4th Korean Mobile Carrier
The consortium Korea Mobile Internet (KMI) applied once again for a license to run the country’s fourth mobile carrier, promising to offer cheap mobile rates. The country’s mobile network market is now dominated by three mobile operators: SK Telecom, KT, and LG U+.
The consortium, comprising mobile virtual network operators (MVNOs) that rent networks from existing mobile operators, submitted a bid for a license on November 14 to the Ministry of Science, ICT, and Future Planning (MSIP), which is its 5th try to become the 4th mobile carrier in Korea. KMI plans to use LTE-TDD technology, rather than the original WiBro, to serve as a mobile carrier business.
MSIP will go through a qualification examination of the business approval request within 60 days, based on the documents submitted by KMI, that show whether or not the business fits the policies related to public interests, if it will announce frequency allocation, etc. Also, within 120 days, MSIP will make its final decision after reviewing KMI’s technical and financial abilities, adequacy of user protection plans, and other business proposal reports.
KMI has requested business approval four times since 2010, but failed to earn its business rights as a mobile carrier. It has been criticized for under-qualifying in its financial abilities each time.
This time, KMI set its establishment capital at 853 billion won (US$802 million). If the business is approved, it will establish a corporation and receive 47 billion won (US$44 million) in spot investment, increasing the total capital to 900 billion won (US$844 million). Also, by next year, it will spend another 800 billion won (US$752 million) in foreign investment and obtain additional 400 billion won (US$375 million) domestically through publicly-subscribed shares. An investment company in Hong Kong also agreed to put in 1.2 trillion won (US$1.1 billion), allowing KMI to increase its capital to 2.1 trillion won (US$1.9 billion) by next year.
If KMI earns its business rights, it will provide LTE-TDD services in 85 cities within the country by April 2015. By July 2015, KMI will complete networking down to the district level, beginning nation-wide services.
Rather than providing the services directly to the customers, KMI will lend its networks to companies (affordable phones) trying to provide LTE-TDD mobile services.
KMI will charge a basic fee of 8,000 won (US$7.50) per month, plus 1.4 won (0.132¢ US) per second of calling. It will provide wireless Internet for 30,000 won (US$28.21) per month.
KMI also announced it has signed strategic partnership agreements for LTE-TDD equipment development and provision with Samsung Electronics, Ericsson LG, Nokia Siemens Networks, Huawei, and Alcatel-Lucent.