C than into retailing and B2C. And when it advertised massively on internet shopping, big retailers pushed the pedal to the metal.

But the biggest revolution for e-commerce in Korea this year is the end of Microsoft Explorer's de facto monopoly since July 1st : since 1999, all online shopping and banking services had to use ActiveX systems, but the Financial Services Commission put an end to it following the recent boom in smartphones.

mot-bile 2010 - see also my original post on Seoul Village

3D notebooks from LG

LG is not only betting on TVs for 3D (1 million units expected this year) : 3 new laptops have just been unveiled, priced about 20% more than standard models (KRW 1.6 M to 1.9 M - USD 1,330 to 1,580 these days). Desktops and monitors were also introduced, all requiring 3D glasses to enjoy the effect.

The Korean manufacturer expects 3D to represent 30% of its laptop sales in 2011, and the segment to boom (1.1 M units in 2011, 13.5 in 2013). For the number 2 player in TV displays, 3D could prove a game changer in a market where it's struggling among second-tier manufacturers. The move is also defensive as TV and PC converge, often sharing the same screens.

Beyond movies, web enabled / 3D devices are ideal online gaming and MMORPG, key drivers in Korea : LG could leverage on the PC Bang - game editors ecosystem to accelerate adoption and stimulate content production.

mot-bile 2010

VoIP over 3G, unlimited data... SK Telecom victim of the summerheat wave ?

SK Telecom is lobbying in favor of a more open regulation for mobile Voice over IP in Korea : instead of being only legal on Wi-Fi, it would be authorized on 3G as well. SKT would then provide the service through Skype-like solutions - actually, I wouldn't be surprised to see some Google inside (see "Gizmo5 found its Google Voice"), and consumers would only pay for the data (not to mention fees from the app provider).

OK OK. There's a catch : data rates are pretty expensive in Korea.

Well, not so much now : SK Telecom also announced an unlimited data plan for all subs with a data package of over KRW 55,000 (about USD 45) per month. That would be for smartphone holders, but as far as I know, you can use your smartphone as a modem for greedier devices.

Alright. Here is a small operator struggling for market share, desperate to win big customers, and not worried about network capacity.

Wait a minute. SKT is by far the leader of Korea's (saturated) market, with about 51% of the pie. SKT does not sell iPhones like AT&T, whose success with Apple forced a spectacular backpedaling on unlimited data plans, but SKT is doing pretty well with Samsung Galaxy S (over 300,000 units sold for this Android handset in Korea). Its position doesn't seem that much threatened in the short term.

But what looks like a desperate defensive move following data rate cuts by competitors is also an aggressive move on convergence / quadplay offers (or is it pentaplay, now that the battle rages on wi-fi hotspots ?). Voice ? A commodity, sooner than later - losing a big customer altogether would cost me much more. And guess what ? Ultra-Broadband Convergence Network (UBcN) is around the corner (that's to say 2013 but blocks are bigger around here).

Still, unlimited data plans are a very risky bet in "ubiquitous Korea".


mot-bile 2010

Cisco Cius ? Put it on my Samsung Galaxy Tab

With its Android based Galaxy series, Samsung seems to have packaged a nice alternative to the iPhone / iPad duet. Or is it the whole industry that's growing tired of the Cupertino arrogance ?

Anyway, the Galaxy S is already selling very well in Korea (over 200,000 units within days) and overseas (the top 5 MNOs went for it, 100 worldwide), and NTT DoCoMo already announced the launch of Galaxy Tab in October 2010 (LG's tablet is still expected in Q4).

Meanwhile, Cisco gave a new shot at the business tablet concept : the Cisco Cius is expected H1 2011. Also based on Android, the Cius looks much smaller than the 7 Inch Galaxy Tab, and seems to focus on video calls : "HD video (720p) with Cisco TelePresence solution interoperability for lifelike video communication with the simplicity of a phone call"*... That, of course, is provided you're connected to a big pipe, say Wi-Fi for instance.

Funny how Wi-Fi coverage is getting popular again : MNOs are abandoning flat rates for data... and all hopes that LTE can support the boom in heavy mobile / nomadic usages.

Cisco also throws in EVO 4G, Bluetooth, USB, the last one a sure bet.

But I would rather bet on RIM than Cisco for a hit in business circles, even if the BlackBerry Tablet is supposed to rely on the Blackberry handset for connectivity. Actually, that major drawback for the enduser could prove an excellent argument for CIOs and CFOs.

Nevermind that geeky CEO.


mot-bile 2010

* other applications apabilities (see Cisco Cius website) :
• 802.11a/b/g/n Wi-Fi, 3G/4G data and Bluetooth 3.0 help employees stay connected on and off-campus
• Virtual desktop client enables highly secure access to cloud-based business applications
• Android operating system, with access Android marketplace applications
• Collaboration applications including Cisco Quad, Cisco Show and Share, WebEx, Presence, and IM
Tablet Highlights:
• 7” diagonal, high-resolution color screen with contact-based touch targets delivers an elegant, intuitive experience
• HD Soundstation supports Bluetooth and USB peripherals, 10/100/1000 wired connectivity and a handset option
• Detachable and serviceable 8-hour battery for a full day of work
• Highly secure remote connections with Cisco AnyConnect Security VPN Client
• HD audio with wideband support (tablet, HD Soundstation)

Woot flows with the Amazon

In his own words*, Woot CEO Matt Rutledge announced the agreement between his hot sales website and Amazon.com. The Woot brand shall survive like today : barely Audible, but with a music of its own.

Barely Audible ? I wouldn't be surprised to see Jeff Bezos use a loudspeaker for that one on social networking sites.

mot-bile 2010


* see "Amazon, Woot, and You: But Mostly Woot", following an email stating "BREAKING: Woot To Be Acquired By Amazon, Then Left To Amuse Ourselves - Holy crap! Woot has signed an agreement with Amazon - yes, the Amazon - to become an independent subsidiary of the ecommerce colossus. Woot HQ will remain in Carrollton, Texas, and will operate as autonomously as other Amazon companies like Zappos and Audible. Visit the blog for our usual snarky commentary and tell us what you think. - Woot" (NB at this stage, nothing about the deal on Amazon.com's corporate website)