KTF Co. to Ditch Qualcomm's BREW for WIPI Technology

Strategic Insights -

South Korea's second-largest mobile operator, KTF Co., has announced plans to adopt wireless Internet platform for interoperability (WIPI) technology, dealing a significant blow to Qualcomm Inc.'s binary runtime environment for wireless (BREW) software. As of July, all new handsets sold by KTF will be equipped with WIPI technology, in line with the Korean government's plan to promote interoperability among the country's three mobile phone operators. This decision is seen as a strategic move by KTF to reduce its dependence on Qualcomm's BREW platform, which has been used by the company for years to provide mobile applications such as ring tones and games to its 10.5 million customers.

Key Takeaways:

  • KTF Co. will start using WIPI technology on all new handsets sold as of July, in compliance with the Korean government's plan for interoperability among mobile operators.
  • The company has been using Qualcomm's BREW software for its mobile phones, with 5.7 million customers currently using BREW-loaded cell phones.
  • KTF has paid an undisclosed amount in royalties to Qualcomm for the use of the BREW platform, which will likely cease once the company switched to WIPI technology.
  • The adoption of WIPI technology will promote interoperability among South Korea's three mobile phone operators, reducing inconveniences for users to exchange multimedia messages with subscribers to different operators.
  • Qualcomm's Korean affiliate has not commented on the development, but the company's plans to expand the use of BREW in South Korea have been dashed by the government's decision to make WIPI technology compulsory.
  • The move is seen as a strategic decision by KTF to reduce its dependence on Qualcomm's BREW platform and align with the Korean government's plan to promote WIPI technology.
  • South Korea's wireless market leader, SK Telecom, has previously announced plans to adopt WIPI technology, and last week unveiled two WIPI-equipped cell phones.

Statistics:

  • 5.7 million KTF customers use BREW-loaded cell phones.
  • 10.5 million customers are subscribed to KTF's mobile phone services.
  • KTF has paid an undisclosed amount in royalties to Qualcomm for the use of the BREW platform.
  • South Korea has a 34 million-strong wireless market, with SK Telecom claiming more than half of the market share.
  • 13% of the world's wireless chips and mobile technologies are sold by Qualcomm Inc.