Triple Play, Triple Aggregation

SK Telecom confirmed April 5 as the date of its 5G launch - as soon as Samsung Galaxy S10 5G handsets are delivered (monthly plans expected around KRW55,000 / $49 per month). 

As expected, promoting a 'Social VR' experience well ahead of 5G ("Ready Player oksusu Social VR?") turned out to be a smart move to detect the levels of bandwidth required for an optimal user experience (e.g. 4G LTE too slow for rapid eye / head movements): Korea's leading MNO intends to leverage 5G compression technologies to speed up VR sessions by 30%, and to combine 5G with 4G and wifi where available to allow the download of a 2 Gb movie in only 4 seconds, dubbing the concept 'Triple Aggregation'.

While operators work hard to make the most of their costly pipes, other players parade with seemingly effortless solutions, but will Google Stadia fulfill its category killer potential? Announced at the Game Developers Conference by Sundar Pichai himself, the cloud-based platform and its Stadia Controler would love to piggyback the kind of boosters SKT has in store, but regardless, YouTube and Google Home integration will definitely help.

Apple had to react, but could only display an Apple Arcade that smells like 1980s spirit. Yeah! exclusive games! only on iOS, Mac, Apple TV! to download from your Apple Store! 

Even if that's in a different field, Apple TV+ is also about defending the Apple creative ecosystem. Maybe they will eventually netflixize their game the Alphabet way.

Anyway, Cupertino pulled a much more interesting card with their Apple Card, which should quickly allow them to show us some money.


mot-bile 2019

* see "SKT says 5G network is tested, ready to go"

Ready Player oksusu Social VR?

Introduced at the 2018 Mobile World Congress, and launched two weeks ago, oksusu Social VR provides, as the name suggests, social interactions in virtual environments by leveraging SK Telecom's 10M-subscriber-strong OTT platform oksusu. The service works with Samsung Gear VR and Google Daydream headsets, and video quality is equivalent to 80-inch full HD, with potential upgrades to 8K (7,680 x 4,320) and 360-degree IMAX screens on 5G.

Of course, Social VR has a role to play to promote 5G, which SKT is expected to launch this December. From day one, the experience ticks all the boxes to fill bigger pipes: higher definition, enhanced interactivity for key verticals (music, movies, sports, games...), new mass entertainment, (social) network effect,...

Catch me if you can

What's interesting is the angle SKT used to market the new service in their PR release "From virtual reality to cinema dating reality" ("가상현실에서 영화관 데이트 현실로" - 20181011): almost a dating or date-enhancing app, for young Koreans to escape a distressing everyday life, and to become successful avatars in exciting virtual worlds.

'Second Life', meet Spielberg's 'Ready Player One'.

Granted, there are technical constraints, you'll have to wait for that sensitive suit, and for the moment, 'interactions' are basically what audiences are allowed to do IRL: discuss with their neighbors, change seats, throw popcorn at the screen. And to avoid inaudibility, only up to eight people can chat together while watching the same video contents in one of the 5 kinds of virtual spaces already available: living room, movie theater, performance hall, sports venue, and e-sports room. 

So couch potato goes VR, but that's the only the beginning. You can already watch NBA games on VR, and judging how GAFA joined the sports rights battle, more platforms will emerge. Including for amateur virtual space designers - think MySpace in the age of Google Sketchup and Google Tilt. I'm pretty sure Korea will soon have its fair share of the VR addicts I envisioned in my 1980s short story 'Lautriv'.

A couple of years ago, I was dragged to a hologram K-pop musical in Seoul, and most fans came in pairs or small groups of friends, enjoying the show almost as if it were the same thing. But you wouldn't have Beatlemania-level screams, which I think may happen in a soundproof environment many are used to: the noraebang or karaoke room they book for a couple of hours to let it go full throttle. I bet many of these facilities will add the VR experience, to spice up the karaoke (on stage with your idol), or simply for sessions of oksusu Social VR (or their likes) between friends. PC-bang may evolve differently, with smaller cells, and a focus on VR games and e-sports.

Anyway, you won't know what hits you until it's too late.

mot-bile 2018

IoT as in the 'Internet of Turds'?

If LG U+ got, as expected, the smaller chunk of 5G spectrum in this week's auctions, they sure made a splash with their connected bidet-toilets. 

* 

Let's start with these 5G auctions, where Korea raised 3.6183 trillion won from the 3 bidders, not even 10% more than the starting point of KRW 3.3 tn; just enough to show an illusion of fight. All 3 MNOs claimed 800MHz in the 2.8GHz spectrum, and in the 3.5GHz spectrum, #3 LG U+ got 80MHz compared to 100 for #1 SK Telecom and #2 Korea Telecom. 

Note that SKT just announced successful tests with Nokia on 3GPP-approved 5G SA (StandAlone), a national first following last December's world first on 5G NSA (Non-StandAlone). You can expect SKT and KT to launch on December 1st (the date the regulator set to allow service) to continue their battle over 5G leadership. They'll probably start on 3.5GHz, at least in the capital Seoul, and key entry points such as Incheon. 

* 

Now about that bidet-toilet thing. 

You first have to understand that many people in East Asia already enjoy electronic systems, complete with water noozles and seat warmers. Here, LG U+ teams up with Inus Bath to add connectivity to the Novita model:

This most essential innovation brings IoT to new territories (the 'Internet of Turds'?). From your smartphone, you can pre-warm your seats, or post-flush in case you forgot to do it. Each member of the family can instantly enjoy their preferred water temperature, pressure, or nozzle position, and you will receive alerts if you stay too long, because no one should be above the loo eternally. 

Mercifully, no cameras are connected so far, but in this over-connected country where last week, 20,000 victims of peeping toms demonstrated on the street, there were already cases of perverts installing spycams in public rest rooms...

In any case, paranoids should worry: LG U+ announced that A.I. will john later. Not Amazon's Echo (who wants more echo in this room, or Alexa sending your personal records by email?), but Naver's Clova: when it's (paper) rolled out, you can voice control this new sentient environment.

* 

The good thing with not being the highest bidder in an auction is that you're flush with enough money to become the highest bidet. 

Will LG U+ rivals enter this fascinating Game of Thrones? 

mot-bile 2018

Once GPON a time in the East

SK Telecom announced their 2.5 Gbps service over GPON (Gigabit-capable Passive Optical Network), 5 Gbps and 10 Gbps packages by EOY 2018.

SK Broadband already covers 40% of Korea, and targets 80% by 2020. Showcased in Pyeongchang* and at the recent Inter Korean Summit by KT, 5G shall be launched partly in March 2019 (3.5GHz and 28GHz auctioned), and nationwide in 2022. 

Don't worry about filling the pipes in a country that demands everyday faster services. The traditional mecca of extreme online gaming (MMORPG and esports) is getting addicted to blockchain and bandwidth-hungry services (MelOn HD, Amazon Prime...). If IPTV remains less popular than in France, subscriber bases keep catching up. SKT's broadband and mobile units now claim respectively 4.46M and 8.88M 'Monthly Active Users' (a 25.5% gain YOY for the latter, branded Oksusu).

SKT maintains its leadership over KT for another demanding service, A.I. assistants**: NUGU reached 3M users Q1 2018 (+9.6% YOY - 5M expected EOY), GiGa Genie 'only' 710k. And they are bound to leverage this key entry point in Korean households after the acquisitions of quantum sensing leader ID Quantique ('quantum-safe cryptography' from Switzerland), and the nation's second security service provider ADT Caps.

3M subs for NUGU, SK Telecom's A.I. assistant (presented here by plastic surgery - enhanced artificial assistants)

Anyway, SKT and KT are compelled to boost new streams of revenues: both posted small decreases in revenues following the switch to new accounting norms, and the sword of Damocles that has been threatening to strike them for 7 years might just do that: the Supreme Court confirmed that MNOs can't postpone anymore the slashing of their outrageously expensive plans.

mot-bile 2018

* see "South Cow-rea already cow-nected to 5G". Note that 77.9% of KT subscribers are already on LTE.
** according to them, people using simultaneously smartphones, fixed internet, and A.I. assistants at home will still enjoy more than 800 Mbps over GPON.

South Cow-rea already cow-nected to 5G

Lazy MNOs usually settle for milking the cow, but SK Telecom is neither lazy, not your usual MNO. And in its latest presentation, the Korean leader suggested to IoT-ize the cow in order to generate new applications and revenues:

LiveCare: "oral implant of bio capsule in cow, extract real-time information through LoRa, provide analysis through Web/app, alert and message to farmer" - that was Korea's version of the classic 'you have two cows' parable.

Of course, LiveCare was only a niche app illustrating the way the MNO intends to leverage its core techno and infra (network, A.I., cloud, data) to boost new business (e.g. IoT, commerce, media).  

A couple of days ago, BT CEO Gavin Patterson called all players to 'build a strong business case for 5G', and measuring bovine farts doesn't exactly sound like the next killer app... unless you replace cows with humans, and alerts with A.I.-picked medical or culinary recommandations customized for your microbiome (expect more A.I. news from SKT, already present with NUGU or Aibril - the latter with IBM Watson -, and recently joined by Hyundai Motor Company, Hanwha Asset Management, and the Canadian Element AI in a USD 45M fund to invest in A.I. and smart mobility).


SK Telecom is already 'building a strong case for 5G', particularly with its rival KT about to showcase its own flavor during the Pyeongchang 2018 olympics. And SKT are not just into testing earlier than others (e.g. recently 4G LTE-5G internetworking, or VR 360 over 5G with Samsung tablet-size device), or even into going commercial earlier than others, but also into building a stronger 5G standard (e.g. recently pushed for 200 Gbps packet swiching), and a stronger technological environment around 5G (e.g. recently 4.8 Gbps WiFi with 802.11ax in Bundang, or 5G-PON / Passive Optical Network distribution).


'Building a strong business case for 5G' will be more fun for marketers. Even if it starts, as usual, like with 3G or 4G, with existing services that will saturate the previous generation anyway, like HD video these days, a booming category if we ever saw one. 

'Building a strong business case for 5G' will also demand a touch of emotion, so I'll finish this focus on SK with their latest ad for 5G. It features an endangered species, Jeju-do's haenyeo (female diver):




mot-bile 2017

Networks: the TIP of Facebook's iceberg

Earlier this year, Facebook gave us a TIP (Telecom Infra Project*) about what could come next for them at the infrastructure level. Most members of the project, starting with Intel, Nokia, SK Telecom, Deutsche Telekom, are also on board of Facebook's much wider Open Compute Project, which also claims top coopetitor Google.

Naturally, Menlo Park wants a front seat for next gen network premieres - typically, early bird SKT is expected to be the first on 5G. But recent announcements*** at the F8 days confirm that the company intends to reach deeper into the value chain to secure and strenghten its leadership, particularly where innovation in network performance can prevent bottlenecks in these pervasive big data / heavy content times.

Terragraph (WiGig WiFi on 60 GHz) proposes ultra efficient W-LAN coverage for dense urban areas. You only need a station every 200 to 250 m. Of course it doesn't provide seamless handover, but a 200 m radius allows you more mobility than your typical hotspot.

Project ARIES (Antenna Radio Integration for Efficiency in Spectrum - MIMO) is more into W-WAN for rural areas. It combines 96 antennas to manage 24 simultaneous data streams, and aims at over 100 bps / Hz compared to 71 in early trials.

Here too, for a fraction of the price of a standard infra...
 
Could Facebook become a non-2-to-5G MNO, or a player in the game of standards? Not so fast. But an even more competitive value aggregator, certainly.

mot-bile 2016

* telecominfraproject.com
** opencompute.org 
*** "Introducing Facebook's new terrestrial connectivity systems — Terragraph and Project ARIES" (Facebook 20160414) 

Korea's fourth license reload

According to The Korea Herald (May 29), the Korean government is considering reviving the project of a fourth MNO license as part of a plan to stimulate the market.

Is there a need for another 4G network? Korea is well covered with LTE to LTE-A, beefed-up locally through pervasive femtocells and WiFi. And the three incumbents don't want to sit on their laurels: Korea Telecom promised 5G trials for the 2018 Pyeongchang Olympics, and SK Telecom announced a partnership with Google on augmented reality ("T-AR for Project Tango").

Is there a need for more competition? It depends on the profile of the new player, and the impacts on a M-VNO ecosystem that, at long last, is biting into a pie still dominated by SK Telecom, Korea Telecom, and LG U+.

According to the Ministry of Science, ICT and Future Planning (MSIP), M-VNOs were claiming a 8.8% market share as of April 21 (up from 2.9% in June 2012), thanks to prices on average 57% cheaper than the MNOs.

But it's not as if you had one fourth player with a 8.8% market share, big enough to contest the leaders on more profitable segments. Today, Korea has 27 M-VNOs, most struggling to make their first profit, and likely to never see it. Significantly, their number of subscribers started to explode when they targeted more discount-seeking audiences (the youth, Chinese migrant workers...).

A perennial candidate for the 4th spot is actually a consortium of M-VNOs: KMI (Korea Mobile Internet) revived their candidacy in October 2013, and defending the existing M-VNO ecosystem could be a stronger argument today. In December 2011, the Korea Communications Commission not only rejected KMI's bid, but also that of IST (Internet Space Time lost the backing of Hyundai Group at a critical moment). Note that the KCC also canceled the auction for the WiBro spectrum. I explained a few months earlier ("A Kbiz MNO ? SMEs vs Korea Inc") how the attempt by the Korea Federation of Small and Medium Businesses (Kbiz) to enter the market looked more like a lobbying stunt to push WiBro.

A much bigger fish could also seek the fourth license, with more brand power. Typically, CJ Group is already a major player in telecom, IPTV, or multimedia contents. It has the money to invest on new networks (Daum Kakao or Naver would need serious backing), the customer bases to leverage, and the contents to fill the pipes..., but don't bet on price wars with fellow chaebol on the juiciest segments. 
 
A true new entrant from overseas? Global MNOs know how difficult it would be in a country where foreign majors are seldom allowed to take or maintain leading positions (see retail for example: Carrefour and Wal-Mart already gone, Tesco on the back seat). But joining a consortium, or creating one remains a rare opportunity for international platforms to push their solutions in an otherwise locked Korean market. And nowadays, the dominant platforms do not necessarily belong to telecom operators...

Anyway, expect more lobbying ahead of the government's guidelines, expected by the end of June.

• See also "Daum Kakao, Google Campus... Korean platforms on steroids", other posts related to innovation in Korea.

mot-bile 2015

* "Consortium to bid for 4th mobile carrier in S. Korea" (Yonhap News - 2013/10/08)

SK Telecom launches LTE-Advanced on Galaxy S4 LTE-A

Up to 150 Mbps? Not bad for a mobile network. That's twice the speed of my old 4G, and we call it 4G LTE-Advanced.

SK Telecom just announced* a launch for July in Seoul, a world first at the commercial level. Russia's Yota did do something last december, but the Korean operator has the handset to go with the network: the Samsung's Galaxy S4 LTE-A.

On SKT's T world shop, this SHV-E330S_32GR sells for KRW 954,800 (USD 826):

Customers will enjoy new services or rather richer / fuller ones: faster, with more splitscreens (up to 6), more HD... and they won't pay a premium for the Advanced speed. For their new, improved, and advanced usages? That could be a different story...

Coverage-wise, SKT plans progressively adapt 20,000 base stations and reach 84 cities, which should mean at least 75% of the population if the said cities are fully covered.

Speed is expected to increase even more next year, when Enhanced Inter-Cell Interference Coordination (eICIC) is ready. For the moment, we'll have to do with "Advanced minus" stuff: Carrier Aggregation (CA) and Coordinated Multi Point (CoMP). It may sound trivially geeky, but for the enduser experience to be as seamless as possible, algorithms do make a difference, particularly in HetNet environments (more geek lingua, this time for Heterogeneous Networks).

Now is this 4.5G, 4.66G, or 4.75G? That's marketing. And not yet 5G. "New generation" usually means new spectrum / new licenses.

Like pornography, you'll know it's 5G when you see it. Particularly if you're in the finance department.

mot-bile 2013
 
* see PR release today: "SK텔레콤, 2배 빠른 LTE 세계 최초 상용화"

joyn or die? forget about KakaoTalk and Anipang?

Remember last year, when KakaoTalk celebrated its 10 millionth user (see "Kakao Talk of the day")?

Well, 1000 days after launch, the Korean player claims 70 M users in 13 languages, with daily averages of 27 M users, 43 mn per user, and 4.2 billion messages. Even if Skype remains far ahead with its 280 M users (and the support of Microsoft* - whatever that's worth nowadays), Kakao Inc. has already become a global phenomenon  - maybe level 5 on Gangnam Style scale - , and remains as ambitious as ever.

The way Anipang on KakaoTalk turned into an instant hit in the competitive game apps arena** probably scared the heck out of pure players (messaging services, VoIP...), not to mention much bigger netcos, starting at home with Daum and Naver, two giants on the Korean market who've - so far - failed to reach international recognition. Note that Kakao Inc. founder KIM Beom-soo is not an outsider: he created Hangame Communications, Inc., and headed NHN after the merger with Naver.

Even top players are paying attention. Sundaytoyz (Anipang's developer) is not Rovio, and Kakao is not Facebook, but I bet many people in Menlo Park start wondering what kind of value the Kakao platform will aggregate after games. And if Big G can leverage its superiority in searches to boost Google Voice (and counter Apple's Siri), the brand itself is not exactly a success.

Of course, the most nervous of all coopetitors are the MNOs, who see their customers use KakaoTalk for their calls and messages, and their own networks, even LTE-enabled, glogged with that booming data traffic. No wonder all 3 Korean cellcos decided to implement joyn, the GSMA's "Rich Communication Services" platform.

To start with, the "joyn" logo is the perfect anti-KakaoTalk: a double black on yellow speech bubble to counter a single yellow on black speech bubble. And RCS brings what operators who cooperate do best: interoperability. As the GSMA puts it in its sales pitch, the solution "delivers an experience beyond voice and SMS by providing them with instant messaging or chat, live video and file sharing across any device, on any network, with all the enabled contacts in their address book".

That's what cellcos will sell to their endusers - something young, sexy, colorful:

But first, the GSMA must convince its own customers, the MNOs, to implement the solution. Everybody must be on board for the promise to be delivered.

So further down the same page, the sales pitch sounds much more defensive and frigthening:

"Don't lose out to OTT  – stay competitive and innovate with APIs

Your consumers are hungry for access to the entertainment and interaction offered by RCS-based apps. Agile and innovative, Over The Top (OTT) providers are exploiting the massive penetration of Smartphones by developing appealing rich communication apps available at little or no cost to the consumer.

Research conducted by one operator discovered a direct link between the penetration rate of cross-platform messaging services and the reduction of outgoing SMS traffic. Without RCS, the decline of voice messaging is likely to be next, as consumers increasingly engage with alternative IP based voice solutions.

Once consumers start using an OTT app service, that offering becomes, for them, the lead brand for communications services. Operators remain more competitive by responding more rapidly to consumers’ expectations and behaviour, and by using RCS to enhance the value of their network and bring richer calls to their consumers."

And those most dramatic final words: "Act now before it’s too late - Implement RCS today!"

Stop pulling your hair out, try this air lotion and stop the airtime loss. We don't guarantee return of love.

And be quick: the end is nigh.


mot-bile 2012

* see "Skype keeps moving, Google googling"
** over 20 M downloads, only on Android (iOS to follow soon)

Face Recognition: When Smart TV Goes Too Smart

Samsung wants to implement face recognition in certain smart TVs. The function is already available for mobile devices but here, the idea is to adapt content to viewers, for instance in order block adult content when a kid is watching (tadaa - how about Junior in his Spiderman costume?). Swiss researchers have been studying the concept for years, but for a monitor equipped with an arm that allows the screen to follow the user (picture yourself in your kitchen with flour all over your hands and the urgent need to browse recipes).

Speaking of mobile and TV and following our previous updates about M-VNOs in Korea*, CJ HelloVision just launched "Hello Mobile" on Korea Telecom, and the country's second MSO could post interesting figures with the contribution of parent company CJ Group, still a food franchise powerhouse but now the country's multimedia leader (CGV, CGmedia, CJ Home Shopping...). CJ already proposes many mobile apps and multiplatform services (ie tving), but expect more e-commerce synergies ahead, particularly following the launch of Mobile E-Mart, also on KT. Homeplus (Tesco-Samsung) also considering entering the arena as MVNO.

Hello Mobile follows Insprit (Enspert tablet on Wibro) and SRoaming (Skype Roaming phone rental), also on KT, still the leader with a little more than 300,000 MVNO lines compared to about 50,000 for SK Telecom. Remember: KT struck the first deals two years ago*.

mot-bile 2012

* see "A Kbiz MNO ? SMEs vs Korea Inc", "Korea Telecom signs the country's first MVNOs", "Korea : Onse Telecom wants to be a MVNO"

NFC goes shopping : live in Seoul

As announced (see "Grand NFC Korea Alliance"), the heart of Myeongdong, a major shopping neighborhood popular among younger generations and Japanese tourists, will be a key test bed for NFC transactions in Korea next month.

This "NFC special district" operation is organized by the KCC (since security is key, the national authority delegated the mission to its KISA unit / Korea Internet Security Agency) and involves all 3 operators (SKT, KT, LGT/LGU+), 9 credit card companies, and key players and enablers listed last June (more are expected soon, particularly in ticketing / couponing applications).

Now for the hard(ware) part ? Terminals are ready on both ends : 100 shops will be equipped with dongles, and enough enduser should be enabled from day one. The NFC payment solution has already been embedded in the Samsung Galaxy S II and other recent models, and rival iPhones can join in thanks to a plug-in developped for Korea Telecom.

Microsoft might join later, but I'm not sure the Samsung Series 7 Slate has already the solution.

mot-bile 2011

A Kbiz MNO ? SMEs vs Korea Inc

The Korea Federation of Small and Medium Businesses (KFSB or Kbiz) wants to join SK Telecom, Korea Tecom and LG U+ (LG Telecom) as Korea's fourth mobile network operator.

This bid looks like a complete joke : a Kbiz-led consortium of 900 small businesses would invest about KRW 100 bn (USD 94 M) in "4G Wibro". How could it succeed where much stronger players failed and where MVNOs themselves cannot thrive* ?

Kbiz claims 2.7 million SMEs, but I don't see this greenfield player take those demanding customers from the big boys.

WiBro, a WMAN technology competing with WiMax, remains a Koreano-Korean thing with a convenient 4G label. Typically, KT is advertising about their "4G WiBro" coverage as SKT launches its LTE as the "real 4G", but eventually all 3 MNOs will implement LTE. Note that KT is also willing to close its 2G CDMA networks and proposing nice 3G/4G plans to die hard users, some of which have been keeping prehistoric handsets because of unbeatable unlimited rates.

Kbiz needs Samsung to propose WiBro, and that could be the actual aim of the game : not the candidacy to a license, but the PR operation behind the announcement.

Samsung is the ultimate chaebol, the perfect symbol of those almighties who rule over Korean economy and are often blamed for the weakness of the nation's SME ecosystem. Worse : they create their own SMEs to benefit from pro-SME incentives and suck even more value from the market. Even LEE Myung-bak, the CEO president who came from Hyundai Engineering and Construction, is campaigning about a 'fair society' where chaebols would allow small fish to survive.

I don't know if Kbiz will really go all the way, or if Samsung will pretend to play their game for image's sake... but Korean market remains fun to observe.

mot-bile 2011

* see "Korea : Onse Telecom wants to be a MVNO", "Korea Telecom signs the country's first MVNOs"...

Grand NFC Korea Alliance

Ten years ago, SK Telecom would carpet bomb Korea with 400,000 terminals ("dongles") to boost its Moneta mobile payment service. Yesterday, Korea Inc. announced 300,000 NFC-enabled Point Of Sales by the end of 2011 to put the country ahead of the pack in this very very strategic sector.

The difference ? This is not a solo act anymore : SKT alone couldn't succeed in setting the new standard in mobile payments at home and pushing the concept overseas, but this time, the whole value chain and ecosystem is following. And if it works, each player will claim a nice slice of a much bigger pie.

Under the regulator's umbrella (KCC, the herald of "NFC-based Mobile Smart Life Services"), over thirty Korean CEOs met at the Seoul Press Center to sign this decisive MOU in Near Field Communications, and if you throw in the members of the recently formed Grand NFC Korea Alliance, you've got the closest thing to a mobile payment dream team :

- all 3 Mobile Network Operators : Korea Telecom, SK Telecom, U+ (LG Telecom)
- the biggest card players around : Visa, MasterCard, Shinan Card, Kookmin Card (KB), Lotte Card, Hyundai Card, T-Money, MNO partners (Hana) SK Card and BC Card (KT)...
- key authorities and associations : KCC, ETRI, TTA, KISA (Korea Internet & Security Agency), MOIBA (Mobile Internet Business Association), RAPA (Korea Radio Promotion Association)...
- top manufacturers : Samsung, LG, Pantech...
- top enablers: UbiVelox, KEBT, MtekVision, 3ALogics Inc, KICC...
- top payment enablers / billing service providers : KSNet Inc, Mobilians, Galaxia, Danal Corp., KCP...

The only players missing on the picture are the endusers.

And as we saw before, pedagogy will be key in a country where hacking happens to be a national pastime (if you include North Korea in the package), where few people protect their handsets with a PIN code, and where distrust in smartphone security keeps spreading like wildfire.

Of course, "Near Field" meaning 10 cm and below, close encounters of the third thief will require more intimacy than via Bluetooth. Besides, many Koreans are already used to contactless micropayments thanks to T-Money (ie Seoul public transportations and taxis, thousands of convenience stores and vending machines...). Furthermore, NFC trials have been under way for quite a while : for instance KT's "Mobile Stamp" couponing system, SKT's Mobile Commerce Zone or Q Store pilots, or cross border trials between SKT's T-Cash and Japan's KDDI and SoftBank...

This MOU aims at multiplying testbeds and giving momentum to the technology, the bulk of the infrastructure being planned for Q4 2011. So where will NFC-based payments be available ? GS group plans to implement them in its convenience stores (GS25) and gas stations (GS Kaltex). Major retailers (Lotte Mart, Emart...) are joining the party. Seoul and Gyeonggi-do buses and subways, as well as many taxis will be converted. A major shopping area for tourists (particularly from Japan), Myeongdong has been identified as a strategic hotspot to feed the buzz.

Needless to say, the number of NFC-enabled handsets is another essential element in the equation. The alliance targets an ambitious 5 M units by the end of the year, leveraging on existing devices (Samsung Galaxy S II and Sky Vega Racer opened the way), and the Google-Apple war : since Android Gingerbread OS supports NFC, Cupertino had to consider it for iPhone 5.

And oh. This non-event : Samsung is expected to surpass soon Nokia as the world's top handset manufacturer.

mot-bile 2011

* sorry, not yet in English : "국내 통신사·금융(카드)사 CEO 최초로 한자리에 모여 NFC 서비스 활성화를 위한 MOU 체결"

KT and Softbank wed in the cloud

Two years after the merger of Korea Telecom with KTF, the group claims 27% of its turnover in the "non-communication sectors", and targets 45% by 2015. "Non-communication" covers "convergence, IT service/media and global operations", which have something to do with communication but nevermind :
- 'Communication' means wired and wireless comms + call centers (KRW 18 Tn in 2010, 22 in 2015).
- 'IT service/media' stretches over 'SI/NI, cloud, solutions, contents', so typically Software as a Service (SaaS)... (evolution 2010-2015 : KRW 2 to 6 Tn).
- 'Convergence' includes 'communication-finance convergence' (KT will absorb BC Card and challenge more directly Hana SK Card or the duo SK Telecom - Hana Card), 'car' (KT Rental), 'security', 'ad/commerce' (evolution 2010-2015 : KRW 4 to 8 Tn).
- 'global operations' collects the rest : 'investment, IT and communication' (!), and probably real estate (evolution 2010-2015 : KRW 1 to 4 Tn)

In this last category, KT intends 'to expand its global markets for Smart City, Cloud, and ICT Solutions', and 'to secure more than ten new business items, such as Smart Home, Smart City and Digital Signage', or to 'develop globally competitive products and services and consider expanding its business worldwide from the launch of a project, as in the case of KT Kibot and CCC'. For your information : KT Kibot is a cute robot.

CCC means, of course, Cloud Communication Center. And that's where Korea Telecom and Softbank decided to create a 51/49 Joint Venture next September : a huge cloud data center will be created in Busan, with a back-up system in Seoul. A smart risk management move from ethnic Korean Masayoshi Son : the March 11 earthquake + tsunami followed by Fukushima meltdowns caused major business disruptions and massive energy shortages. This center will start with a 6 MW capacity (the equivalent to 700,000 PCs or 10,000 servers according to KT), and quickly reach 20 MW. A dedicated 10 GW line will secure the traffic and that's another reason why Korea's second biggest city was chosen : it's very and one of the closest to Japan (210 km or 130 miles), with all the right IT and human connections.

Yet. If Korea is spared by tsunamis and earthquakes, it is frequently attacked by North Korean hackers, and that's the reason why mobile banking and finance, a traditional strong point in the country, is not booming as fast as smartphone sales.

NFC-based Google Wallet* will have to overcome even more resistance there considering the company's image in Korea these days and the intense lobbying campaign from local netcos against its potential dominant position.


mot-bile 2011

* see "Coming soon: make your phone your wallet"

Showing off : Google I/O, World IT Show, Android@Home, Flixster@omized...

More news from Google I/O* :
- Google loves contents and furthermore, how it's conveyed to you : beyond Music Beta by Google (see "Skype keeps moving, Google googling"), "Movie for rent" sounds like the killer app for (or rather against) Flixster & co.
- Android rocks and keeps gaining Gmentum in the hardware and middleware wars : 100 million activated Android devices (+ 400,000 every day), 200,000 apps in Android Market (4.5 bn apps installed from the same joint)
- on the go : handsets and tablets to converge in the Ice Cream Sandwich version of the OS
- in the more "fixed" range : with the Android@Home concept, Android starts sniffing around your place for friendly devices (including the Project Tungsten designed for Music Beta by Google)

... deja vu all over again for Apple, even if Google won't dominate the OS world the way Microsoft did.

More modestly, the World IT Show (WIS) started at the COEX in Seoul, with LG back on tracks (LG Optimus 3-D handsets, 3D TV war on Samsung, who also pushes its Smart TV and its dual core, 4G Galaxy S2), and SK Telecom showing off its own novelties (N-Screen, LTE network, Wibro CCTVs...).

mot-bile 2011

* "Android: momentum, mobile and more at Google I/O"

Apple heart(break)s Samsung

Copycats. That's how Apple sees iPhone / iPad rivals. The main culprit and market share holder with its Galaxy lines, Samsung would have infringed no less than 10 patents, 2 trademarks, and 3 trade dress. As much as it hates suing a good client (Apple devices scream "Samsung Inside" from many angles), Samsung will file a counter-suit for less specific motives.

Nokia, HTC, or Motorola also have two-way legal battles with Cupertino, who also faces lawsuits from H-W Technology, or Robocast.

It's like a poke game : sue me ? suits me: I poke back. Forget hardware, OS, platform, or app wars : lawyer layer's all the rage now, and that's where innovation will come from...

Speaking of upgrades : LTE will be commercialized in July 2011 by SK Telecom and LG U+. Korea Telecom will follow suit (no lawyer needed) the following year : if they haven't decided yet with which infrastructure, they can until then rely on a strong nationwide Wifi presence to absorb the smartphone boom (unlimited wireless data plans include free access to Nespot). LG Telecom is probably eager to switch as quickly as possible to a more universal technology than the CDMA allowed by its own 3G license.

4G in SK ? 3G in NK ! On the other side of the DMC, North Korea's mobile market keeps booming : 430,000 subs EOY 2010, not much for a 24 M strong country, but quite big for a place with so few strong people. Mobility reaches far beyond the first nomenklatura circles : this is the place where not so long ago, only a few priviledged people were allowed to have a radio, locked on official frequencies. Here, suits to be feared are less of the law than of the military kind.

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

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"

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