In recent, there are active developments in overseas cell phone roaming service market. Beside the three main mobile communication companies, others are popping up; anticipate high competition in the market.

Current global business era is bringing rapid increase in number of overseas roaming service users, giving the users ability to place and receive calls with their own mobile number. It is estimated that there are total 1.75 million (SKT 1,378,000, KTF 170,000, LGT 58,000 and others) overseas roaming service users with three main domestic mobile telecom companies within the fist half of this year.

Especially with the coming vacation seasons in July’s overseas backpack trips, August’s international vacation travels and extended holidays in September, the latter half of the year should bring in even more users. There were 2.33 million users in 2005 but the industry expects that number to surpass over three million in this year.

SKT: clear, KTF: will clear up, LGT: gloomy
SKT, KTF and LGT are the three main companies offering the overseas roaming service currently with about ten other minor companies in the market. Auto roaming service is only possible with SKT where others require special overseas-equipped phone rentals to use their services.

Out of these carriers, the market leader of course is the SKT, thanks to assigned 800MHz frequency; it does not need to offer special phone rentals to their customers. With that convenience reason, it is enjoying the most market shares.

KTF is showing rapid growth in recent. It is showing 100% growth rate with respect to 20,000 users in last year with 17,000 users in just first half of this year alone. In addition, with active WCDMA auto roaming in end of this year or early next year should bring even higher growth rate.

KTF’s dept. manager Seungwoo Lee said, “we expect steady growth with year’s overseas roaming sales target of $2.5 Mil and even though we have much smaller users comparing to SKT now but with coming WCDMA next year, our overseas roaming service will become much convenient for the users.”

But in LGT’s case its much more disadvantageous. Compare to the $8.4 million (1/10 of SKT’s) sales output last year, its only showing 57,900 users in first half of this year. What’s more, they adapted 1.8GHz from its existing 2.0GHz recently and that will not go hand in hand with WCDMA.

In need of more customer choices and less service fees
As you see, the overseas roaming market is showing increasing prospects. However, there is much to be worked out yet too. Precisely, the outrageously high service fees and limited customer choices available in the current market.

SKT is offering services with its three companies, SK Tel-Link (00700), Hanaro Telecom (005) and Daycom (002) but its users are mostly using preprogrammed SK Tel-Link and missing opportunity to save cost by using 28 to 61 percent less costly Daycom or Hanaro Telecom services. The users are free to choose but lack of publicity for the available numbers is still hurting the overall market.

An affiliate from SKT said, “SKT is linked to SK-Tel-Link but unlike other companies we offer choices to the customers. The Daycom is only offering lower rates because of their recent start of operation and its current running promotion to attract new members. SKT only handles the wireless calls and have no-say over international rates what so ever.”

Beside this, KTF uses its international phone service company (00345) and LGT uses its affiliate Daycom (00388) so the customers really do not have much choice with them too.

One industry affiliate said, “Probably only thing that showed a price drop in past ten years is overseas phone calls. It’s true its been showing lack of luster till now but with its current scale that can surely move the market, an industry leader like SKT should first lead the way with lowering overseas roaming rates.”

Meanwhile, there are concerns being raised with other communication companies that are popping up everywhere. These companies offer leased roaming services with contracts from overseas local providers therefore without any quality issues. However, running business at airports without a booth or with unrealistic rates is a problem that related industry should look into. If not, it can hurt the industry.