Cell phone demand stays strong in North Korea

3G service continues to be popular in one of the world's most isolated countries

Koryolink, North Korea's only 3G cellular operator, saw sales more than double in the first three months of this year as it expanded its network coverage and enjoyed continued demand for its service.

At the end of March the company had 125,661 subscribers, a gain just under 34,000 subscribers over the quarter, according to majority-shareholder Orascom Telecom. The Egyptian company, which invests in cellular operators in developing nations, owns 75 percent of Koryolink.

"Contrary to initial speculations that the mobile service will be only available to the government officials and elite, the fact is that currently mobiles are used by different segments and levels of society," Orascom said of the customer base.

The network achieved a profit of US$5.8 million in the quarter, before accounting for interest payments, taxes, depreciation and amortization. Orascom did not disclose whether it made a net profit or a loss for the period. The figure is a vast improvement on the US$312,000 EBITDA profit recorded in the first three months of last year.

Quarterly revenues were US$9 million, a jump of 102.5 percent.

Sales were hit by North Korea's revaluation of its currency.

The move, which saw 100 North Korean won devalued to 1 won, caused social unrest, according to reports from the country. Koryolink said sales activity was "practically at a standstill due to uncertainty factors resulting from the currency revaluation," and that it closed its sales outlets for about three weeks.

The North Korean network was launched in late 2008 using WCDMA (wideband code division multiple access) technology and is only the second cellular network in the country. The other, Sunnet, uses older GSM technology and suffers from poor call quality and disconnections, according to users in the capital city of Pyongyang.

At launch the Koryolink network covered Pyongyang but has since been expanded to five additional cities and eight highways and railways.

North Korea is one of the world's most tightly controlled societies. Subscribers to the network are divided by class or type of customer with some unable to place calls to others. Most calls are subject to monitoring by the state's security services as part of an extensive domestic intelligence gathering program.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobile phonesnorth korea

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Essentials

Mobile

Exec

Budget

TerraCycle Zero Waste Box Pens and Markers Small

Learn more >

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?