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S. Korea: Telecom and Electronics Sectors Face Change |
| Source: |
koreaherald.com |
| Source Date: |
Friday, December 31, 2010 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
Korea (Republic of) |
| Created: |
Jan 04, 2011 |
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The country’s telecommunications and electronics sectors are expected to once again go through dramatic changes this year, with the rapid introduction of a greater pool of gadgets.
If smartphones were the hottest electronics items last year, the scope is projected to further expand to tablet PCs, 3-D and smart televisions as well as other smart devices like home electronic appliances.
“More people will be commonly using smartphones in 2011 as we expect the number of smartphone as well as tablet PC sales to go beyond 10 million and 1 million, respectively, making the ground concrete for a new device segment,” said David Kim, president of ROA Group Korea.
Samsung Economic Research Institute also said in its outlook report for this year that the global distribution rate for smartphones will maintain to grow over 20 percent in 2011, recording the highest growth rate in the mobile market.
The two industries saw a huge jump when KT Corp, the nation’s top fixed-line service operator, brought in Apple’s iPhone earlier in November 2009. Local electronics giants, such as Samsung and LG Electronics, strived to follow closely behind, unveiling their flagship phones like Galaxy S and Optimus One.
Microsoft is now getting ready to release the long-a waited Windows Phone 7 in Korea this year, trying to grab a larger slice in the local market that is already highly saturated.
Second-tier competitors like HTC, Motorola and Pantech are also ratcheting up their marketing and advertisement, enabling local consumers to access a wider range of smartphones.
“A more variety of affordable smartphones will be offered, officially diversifying the smartphone segment,” said Kwon Ki-duck, a researcher at SERI. Kwon added that the demand for new high-tech devices like tablet PCs ― which could be used for many different purposes like education and gaming ― is also expected to surge as not only PC manufacturers but more smartphone makers are also joining the competition.
With the increasing number of smartphone users comes the rise of social media, such as micro-blogging site Twitter, Facebook, Cyworld and MeToday.
As of October, the numbers of people in Korea who log onto Facebook, Twitter and MeToday reached 1.7 million, 1.8 million and 2 million, respectively.
Studies have found that about 46 percent of Twitter users regularly log onto the website through their mobiles, indicating that the surge in the user figure will continue this year.
The switch from a feature phone to a smartphone is also deemed to become an easier decision for people as the Korea Communications Commission, the state media policy-making body, has decided it will temporarily allow people to stick to their old mobile numbers for up to three years.
Telecoms are scheduled to get rid of the 2G networks built across the nation by 2018.
This means that people who currently have cell phone numbers with prefixes “011,” “016,” “017,” “018” and “019” will have to unify it to “010.”
Other than the new rush of mobile phones and related policies, people will have a wider channel selection as the new TV channel operators selected by the judging committee of the KCC will be set to feature new programs in the latter half of this year.
Getting the TV licenses was among the most attention grabbing issues for last year, which was proved by a large number of influential newspaper companies ― including Herald Media, Chosun, Dong-a, JoongAng Ilbos and Maeil Business ― applying to get them. A total of 11 groups, including 10 media groups and a major business group, have submitted applications.
Aiming to increase the global competitiveness of the local media industry and give a boost to the contents market, the new TV channel operators are expected to provide a more variety in the programming for their viewers.
“A media big bang will soon hit the market,” said KCC chief Choi See-joong.
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