The third generation mobile telecommunication business in Korea

Abstract

The recent progress of the 3G technology and the up-coming 3G mobile telecommunication market environment of Korea were reviewed. On the basis of this knowledge, a simple system dynamics model was constructed. From the analysis of previous Korean mobile plethora, the model found that the network effect was the most important factor for the diffusion of mobile service in Korea. To investigate the competition on of 2G and 3G businesses, a more complicated model was designed. After its results, the initial large number of service contents of 3G will be helpful for expanding its market share for a short term, and the degree of technology performance and social demand is more helpful for a long term business. The model says the success of 30 businesses is quite dependent on how to quickly and effectively switch 2G subscribers into 3G subscribers. To do that just early entree to the market is not going to make a difference from 2G services. The 3G service providers have to decide whether it is right time to start the business by considering the technology performance differentiation from existing technology and the social need for bandwidth simultaneously.