SK Telecom’s 3G launch could be held up while the company gauges the public interest in the next generation of mobile services. The South Korean giant is now considering launching the service in 2004, a year later than originally planned.
SK Telecom, while enjoying a positive Q1, has watched DoCoMo’s Japanese 3G service struggle. Japan’s DoCoMo has seen little success in its 3G services, said SK’s senior investor relations manager, Song Sung-ho.
We will discuss the delay in our 3G services with the government as it requires its approval, Mr Song told analysts
DoCoMo’s 3G service has had difficulty attracting customers. Since its October launch 89,000 people have signed up to the service, significantly less than the 150,000 planned.
Despite the delay SK is optimistic about its prospects. The company has predicted a rise in Q1 net profits and a 10% to 20% growth in full-year earnings.
Our first-quarter earnings will be slightly better than the same period a year ago, said Cho Sung-hae, vice president of investor relations. EBITDA (earnings before interest, taxation, depreciation and amortization) margin remains at around 50%.