Systems sector controlled by three companies: Ericsson, Nokia, and Huawei
Strengths in world-class wired and wireless communication infrastructure and terminal device companies

The Ministry of Science and ICT released Technology Roadmap 2022 (draft) adding 10 major ICT R&D technology fields and artificial intelligence field. The 10 major ICT R&D technologies selected by the Ministry for strengthening mutual linkage of science and technology ICT and discovering new industries are: ▲digital content ▲convergence services ▲ICT devices ▲information security ▲mobile communications ▲networks ▲broadcasting/smart media ▲radio waves and satellites ▲foundational SW computing ▲software. Accordingly, e4ds news plans to introduce R&D strategies in these fields sequentially and present future technology development roadmaps. [Reporter Shin Yun-oh]

Domestic mobile communications industry is a national strategic core industry with significant forward and backward linkage effects driving economic growth, accounting for 21.7% of total ICT production value (2014).

In the terminal device sector, Samsung Electronics leads while Apple's pursuit and China's rapid growth stand out. In Q1 2016, global smartphone market share was Samsung Electronics (23.6%), Apple (15.3%), Huawei (8.5%), Xiaomi (4.7%), and Lenovo (4.4%). In 2015, domestic smartphone market share was Samsung Electronics (46%), Apple (33%), LG Electronics (14%), and others (7%)

In the systems sector, three companies—Ericsson, Nokia, and Huawei—dominate the global market. Aside from Samsung, the industry consists of small and medium-sized enterprises with a domestic-focused structure, with domestic manufacturers holding 43.6% (2014) of the domestic mobile communications equipment market share. In the services sector, most global operators provide 4G services, with 360 operators supporting LTE services. As of 2015, service penetration rate stands at 11.5%.


▲The global mobile communications market that will realize ultra-immersive services with Gbps-class and above in future 5G/B5G is projected to record an average annual growth rate of 4.6% until 2022.
(Photo shows the recent launch of Galaxy Note7 which has been attracting sensational popularity)

Mobile communications is a high value-added technology that provides customized immersive services and new convergence services to all users through high-speed, high-quality mobile communications systems, service platforms, and portable multi-functional devices, where people, objects, and information are organically connected anytime, anywhere.

Mobile services that understand me without being asked what I want, mobile networks that follow me everywhere, and devices that are always with me—these fall within the scope of mobile communications.

Domestic mobile communications market expected to reach 34-35 trillion won total in 2016-2022

Mobile communications technology is currently a sector with significant growth potential due to explosive wireless traffic growth, IoT expansion, and new technology and service demands. Domestic mobile phone traffic reached 200,000TB per month (March 2016), an 8.3-fold increase compared to four years prior, with video comprising 57.6% of total traffic. Gartner reports that global mobile traffic will increase by 55% annually over the next five years.

IoT expansion is also broadening the mobile communications industry. As connectivity expands from people to objects, the number of connected objects is expected to reach 50 billion by 2020. IoT-dedicated operators have emerged and 3GPP standards are being established. New technologies including immersive services such as AR and VR, cloud networks, autonomous vehicles, and disaster safety networks have appeared, with SDN/NFV gaining attention through optimized network configuration via flexible resource management.

From voice (2G), data (3G), and video (4G) to future 5G/B5G realizing Gbps-class and above ultra-immersive services, the global mobile communications market is projected to grow at an average annual rate of 4.6% from 1.4 trillion dollars in 2016 to 1.8565 trillion dollars in 2022. The domestic market is expected to form a total market size of 34-35 trillion won during 2016-2022.

Emerging nations including China improving product competitiveness and expanding market influence

Domestic mobile communications industry possesses world-class wired and wireless communication infrastructure and has global leading mobile communications terminal device companies. Additionally, forward and backward linked industries such as semiconductors and displays are strengths.

However, high overseas dependency on core terminal components such as modems and RF chips has been identified as a problem, and the industry is failing to lead the mobile ecosystem including open platforms and mobile software. Weak global competitiveness of small and medium-sized enterprises is also an issue. Moreover, emerging nations including China are improving product competitiveness and expanding market influence, and overseas global companies are leading core technologies—these are also threat factors. Burden from increased royalty payments and patent issues is increasing.

The domestic industry is noted as needing to continuously expand demand through emerging nations' telecommunications industry development, increase consumer demand for high value-added terminal products, and expand demand through convergence of wired and wireless markets and linkage with other industries.

The government has set a vision of "achieving world-leading global competitiveness in mobile communications industry." Park Hyun-chul, CP of the mobile communications sector, stated "We have set goals to provide world-first 5G trial service in 2018 and world-first commercial service in 2020," adding "We will also secure core fundamental technologies for B5G mobile communications systems and future mobile devices by 2022."

Looking at priority R&D areas by terminal components, systems, and services for this purpose, first, terminal components will receive concentrated investment in △convergence-integrated multi-functional RF and antenna technologies △convergence-integrated multi-functional modem and AP component development. The systems sector will focus on △B5G mobile communications △convergence intelligent mobile communications systems △5G mobile communications technology development. The services sector will prioritize △ultra-connected mobile convergence intelligent services △mobile hyper-reality services △ultra-natural wireless communications services for ultra-high-speed moving objects △user proximity service platform technology.

Park Hyun-chul, CP, stated "For terminal components, the R&D promotion strategy is to nurture 5G-based future terminal core component industries and maintain government investment; for systems, to secure 5G/B5G core fundamental technologies, foster equipment industries, and strengthen government investment," and explained "Finally, for the services sector, the promotion direction is to secure user-centered convergence intelligent mobile services core technologies."