SK Telecom Launches 3G Network Video Service For Cell Phones

 

SEOUL -(Dow Jones)- South Korea's largest wireless carrier SK Telecom Co. said Monday it has launched a mobile service that utilizes third- generation, or 3G, wireless service network, allowing subscribers to receive live television reports, streaming video and music-on-demand services on their cellular phones

 

SK Telecom will charge 25,000 won ($1=KRW1,211.8) a month for the service dubbed "June," which will allow subscribers unlimited use of video-on-demand content until February, the company said in a statement.

Currently, there are 15,000 customers subscribing to the service, a spokesman for SK Telecom said. The service promises streaming video at a download rate of 256 kilobits a second, the spokesman added.

3G technology generally refers to a system that offers Internet access, multi- media, voice, video and data services at a download rate of 300 kilobits a second.

South Korea and Japan have aggressively invested and introduced faster and more advanced phone services where users can download music and movies easily and swap digital still pictures on their handsets. Japan's NTT Docomo Inc. ( J.NTX) began 3G services in October 2001.

SK Telecom officials said the company has invested an additional KRW30 billion solely for content development for the "June" service, which is provided on a CDMA 2000 1x EV-DO network - an upgrade from the 2G code division multiple access, or CDMA technology developed by Qualcomm Inc. (Q.COM). Currently the service is only available on Samsung Electronics Co. (Q.SSE) handsets.

SK Telecom has spent about KRW400 billion so far on its EV-DO network, said the SK Telecom spokesman.

Separately, SK Telecom is targeting the launch of wide-band code division multiple access, or W-CDMA service - another 3G mobile service - in the fourth quarter of next year, the spokesman said.

Shares of SK Telecom closed Monday at KRW252,000, up KRW7,000, or 2.9%.