SK Telecom launches SIM cards that add NFC to existing phones

Korean mobile network operator SK Telecom has announced it will make available near field communications-enabled subscriber information modules that enable existing mobile phones to be turned into NFC devices by simply replacing the existing SIM with one of the new NFC USIMs.


The new NFC USIM will be available in October 2011 and SK Telecom will release a developer API at the same time. The new SIM is expected to cost $30 to $40.

The company plans to launch the product out in October 2011 for enterprise customers in Korea. This will be followed by roll out in overseas markets including China to accelerate the spread of mobile payment infrastructure.

SK Telecom launches SIM cards that add NFC to existing phones

SK Telecom to Launch LTE Network in July 2011

SK Telecom plans to begin providing commercial 4G Long Term Evolution services in Seoul in July 2011 and later upgrade its LTE networks in 2013 to LTE-Advanced (LTE-A), repurposing its second generation frequencies in the 800 MHz bands. The LTE-A upgrade will offer speeds up to 75Mbps downlink speed and 37.5Mbps uplink speed on 10 MHz of spectrum

SK Telecom also is upgrading its 3G network in April 2011 to HSPA+, the fastest 3G version and operating at speeds the International Telecommunications Union says are officially "4G" networks.

As other LTE providers have done, SK Telecom plans to launch 'LTE data modem handsets' in July this year at the time of LTE commercialization and expand its LTE handset lineup to smartphones and tablet PCs within the second half of 2011.

First, SK Telecom will adopt its own cloud-based network technology named Smart Cloud Access Network (SCAN) to set up its LTE network. With SCAN, SK Telecom successfully separated Digital Unit (DU) and Radio Unit (RU), the two main components of a base station. DUs will be stored together in one area, while Remote Radio Units (RRU) - along with the antenna - will be set up in various locations, thereby enhancing network operation efficiency. Also, with full-fledged application of cloud computing technology, the network will be able to flexibly and seamlessly handle mobile data traffic that varies by time and region.

The company plans to expand its LTE coverage to 23 cities including the Seoul metropolitan area, providing nationwide coverage (82 cities) in 2013.

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Ironically, Low Prices are a Barrier to Mobile VoIP

SK Telecom says it has no plans to allow its smartphone subscribers access to VoIP calling, saying it will deal a blow to its revenue, reports the Korea Herald.  That's true, but also likely unsustainable. All it would take is for Korea Telecom to allow it and SK Telecom would have to relent.

Oddly enough, it appears low prices are a problem. An SK Telecom executive says that AT&T and Verizon can afford to allow VoIP because both those carries make enough money with their broadband and voice tariffs to allow cannibalization of legacy voice revenues by VoIP.

Oddly enough, this is a case where higher prices would lead to more innovation. U.S. carriers are moving about as fast as they can to create broadband-driven revenue streams so voice can be cannibalized.

Mobile VoIP is a sensitive issue for SK Telecom precisely because its tariffs are low. "Mobile VoIP will destroy our profit-making structure," Lee Soon-kun, senior vice president of SK Telecom, says. At the same time, Korean mobile providers face mounting pressure to lower tariffs on legacy calling.

Under the "per-second" scheme, which will take effect on March 1, 2010the carrier will charge for every second, instead of every 10 seconds. Under the current system, consumers have to pay for a full 10-seconds of calls, even if they have not been connected for all of that time.

The revamp is expected to lead to a tariff cut of 700 won and 800 won per subscriber on average, SK Telecom said, adding that all of its 25 million subscribers would be able to save a combined 201 billion won ($1.8 million) a year.

SK's move put its rivals KT and LG Telecom under growing pressure to follow suit.

Broadband prices that are too low--basically unable to support the entire cost of running a mobile network--would seem to be a problem for widespread mobile VoIP in the Korean market.

24 Carriers, 3 Handset Vendors Launch 3 Billion User App Initiative

A new consortium already including 24 global mobile service providers, Sony, Samsung and LG are creating a new applications community, allowing developers to create apps working across networks serving three billion people.

The new "Wholesale Applications Community" is a recognition of the role application stores now playing in fostering new applications and a great deal of the value of mobile broadband services.

América Móvil, AT&T, Bharti Airtel, China Mobile, China Unicom, Deutsche Telekom, KT, Mobilkom Austria Group, MTN Group, NTT DoCoMo, Orange, Orascom Telecom, Softbank Mobile, Telecom Italia, Telefónica, Telenor Group, Telia Sonera, SingTel, SK Telecom, Sprint, Verizon Wireless, VimpelCom, Vodafone and Wind, as well as Samsung, LG and Sony Ericsson are founding members.

Whether directly or indirectly, by design or by default, the new development community will compete with the Apple App Store as well as other app stores being created by Google and other device and application providers.

The real carrot for developers, if the initiative can iron out any number of important details, is access to a potential audience of three billion mobile users. In practice, discrete markets will be smaller, limited by natural language communities, for example. But it is an ambitious initiative showing access providers are not interested in forfeiting their roles in the application ecosystem to other handset or application providers.

Sprint Turns Down $5 Billion

Sprint Nextel Corp. has rejected a $5 billion investment by South Korea's SK Telecom Co. and buyout firm Providence Equity Partners Inc. that would have brought back former Chairman Tim Donahue to run the mobile-phone company, according to Bloomberg.

The investment group reportedly proposed buying Sprint securities that would later convert into equity for 20 percent to 30 percent more than the current stock price.

Sprint's board apparently didn't meet with Donahue or the investors before turning down the deal, nor does it appear SK Telecom and Providence were interested in a hostile takeover.

SK Telecom to Carry Helio

SK Telecom says it will invest up to an additional $270 million to support Helio, effectively signaling that Earthlink will not be investing further in the joint venture. So the issue is how Earthlink can exit the joint venture.