LG Telecom, which is the third largest wireless company in Korea, is now launching its 3G service in coming April. March of last year, other two major wireless companies, SK Telecom and KTF (Show), introduced Korea's first 3G services, and the sale has been increasing greatly; according to the article, out of 44 million cellphone users, 17.7% of them are now using 3G services through either SK Telecom or KTF.LG telecom named their 3G service "OZ," which stands for "Open Zone," representing open internet space for people to surf internet with their cell phones. Unlike other two carrier's typical HSDPA network, OZ is extended or upgraded network of CDMA, which is called Revision A. The installation of the network was completed last month, and now it's ready for the service.
Through this service, LG Telecom plans to offer internet function almost as same as the one we use on our personal computers; it will allow users to send e-mail and browse internet as well as video phoning which other two companies are leading the market now. However, LG Telecom will likely to promote more on its internet service than video phoning because, according to the article, "There appears to be no substantial demand for video phoning."
One way that LG Telecom is going to differentiate their service is by providing lower price rate for the internet service than SK Telecom or KTF, and it will be introduced in next month. Also, to maximize its new service, LG Electronic is going to release a wide touch-screen cell phone with high resolution to express detailed view and smooth operation, which enables to have full-browsing function of internet.
I’m currently using 3G cell phone from KTF, and ever since I bought it last year, I’ve hardly used the video phone function, because first of all, it’s as twice as more expensive than regular phone call and more importantly, I still feel very awkward having a conversation face to face on the phone. Both KTF and SK Telecom are pushing its 3G service through heavy advertisement and lowering the price of the cell phone; however, not that many people are actually using the function unlike the carriers have expected. If, on the other hand, LG Telecom introduces reasonable pricing rate for their new 3G service, OZ, with appropriate devices, I believe that LG would have a great potential to be a new leading carrier in the market. Including teenagers, people these days are eager to have more ways to enjoy varieties of multimedia, and in my opinion, one way for OZ to be successful is to manage that demand.
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