By Allen Tsai | Fri Mar 25, 2005 11:22 am |
EarthLink, the nation's next-generation Internet service provider, and SK Telecom, Korea's leading mobile communications company, announced a definitive agreement to form a joint venture to market wireless voice and data services in the U.S.
The new entity, to be called SK-EarthLink will be a nationwide mobile virtual network operator (MVNO). The joint venture marks SK Telecom's first ever strategic partnership to enter the U.S. market to grow its worldwide subscriber base. SK Telecom is one of the world's most advanced wireless carriers, with more than 18 million customers and over 50 percent of the mobile services market in South Korea. The Seoul-based company offers state-of-the-art wireless voice and data offerings including interactive gaming, video streaming, and location-based services.EarthLink has more than five million subscribers and has been a leader in delivering award-winning Internet services for 10 years. Most notably, EarthLink is the first major ISP to offer a permission-based spam-fighting feature and other innovative tools that block pop-up ads, spyware, and phisher sites. EarthLink was also the first major ISP to become an MVNO, beginning with a wireless data service in 2000, and then launching a wireless data / voice solution in 2004. "This partnership reflects 30 years of combined experience that EarthLink and SK Telecom have gained anticipating and delivering innovative Internet applications and wireless services," said Garry Betty, EarthLink president and chief executive officer. "SK-EarthLink has the potential to reshape the mobile communications market by meeting the growing demand of U.S. consumers who are currently underserved by existing voice-oriented wireless operators." "SK Telecom is committed to shaping the information and telecommunications world of the 21st century. This joint venture is a continuation of SK Telecom's commitment to provide the most innovative world-class mobile communications technology," said Shin Bae Kim, president and chief executive officer of SK Telecom. "The wireless and Internet worlds are colliding, and neither will be the same again," said EarthLink founder and director Sky Dayton who will serve as chief executive officer of the SK-EarthLink joint venture. "In South Korea, kids on the street are using their mobile phones to listen to music, watch TV, videoconference, 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. 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."
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