hankyoreh

The nation’s three mobile phone service providers continue to balk at carrying digital multimedia broadcasting (DMB) service, which enables users to watch real-time broadcasts through their mobile phones. The lack of interest, stemming from weak profits, runs counter to the fact that phone manufacturers are increasingly developing DMB-enabled phones.

After SK Telecom Co., the nation’s largest mobile carrier, started its satellite DMB service last year, KTF Co. and LG Telecom Ltd. responded with a terrestrial-signal-based system early this year. SK Telecom switched to a similar ground signal DMB service in May of this year. With DMB service launched at all three service providers, phone manufacturers in turn have responded with an array of high-end handsets enabled for the service.

Unlike satellite DMB, however, ground-based DMB does not charge customers, so mobile carriers have no way to make profit from it. Originally, the carriers had planned to charge around W3,000-4,000 (US$3-4) for the new service, but they gave up the plan in the face of opposition from the broadcasting community. In spite of no major source of revenue, KTF and LG Telecom stepped up their efforts to attract ground-based DMB subscribers in a bid to counter SK Telecom’s satellite DMB. But when SK Telecom launched its own free terrestrial DMB in March, the two smaller mobile carriers lost market differentiation and the free DMB became an ’unprofitable necessity.’

DMB is also thought to erode revenue from other services because subscribers spend more time watching TV and less time using services lucrative to service providers, such as mobile Internet and online games.

"Terrestrial DMB will lack merit until it creates a means for profit, such as an interactive data service," an industry official said.

Customers have lost interest in the service, as well. After reaching a subscription peak of 22,800 in June, the number of subscribers for SK Telecom’s terrestrial DMB has continued to fall, with 21,300 in July and 14,790 in August.

These sluggish market conditions, however, come in contrast to what mobile handset makers are producing. Manufacturers have in recent months unveiled an array of DMB-enabled phones. By the end of this year, they plan to roll out three to five more DMB-enabled models.

"As mobile phones have become a key device for daily entertainment, DMB service is becoming a fixture, much like the camera phone," said Lee Ki-tae, the president of Samsung’s mobile phone division.

Recently, Samsung Electronics, the world’s third-largest mobile phone maker, introduced a DMB-enabled slim phone model with a price tag of around W500,000. LG Electronics Inc. also launched a slide-type DMB phone that weighs 106 grams, lighter than existing models that can carry the service. "Admittedly, mobile operators remain reluctant in terms of offering terrestrial DMB service. But they will have no choice but to continue to provide the service, as customers want it," an LG Electronics official said.

Currently, terrestrial DMB broadcasts are available only in the Seoul metropolitan area, with a plan for a nationwide launch by the end of this year. However, prospects are not bright for this launch date, as conflicts have developed over the logistics of such a move.