EarthLink, Korean Operator Creating New U.S. Wireless Company
2005-01-25 21:20:00
EarthLink said Wednesday that it is partnering with Korean wireless operator SK Telecom to create a new wireless operator in the U.S. that will focus on providing advanced Internet services such as streaming multimedia.
The two companies will equally co-own the new venture, which will be called SK-EarthLink. The new company will be a virtual wireless provider, acquiring services from other mobile operators, although the companies did not say from which operator they would acquire the services or when the new service would fully launch.
The executives did say in a Wednesday morning conference call, however, that theirs will be a 3G CDMA network and, in the U.S., the only national carriers offering such service are Sprint and Verizon Wireless. Of those two operators, only Sprint already is providing services to other virtual operators, including AT&T and ESPN. SK Telecom uses CDMA technology in Korea.
Primarily, however, executives in the conference call stressed that the goal of the joint venture is to offer services not currently available in the U.S.
"If you've ever had a chance to visit Korea and Japan and see the plethora of things you can do in the cellular market that don't exist in the U.S., you can bet that some of those that are appropriate are high on the list of things we'll make available to U.S. consumers," Garry Betty, EarthLink's CEO told analysts in a conference call Wednesday morning.
EarthLink's founder Sky Dayton, who will serve as CEO of the joint venture, also stressed how the new company will emphasize new technology.
"In South Korea, kids on the street are using their mobile phones to listen to music, watch TV, video conference, locate their friends and access the Internet -- as well as make voice calls -- as opposed to the U.S. where the mobile experience is primarily about talking on the phone," Dayton said in a statement. "Americans are living in the past. Utilizing emerging 3G networks and harnessing the explosive growth of Wi-Fi, SK-EarthLink will take the wireless experience in the U.S. to a new level."
The executives said that initial offerings starting as early as this summer will include converged devices, such as BlackBerries, that EarthLink already offers to its subscribers. Soon afterward, however, the new operator will offer smartphones and other converged devices as well as PC Card adapters to give laptops access to the 3G network.
The companies projected that the joint venture could gain 3 million subscribers and generate revenues of $2 billion by 2009, which would represent about three percent of the overall U.S. market. The companies also said that they will offer advanced services aimed at high-end, technically comfortable users are most interested. Ultimately, the executives said the new venture will employ between 400 and 500 people.
|
|
Target Pulls Mac From E-store Now you see Mac Mini; now you don't. That was the disappointing experience for shoppers at one major retailer. Retailer Target, which began selling the new Mac mini computer on its online store just days ago, has pulled the product, citing availability issues. Lawyers Bicker Over MSBlast Hacker Prison Time Lawyers in the case of Jeffrey Lee Parson, the teen hacker who pleaded guilty to creating 2003's MSBlast.b worm, are arguing over jail time prior to a Friday sentencing hearing. Shoulder Surfing, Sniffing Worse Than "Evil Twin" Access Points You're more likely to have secrets ripped off at Starbucks from someone snooping over your shoulder or using wireless sniffing software than from sophisticated hackers deploying a so-called "Evil Twin" access point, a security analyst said Wednesday. ABN Amro Unveils Trade-Finance Portal ABN Amro Bank on Wednesday kicked off a new version of its MaxTrad trade finance portal, used by importers and exporters for managing shipping and payment information. ETrade Profits Fall In Fourth Quarter ETrade Financial Corp. on Wednesday reported a drop in profits for the fourth quarter, but posted a big jump in earnings for the full year. Sirius Reports Loss, Despite Increase In Subscribers Sirius Satellite Radio Inc. on Wednesday reported higher losses in the fourth quarter, despite an increase in the number of subscribers for the digital radio network. IBM, BEA Expand Consulting Services For SOAs IBM and BEA Systems Inc. are expanding their consulting services for companies ready to build service-oriented architectures, which leverage web services standards to integrate information technology systems to support business processes. Survey: Slow Adoption Of IT A Threat To Health Industry Slow adoption of IT, followed closely by rising medical costs and the cost of technology itself, are among the most serious threats to the health-care industry, according to a new survey of senior executives released Wednesday. Google Hires Second Firefox Coder On the heels of Firefox's lead engineer Ben Goodger moving to Google, a second Firefox developer has announced he's been hired by the search giant. Juniper, Cisco Hardware Vulnerable To DoS Attacks Products from switch and router makers Juniper and Cisco have fatal flaws that could let hackers craft denial-of-service attacks which could disrupt enterprise networks, government and private security organizations said this week.
|