Current mobile communication technology has come a long way from first generation analog system to 3.5 generation HSDPA. Soon we will even be able to download large movie files within just few seconds with development of 4th generation technology. In the meantime, South Korean mobile communication companies are playing different cards to gain upper hand in the battle.

In recent, domestic Korean mobile communication market is hovering over EV-DO Rev. A (or revision A) pushed by LGT. The LGT raised white flag on current synchronous IMT-2000, 2GHz frequency operation and came out with 2.5 generation ‘Revision A’ as its winning card to compete with 3rd generation technology WCDMA and HSPDA pushed by its rival SKT and KTF.


LGT’s CFO Kyung-Re Chung from its 2nd qtr. performance announcement said, “LG Nortel hardware are in development for the Revision A and with close cooperation from Qualcomm will allow introduction of the Revision A phone by 2nd qtr. of 2007.”

Upon intimation of initial approval from Ministry of Information and Communication for introduction of the LGT’s new Revision A from its current 1.8 GHz system, it has raised negative reactions from both KTF and SKT. These two companies have to invest more than 3 billion dollars each to construct their 3rd/3.5 generation service infrastructure comparing to LGT’s Revison A requiring only about 200 to 300 million dollars.

Especially in KTF’s case, it is showing anxiety. It came out with 3rd generation system to compete against the SKT’s dominance in the market but with approval for the impending Revision A, SKT with its already exiting EV-DO networks and its previous successes in the market could gain advantage in the 2G and 3G markets. However, SKT announced, “There is no plan with Revision A, we will concentrate just on HSDPA.”

Advent of 3.5G 18.4 Mbps data transmission era
Mobile communication companies, each having different generation technologies, are naturally showing sensitive reactions to any 4th G news. It is understandable about the chaos in the industry considering all the investment and profit margins with long-term outlook they have to deal with advent of the 4th G market.

The mobile communication technology first moved up from 1st generation analog to digital voice. In Korea’s case, the government has been supporting the synchronous CDMA since it first commercialized the 2nd generation technology before other countries, but with current global preference over asynchronous method, the 3rd generation IMT-2000 is making the transition to the asynchronous method.

If we categorize GSM (asynchronous) and CDMA (synchronous) as a 2nd generation technology, next up 2.5 generation (voice & data) is GPRS (asynchronous) and CDMA 2000 1x and EV-DO (synchronous).

In addition, recently, SKT and KTF just came out with new services with DSDPA (3.5G) and WCDMA (3G), both, which are asynchronous methods. With the new WCDMA service, it will be sharing industry standard 2GHz frequency channel to further help with overseas roaming services and HSDPA will allow 18.4 Mbps high-speed data transmissions.

LGT- efficiency Vs. SKT & KTF - Reliability
The issue at hand is with EV-DV, which is 3rd generation, IMT-2000 synchronous method. This also got pushed out of picture due to LGT deserting its existing 1.8 GHz going with the 2.5-G Revision A system.

LGT bill greatly benefit from using its existing PCS phone frequency channel, which will cancel out need for extra investment for new equipments. Much improved 3.1Mbps data transmission speed is also added bonus for them considering not much difference with asynchronous, 3G services. LGT’s affiliate said, “emerging new technologies are enabling 1.8 GHz to 3G services possible. It’s like a small family getting a 3 bedroom house instead of wasteful 4 bedroom house, giving choice which will bring up efficiency level for the next generation technology.”

That is why KTF is most concerned with its investments in HSDPA and coming of Revision A. KTF said,” If and when 3G Revison A will share the existing bandwidth, companies like KTF and SKT who made hefty investment for the project will most likely get dissatisfied with reliability of the channel.”

Coexistence of 3.5G with 2.5G could hurt the future development
What’s more, there are hardware shortages with HSDPA and New services, which won’t be solved until the end of the year. Looking at LGT’s roadmap, with introduction of its Revision A in 2nd Qtr. of 2007, it can possibility hurt the 3.5G and 2.5G services to even slowdown development of newer technologies in Korea.

HSDPA with other new services are still in infant stage and its data transmission rate compare to Revision A isn’t all that superior. However, with advent of newer technologies we will see a gap developing and also distinction of the overseas roaming service cannot go unnoticed

An affiliate from the related industry said, “Korea, as a global leader in mobile technology will have to lead world to 4th generation technology. It should not hover over 2nd generation technology to cloud the water.”