Samsung Makes Risky Bet on WiBro
Samsung Electronics? strategy of heavily depending on locally developed portable Internet, called WiBro, causes concern among investors. WiBro is a made-in-Korea technology that allows people on the go to remain hooked up to the Internet at the speed of the current fixed-line broadband.
As Kim pointed out, WiBro has many roadblocks to clear before becoming a mainstream format in the era of ultra-fast mobile connection. First of all, Samsung should iron out technical issues such as “handover,?? a disconnection glitch that occurs when WiBro users move between base stations. In addition, the service?s commercial prospects have deteriorated recently, especially in the domestic market as amply demonstrated by the moves of licensees. Hanaro Telecom, the runner-up fixed-line player, gave up its hard-earned WiBro license, saying that the service will eat up about 1 trillion won and not give it back in return.
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