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The Electronics Times
Monday, October 11, 2004
By Kim Yong-seok


SK Telecom and NTT Docomo, the largest wireless communication carriers in Korea and Japan, respectively, agreed to collaborate in mobile banking service sector.

Industry sources said on October 10 that the two leading wireless communication players concluded an accord to form a consultative body for jointly developing mobile banking service targeting world market.

The two firms plan to select partners, including solution makers and financial service firms, and to begin in November holding working-level meetings after having a preparation conference in October in Seoul.

Under the accord, the two partners will provide mobile banking roaming service in Korea and Japan after NTT Docomo expands mobile settlement service. NTT Docomo is presently offering mobile settlement service, dubbed 'Felica' service, but it is confined to transportation card settlement, excluding mobile banking and credit card payment service.

They will also develop new business models based on application services such as electronic cash, compatibility of transportation cards, and mobile tickets. In addition, the two firms will set up a joint venture to export mobile payment solutions and mobile banking service to third countries including China and India, while establishing related technologies such as mobile settlement systems and chip driving virtual machines as de facto world standards.

SK Telecom and NTT Docomo also decided to open the consultative body to solution companies and financial service firms in Korea and Japan, while not allowing other communication service firms to participate in it for a certain period of time. The alliance will be joined by the Korea Electronic Payment Association.

Industry observers expect the collaboration between SK Telecom and NTT Docomo to serve as a catalyst for augmenting their position in the world market and in standardizing technologies in mobile banking segment. Currently, the Open Mobile Alliance (OMA) is playing a leading role in standardizing wireless Internet technologies, but little efforts are made for standardizing mobile banking technologies.

"Recognizing our advanced mobile banking solutions and service, NTT Docomo proposed us to collaborate in that segment. The collaboration will help us take leading position in technology standardization as well as in expanding export markets for solutions and handsets," said a manager at SK Telecom.