Archive for the ‘Cell phones’ Category

Orascom publishes 2nd quarter 2011 report

Sunday, August 14th, 2011

Read the full report here (PDF).

According to the Daily NK:

North Korea’s rapidly burgeoning cell phone user numbers have surpassed 660,000, according to Egyptian operator Orascom Telecom’s half-year earnings report for January-June, 2011.

As of March, the last time Orascom released a similar report, the number of subscribers stood at 530,000, meaning that the company has officially added 130,000 additional users in just three months, an extraordinary performance given prevailing economic conditions, the price of phones and official controls.

The figures look even better over a 12 month period; at the same point last year, there were just 184,531 subscribers. Although things are likely to slow as time passes, this still puts the era of a million subscribers, which would represent around 4% of the population, within sight.

The causes of the rapid increase in user take-up include a rapidly expanding network, that the authorities encourage Party cadres to make use of the phones, and that they are of increasing importance to those doing business in the market. In addition, the company has been working to target young people with a number of additional services including MMS and Video Call.

According to the earnings figures, as a result of these efforts Orascom made $61 million from its North Korea venture in the first half of the year, an increase of 160% on last year.

Commenting on the success, company CEO Ahmed Abou Doma noted, “Our operation in North Korea continues to display tremendous growth with a subscriber base that has more than tripled compared to the first half of 2010, the growth of which impacted revenues which increased 164% year-on-year.”

However, there is another story behind the official earnings that could serve to give investors pause. First, the earnings are based on the official USD exchange rate, 135 North Korean won, instead of the market exchange rate, which stood at far removed at 2540 North Korean won in Pyongyang on August 2nd.

Second, the report notes the introduction of what it calls the ‘Euro Pack’, a bundle which offers new subscribers “voice minutes and VAS in return of fees that could only be paid in Euros”, a concept which Orascom says is proving popular, but which certainly reflects the uncertainty inherent in dealing with the North Korean currency.

Martyn Williams has more here.

At least one report claims that the older mobile phone network (pre-Orascom) has finally been closed down.  Now Orascom is the sole mobile phone provider.

Read the full story here:
Orascom User Numbers Keep Rising
Daily NK
Chris Green
2011-8-11

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Some alleged guidelines for the Hwanggumphyong SEZ

Friday, June 24th, 2011

According to the JoongAng Daily:

The JoongAng Ilbo has acquired North Korea’s guidelines for Chinese investors at its economic development zone on Hwanggumpyong Island, and many are more liberal than those offered to South Koreans at the Kaesong Industrial Complex.

The date of the document acquired by the JoongAng Ilbo was not known.

According to the guidelines written by a joint committee for the development and organization of the Hwanggumpyong and Rason special economic zone, transactions in Chinese currency are allowed. Independent and joint banks will also be allowed to be established in the zones.

South Korean companies working in Kaesong conduct all business in U.S. dollars. Unlike South Koreans working in Kaesong, investors in the new zones will receive special privileges when it comes to using land. They are free to lease, lend or even bequeath the land to their relatives, as long it is done within a contracted period of time. Those who reside within the special economic zones can also freely use cell phones and are provided with Internet access.

Cell phones are not allowed in the Kaesong industrial complex.

The goal of the zones, the document said, was to “continue to firmly develop the traditional friendship between the two countries,” which was “agreed upon by the two greatest leaders” of China and North Korea, referring to Chinese president Hu Jintao and North Korean leader Kim Jong-il.

“It also supports the hopes and future gains of the people from the two countries,” it said.

The economic zones are also meant to improve North Korea’s manufacturing ability, quality of life for North Koreans and the North’s competitiveness in earning foreign currency, the document added. In order to do so, North Korea’s natural resources would be utilized to their fullest, including human resources, land and minerals.

The document’s role, it said, was to “aid the writing of more detailed development policies.” The guidelines are valid in the 470 square kilometers (181 square miles) of the Rason free economic zone and 16 square kilometers of Hwanggumpyong.

In case the zones fill up, the document hinted at the possibility of a third zone that could be established.

For Rason, the document said three piers leased out to different countries – China, Switzerland and Russia – would be modified to allow vessels of more than 50,000 tons to dock. In addition, new highways, bridges and even an airfield would be built in the area.

At Hwanggumpyong, a new port will be constructed for passengers and cargo vessels between the island and the North Korean city of Sinuiju. The document said the airport at Dandong, which is near Hwanggumpyong, would be “actively utilized.”

The document emphasized that foreign investors’ assets would not be nationalized and that all investors’ legal rights were guaranteed.

The document was written in both Chinese and Korean.

Despite all the promises in the guidelines, analysts remained skeptical as to how successful the trade zones will be. “It’s a mystery as to how many investors will be eager to invest there,” said a diplomatic source in North Korea.

Read the full story here:
Pyongyang promises China investors the moon
JoongAng Daily
Chang Se-jeong, Christine Kim
2011-6-24

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N. Koreans use phones to sneak information out

Wednesday, June 15th, 2011

According to the Korea Herald:

North Korea is a country that has been almost entirely isolated from news around the world for the past 60 years. The regime in Pyongyang allows Internet access to only a fraction of government officials and its power elite as it prepares for a third-generation hereditary succession to a young man in his late 20s.

The people of North Korea have been brainwashed since childhood to pay respect to the country’s idolized “Great Leader” Kim Il-sung and his son “Dear Leader” Jong-il.

So was Kim Hung-kwang until he began watching South Korean movies and drama in 1995.

“Toddlers are taught by their parents to say ‘thank you, Dear Leader’ before every meal,” Kim said in an interview with The Korea Herald.

“I had been a brainwashed, proud member of the (North Korean Workers’) party myself, until I came across South Korean films in 1995 and eventually learned that the outside world was much better.”

The computer engineering professor managed to flee the North seven years later and arrived in the South in 2003. He was joined by his family two years later.

Born in the eastern coastal city of Hamheung in 1960, Kim graduated from Kim Chaek University of Technology in Pyongyang, meaning he had been one of the North Korean regime’s highly trusted party members. While working as a professor of computer engineering at the Communist University, he was caught for lending some CDs containing South Korean drama to a friend and was sent to a collective farm as punishment.

This prompted him to defect to the South via China in 2003.

In 2008, he launched North Korea Intellectuals Solidarity with about 300 professors, engineers, doctors, journalists and writers from the North.

Now, he runs a dormitory and school for children of fellow defectors from the North, an Internet broadcasting station and publishes a periodical of articles by his colleagues.

The NK Intellectuals Solidarity is also a well-known source of breaking news from the North such as the currency denomination measure in late 2008 thanks to its informants around the China-North Korea border areas.

About 3,000 mobile phones are believed to be secretly used in the North for business purposes or delivering local information across the border, according to Kim.

“About 10 of them are ours, through which we hear about what’s going on there from our informants,” he said.

The informants in the North face the danger of getting caught by the authorities while speaking on the phone near the Tumen and Yalu Rivers with their co-workers in China.

One of Kim’s informants was caught two years ago on charges of spying and was tortured to death.

“She was a mother of three in her 30s who told us things like how the locals perceive the latest economic policies, but (the North Korean authorities) branded her as a spy,” Kim said.

“(Her death) was traumatizing and made us question if we should keep doing this. But we decided not to stop because otherwise, we wouldn’t be able to know about the inhumane crimes committed in the North.”

Kim’s solidarity has also sent in about 300 USBs technically modified to avoid detection.

The USBs do not contain any propaganda, but information on “what the defectors found surprising in the South,” dozens of new media programs such as PDF viewer, MP3 player software and e-books to enable more North Koreans to view South Korean video and text files, Kim said.

“Contrary to what we had expected, copies of Wikipedia entries turned out to be the most popular (among the North Koreans),” he said.

Currently, only five homepage servers are registered under the North Korean domain (.kr). The country connected itself to the Internet in mid-August, but only a handful of selected people are believed to have access to the Web.

Over 20,000 North Koreans have defected to the South since the Korean War ended in a truce in 1953. Hundreds are entering the South each month now mostly via China.

“I think about 4,000 people will arrive (in the South) next year,” Kim said.

“Women used to take up about 80 percent (of the defectors) before, but lately the percentage of men is going up.”

The North still maintains tight vigilance along its borders, but an increasing number of people manage to avoid the authorities’ eyes mainly thanks to bribery.

“Nowadays, it costs between 3.5 and 4 million won to bribe a single person (a soldier along the border, for example) in order to cross the border. The price goes up as (the North) tightens borderline vigilance,” Kim said.

About the North Korean people’s consciousness that they were being mistreated by the dynastical regime in Pyongyang, Kim said it was still in a “germinal stage.”

Pyongyang has tried to soothe its starving people by promising that food supply will be normalized next year, the deadline Pyongyang has set to become a “strong and prosperous nation.”

“But if the food conditions do not improve next year and turns out that it was all words and no action, people will really turn their backs against the government,” Kim said.

“They will know for sure that they are merely being used by the government. They will think that an individual’s basic rights should be placed above their government and start thinking about why there is such a major gap between what the current regime says and the reality.”

The North Koreans are now starting to learn about the need for a social safety net and how the South Korean society is going about its welfare policies through the limited information they receive from outside, Kim said.

“The third stage will be discussing what they have learned among themselves,” he said.

“Starting from groups of two or three people, the discussions will expand and eventually allow certain groups to take action.”

South Korea has reportedly been making contingency plans for various scenarios including a “sudden change” in the North such as the collapse of the Kim regime that will lead to a massive movement of refugees across the inter-Korean border.

“In case of a sudden change, the South can run a buffer zone just south of the border to temporarily house the refugees and prepare them for life in the South, although blocking the people’s free travel would be another issue,” Kim said.

“But because it would be a temporary measure, I don’t think we need to worry too much about a mass influx of refugees.’

Kim also noted that while preparing for a sudden change or unification, South Koreans should not underestimate the North.

“The South has no nuclear weapons, no inter-continental ballistic missiles, no cyber warfare troops, and most important of all, it suffers from internal conflict,” he said, mentioning an online survey last year that showed that some South Koreans did not trust their own government’s conclusion that the North torpedoed the Cheonan.

Kim said the North was training some 3,000 hackers to attack the IT systems of major South Korean institutions.

The prosecution concluded last month that North Korea was behind the cyber attack that paralyzed the banking system of the National Agricultural Cooperative Federation, or Nonghyup, in April.

“Our website was attacked in the same way they attacked Nonghyup,” Kim said.

“The North is very good at stirring up social conflict in the South, prompting certain pro-North groups to call on the government to ‘appease the North,’ or send money to Pyongyang. Their aim is to set up a pro-North regime in the South,” Kim said.

As for the “pro-North people” in the South, Kim said they seemed to hold an illusion that the North Korean system might settle their personal grudges or social problems in the South despite the fact that the Kim regime’s ideology has failed in reality.

Kim called on the South Korean government to set up a clear set of rules and conditions regarding the extent of humanitarian aid the South can send to the North in cases of natural disasters, for example, so that emergency aid to the North becomes more transparent.

Read the full story here:
N. Koreans use phones to sneak information out
Korea Herald
Kim So-hyun
2011-6-15

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Orascom releases 2011 Q1 shareholder report

Friday, May 20th, 2011

You can see the whole report here (PDF).

According to Martyn Williams (PC World):

The number of 3G cellular subscriptions in North Korea passed half a million during the first quarter, the country’s only 3G cellular operator said this week.

The Koryolink network had 535,133 subscriptions at the end of March, an increase of just over 100,000 on the end of December 2010, said Orascom Telecom. Egypt’s Orascom owns a majority stake in Koryolink, which is operated as a joint venture with the state-run Korea Posts and Telecommunications Co.

Subscriber growth has been strong ever since the network was launched in late 2008, but the most recent quarter delivered the first signs that Koryolink is having to work harder for new subscribers.

The January to March period was the first time since the third quarter of 2009 that the number of new subscribers during the quarter failed to be more than the previous quarter. In the October to December quarter, the company added just over 130,000 new customers.

Revenue for the quarter was a record US$25.7 million, a jump of 185 percent on the same period of 2010. Orascom doesn’t disclose net profit figures for the company.

The company is keen to launch new value-added services to raise average revenue per user (ARPU) and during the quarter it began offering MMS (Multimedia Messaging Service). Customers gave the service a positive response, Orascom said.

But despite the efforts, ARPU fell to its lowest level since service began in 2009. At just US$12.7 per month, it was down 40 percent on the same period last year.

Orascom also launched pre-paid cards denominated in euros to boost foreign exchange earnings from North Korea. The scratch cards offer free voice and value-added service use during off-peak hours.

The company’s network now covers 92 percent of the population.

North Korea is one of the world’s most heavily controlled countries and communication is severely restricted. Most cell phones don’t have the ability to make or receive international calls.

The Daily NK offers some additional information:

Cell phone customer numbers are rising while the price of the handsets is falling, according to sources from inside North Korea.

One such source from Pyongyang reported on the 18th, “The phone bill is no different from in the past, only the price of the cell phone itself is falling.”

According to sources, in Pyongyang a single-piece handset has gone from $280 to $250, and a clamshell design from $400 to $380 (at the exchange rate in South Pyongan Province, one dollar is presently worth 2,500 North Korean won, while a kilo of rice continues to drift in the 2,000 won range).

The source explained, “Cell phone users keep increasing. In Pyongyang, approximately 60% of people between their 20s and 50s use cell phones. Especially for the younger generation in their 20s and 30s, a cell phone is seen as a necessary item,” he said.

A source from Shinuiju also commented, “Around three out of ten young people have got a cell phone, and prices have been cut a bit.”

A source from South Pyongan Province agreed, too, saying, “Cell phone bills and prices have dropped compared with in the beginning. A basic cell phone (single-piece) is $225 and an expensive one is $300. You pay 30,000 won in our money, and then you can use it for 200 minutes.”

The source went on, “But when you buy a $10 card, you can use it for 600 minutes. This is a state policy to earn dollars.”

He explained that according to the jangmadang exchange rate, $10 is currently 25,000 won, meaning that payment for credit in dollars is of huge benefit in terms of value for money.

However, there is still an application fee of $800 and registration fee of $100, as before.

The source reported, “Cell phone traders purchase cell phones using their families’ and relatives’ names,” because only one handset per person is allowed. “Since there are many people who have obtained a cell phone in another’s name, their cell phones occasionally get confiscated when they go to the telephone office to pay the bill and get their ID checked.”

In a connected story, Radio Free Asia reported on the 19th that Koryo Link has added another 100,000 subscribers to its books since the end of last year, bringing the total number to 535,133 as of the end of March.

However, in contrast with Pyonyang and the interior areas of North Korea where usage is growing, the battle in the border region is still to restrict and control cell phone usage. Distinguishing a Chinese cell phone is not easy, so cracking down on the practice of using them is not easy, either, and therefore the method of applying for a cell phone has been made more difficult, among other measures.

According to one Yangkang Province source, “One person who took cell phones brought in by smugglers in March, remodeled and sold them was arrested by the People’s Safety Ministry, and in the light of that the process for applying for a cell phone here got stricter. The person who wishes to buy the phone must have the signature of a National Security agent now. In the beginning, there was no such rule.”

In North Korea, applications for cell phones are handled by sales offices; however, the procedure is more difficult now, and so some get the handset from a smuggler and only the number from the local office, in order to avoid the process. Of course, bribes are necessary to facilitate that, currently approximately $400-$450 in Yangkang Province.

According to sources, an official North Korean cell phone works on a different frequency to those from China in order to stop their being used to connect outside the country. However, if the frequency of a smuggled phone is changed to match North Korea’s, then the cell phone can be used.

And according to Mobile Business Briefing:

Orascom Telecom’s North Korean mobile arm, koryolink, surpassed the half a million subscriber mark in the first quarter, representing growth of 420 percent year-on-year. Orascom noted during its Q1 earnings yesterday that its North Korean subscriber base has reached 535,133, up from 125,661 a year earlier. While the numbers are still relatively small, Orascom’s North Korean venture – which was first launched in December 2008 – is being closely watched; koryolink is the only commercial operator in the notoriously secretive and totalitarian country and therefore has huge growth potential – as well as being a risky investment. Orascom said that current mobile penetration in North Korea is just 2 percent. Its revenue from koryolink rose 185 percent year-on-year to US$25.8 million in Q1, while earnings (EBITDA) hit US$22.6 million, giving it an impressive EBITDA margin of 87.6 percent.

koryolink’s network currently consists of 341 base stations covering the capital Pyongyang, 14 main cities as well as 72 smaller cities, Orascom said. The network also extends over 22 highways. As of the end of Q1 2011, koryolink covers 13.6 percent of the country’s territory and 92 percent of its population. In January 2011, koryolink launched MMS services for the first time, the latest addition to its VAS portfolio. The firm has also focused on maximising foreign currency revenue, launching in February a recharge card that can be bought in Euros.

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Koryolink employee numbers and other info…

Sunday, May 8th, 2011

Pictured above: Locations of Koryolink (Orascom) moblie phone towers I have identified in the DPRK.  Supposedly 300 exist in total.

The German Financial Times published a story on Orascom.  Much of it was familiar material, but it did contain one interestign nugget I had not seen before:

Etwa 20 Ägypter und mehr als 200 Nordkoreaner arbeiten für Koryolink – die meisten der Expats im Management, ein Großteil der Nordkoreaner als Techniker und im Service. Für die Kundenbetreuung wurde ein modernes Callcenter eingerichtet. Das Netz deckt die Großstädte, die Autobahnen und die Schienenwege ab, insgesamt etwa 15 Prozent der Staatsfläche. In dem Gebiet leben 91 Prozent der Bevölkerung.

And putting this through Google Translate we get:

Throughout the country, told Heikal, meanwhile, more than 300 transmitters spread. Some 20 Egyptians and more than 200 North Koreans work for Koryolink – most of the expatriates in management, the majority of North Koreans as a technician and service. For customer support a call center was established. The network covers the major cities, highways and rail lines, totaling about 15 percent of state land. In the field 91 percent of the population live.

The service has grown to over 500,000 users but still remains out of the hands of the vast majority of the population:

Auch wenn jetzt theoretisch jeder ein Handy haben darf, sind die Tarife für die meisten Nordkoreaner unbezahlbar. 200 Freiminuten und 20 SMS kosten im Monat 800 nordkoreanische Won, nach offiziellem Wechselkurs sind das rund 5,50 Euro. Dazu kommen die Freischaltgebühr und die SIM-Karte für 50 Euro – zahlbar in Devisen. Wer sich nichts in der wuchernden Schattenökonomie dazuverdient, kann sich das nicht leisten.

And again, via Google Translate:

Even though now may theoretically have a cell phone each, the rates for most North Koreans are priceless. 200 free minutes and SMS cost 20,800 North Korean won per month, according to the official exchange rate is around 5.50 €. Then there are the activation fee and the SIM card for € 50 – payable in foreign currency. Anyone who does nothing, earned in the sprawling shadow economy can not afford that.

And on the human resources front…

Auch bei seinen nordkoreanischen Mitarbeitern bemerkt er Veränderungen. “Vom technischen Können her sind sie sehr gut, die Herausforderungen lagen eher im kaufmännischen Bereich und im Marketing”, sagt Heikal. “Aber wir bilden sie im Unternehmen aus, und wir organisieren für sie Trainings im Ausland, vor allem in China. Ich spüre, dass sich ihre Mentalität über die vergangenen drei Jahre gewandelt hat. Sie beginnen, das Geschäft zu kapieren.”

Bisher sind nordkoreanische Angestellte noch nicht ins oberste Management vorgestoßen, aber mittelfristig sollen sie die ägyptischen Expats ablösen. Natürlich wünscht sich das Regime, dass die eigenen Leute dort die Verantwortung übernehmen – und hegt trotzdem, wie so oft, schwere Bedenken dagegen. “Auf der Managementebene muss man mit der Außenwelt kommunizieren”, gibt Heikal zu bedenken. “Wir diskutieren das mit den Behörden. Sie verstehen das Problem, aber ich denke, das wird noch etwas dauern.” Er lächelt. “Im Rückblick erkennt man enorme Verbesserungen und Veränderungen, aber wir haben noch viel vor uns. Eine ganze Reihe von Dingen wird noch eine Menge Geduld brauchen.”

via Google Translate:

Even with his North Korean employees, he noticed changes. “From her technical ability, they are very good, the challenges were more in the commercial sector and in marketing,” says Heikal. “But we are training in the company, and we’ll arrange for her training abroad, especially in China. I feel that their mentality has changed over the past three years. You begin to understand the business.”

So far North Korea’s workers are not pushed into top management, but the medium they are to replace the Egyptian expatriates. Of course, the regime hopes that their own people over there take the responsibility – and still cherishes, as so often, serious concerns about it. “At the management level needs to communicate with the outside world is,” says Heikal pointed out. “We discuss with the authorities. You understand the problem, but I think it will take some time.” He smiles. “In retrospect, there are vast improvements and changes, but we still have a lot to us. A whole series of things still need a lot of patience.”

Read the full story here:
Die Pyramidenbauer von Pjöngjang
German Financial Times
2011-5-8

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Koryolink sees increase in users and revenue

Tuesday, April 19th, 2011

Martyn Williams writes in PC World:

North Korea’s only 3G cellular operator continues to report strong demand for its service and saw record revenue and growth in subscriber numbers in 2010, its majority shareholder said Monday.

The Koryolink service ended 2010 with 431,919 subscribers, more than quadrupling its customer base over the year, said Egypt’s Orascom Telecom. Orascom owns three-quarters of the cellular carrier through Cheo Technology, a joint venture with the state-run Korea Posts and Telecommunications (KPTC).

Revenue hit US$66.4 million, up 155 percent on the year.

Koryolink launched its service in the final weeks of 2008 amid some skepticism about whether North Korea’s government, which keeps tight control on its people, would really permit the general populace to own cellphones.

The continuing subscription growth appears to have proven the critics wrong. Anecdotal evidence from foreigners that have visited Pyongyang also points to an increasing number of people being seen on the street with cellphones.

There remains plenty of room to grow. The current subscriber base represents less than 2 percent of the population. Koryolink offered cheaper tariffs in 2010 to put its cellphone service within reach of more people, and might have to continue lowering prices if it wants to greatly expand penetration inside what is one of Asia’s poorest countries.

The service now covers 91 percent of the population including the capital, Pyongyang, 14 other cities, and 22 major highways. In addition to basic voice service, a video phone service was introduced in the third quarter. SMS and MMS messaging services and high-speed data service are available, although subscribers cannot access the Internet through their cellphones.

While subscriber numbers and revenues grow, it remains unclear if Orascom is making any money in North Korea. The company doesn’t disclose net profit figures for the unit, but provides profit before accounting for interest payments, taxes, depreciation and amortization (EBITDA). Measured this way, the company posted profits of $57.8 million, up from $17.2 million in 2009.

But perhaps an indication of Koryolink’s profitability, or at least its potential, can be found in Orascom’s recent deal to merge most of its telecom operations with Russia’s Vimpelcom. The deal includes carriers in a handful of countries in Africa, the Middle East and Asia, but excludes two: its home market of Egypt and Koryolink in North Korea.

Orascom’s 2010 annual report (Just released) can be found here (PDF).

More about the Vimpelcom deal here.

Martyn discusses the firm’s performance here.

Choson Ilbo has more here.

Read the full story here:
North Korea’s Sole 3G Operator Sees Users and Revenue Surge
PC World
Martyn Williams
2011-4-19

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DPRK IT product management borrows from the past

Monday, April 4th, 2011

According to Yonhap:

North Korea has begun to demand that every personal and electronic storage device in the country be registered in an apparent effort to crack down on outside information that may contain sensitive news about Middle East uprisings, a government source said Friday.

The measure took effect early this year and has led to the confiscation of a considerable number of electronic devices, the South Korean source said, declining to be identified.

The communist country is also allowing its notoriously harsh policing organ to have the right to approve the use of a mobile phone by an individual, the source said.

More than 300,000 mobile phones are believed to be in use in North Korea, which strictly controls the flow of information in and out of its territory in an effort to keep its 24 million people brainwashed and make them conform to the regime.

And according to the Straits Times (Singapore):

Pyongyang has ordered institutions and households to report on how many computers and even portable data storage devices such as USBs and MP3 players they own, early in 2011, according to a Seoul government source.

The North Korean police agency is in charge of keeping track of the IT gadgets possessed by everyone, presses criminal charges against those who failed to report and even confiscates many of the gadgets, the source said.

The reclusive communist state has been running a unit of authorities for years to crack down on North Koreans watching South Korean soap operas or foreign movies, which they call ‘non-socialist video’.

Pyongyang is also reinforcing a crackdown on use of cellphones and the Internet. It is estimated that more than 400,000 mobile phones are being used in North Korea. North Koreans are required to get government permission to use cell phones. They are also banned from bringing them into the country or using cell phones bought overseas.

Foreign members of international non-governmental organisations working in North Korea were also told to follow domestic regulations on cell phones.

It appears that the DPRK is attempting to treat these products the same way it has treated radios for decades.  Lankov writes in his book, North of the DMZ:

Certainly, a person with some technical knowledge can easily make the necessary adjustments and transform such a receiver into a real radio. To prevent this from happening, the police undertake periodic random inspections of all registered receivers. Controlling the correct use of radio receivers is also an important duty of the heads of the so-called people’s groups or inminban. The head of an inminban can break into any house at any time (even in the dead of night) to check for the possible use of a non-registered receiver.

If a North Korean has access to foreign currency, he or she can buy a foreign-made radio set in one of the numerous hard-currency shops. However, after purchase the radio set was subjected to minor surgery in a police workshop — its tuning had to be fixed, so it could only receive official Pyongyang broadcasts (it appears this practice is declining in recent years).

The control was never perfect…

Of course it is questionable as to whether the inminban play a reliable role in “law enforcement” these days.  Instead, individuals in these positions seem to play an increasing role in shielding their residents from Pyongyang’s dictates rather than assuming a pure-exploitation position.  In the past we have seen how inminban effectiveness can affect local real estate prices.  Also, when the government needed to apologize for the disastrous “recent” currency reform, they did so in person to the inminban representatives.

Given the proliferation of electronic devices, particularly in Pyongyang, in combination with the capacity of local police to carry out this mission, I believe the actual result of this policy will be the registration of “some” electronic devices along with the hiding and bribing required to keep others off the books.  So inspection police just got a raise!

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KJI and JST meet with Orascom president

Sunday, January 23rd, 2011

Pictured above (L – R): Jang Song-thaek, Naguib Sawiris, and Kim Jong-il

According to Martyn Williams:

The CEO of Egypt’s Orascom Telecom has been given a rare honor during his current trip to Pyongyang: an audience with Kim Jong-il and dinner hosted by the reclusive leader for the businessman whose firm owns a majority of North Korea’s only 3G cellular network.

Naguib Sawiris arrived in the North Korean capital on Friday and was received on Sunday by Kim Jong-il, the Korea Central News Agency reported on Monday.

Kim Jong-il, “warmly welcomed his DPRK visit taking place at a time when Orascom′s investment is making successful progress in different fields of the DPRK, including telecommunications,” the report said.

Orascom holds a 75 percent stake in Cheo Technology, which operates North Korea’s only 3G cellular network.

The network, the remaining stake in which is held by the government, uses the Koryolink service name. It has seen fast growth in subscribers and currently claims more than 300,000 accounts in just the two years since its launch.

After starting first in Pyongyang, the network has been expanded to cover provincial capitals and smaller cities and a 3G signal is now within reach of 75 percent of the population, the company said in November last year.

The Orascom group has made several other investments in the country. In 2007 it invested in a cement factory and in late 2008, at around the same time it launched the 3G network, it opened a local bank. The company has also been tied to renewed construction work at Pyongyang’s pyramid-shaped Ryugyong Hotel. The iconic building was halted in 1992 and has remained vacant ever since.

According to the AFP:

North Korean leader Kim Jong-Il has met the head of an Egyptian company that provides a mobile phone service in the impoverished communist nation, state media reported Monday.

Naguib Sawiris, chairman and CEO of Orascom Telecom Holding, has been visiting the North since Friday. His company has provided a mobile phone service in the North jointly with a local firm since late 2008.

Kim “warmly welcomed his DPRK (North Korea) visit taking place at a time when Orascom’s investment is making successful progress in different fields of the DPRK, including telecommunications,” the North’s state news agency KCNA said.

Kim had “a cordial talk” with Sawiris and hosted a dinner for him, it added.

Orascom said last year that mobile phone subscriptions in North Korea had more than quadrupled in the space of a year — to 301,199 by the end of September 2010 from 69,261 a year earlier.

However, it said overall “mobile penetration” remains at one percent in the country, which has an estimated per-capita GDP of 1,700 dollars and a population of 24 million.

North Korea strictly controls access to outside information and fixes the tuning controls of radios and televisions to official stations.

It began a mobile phone service in November 2002 but shut it down without explanation 18 months later and began recalling handsets.

But in December 2008 the country introduced a 3G mobile phone network in a joint venture with the Egyptian firm.

The Egyptian group in 2007 sealed a 115 million dollar deal to invest in a North Korean cement plant. It is also reportedly involved in completing construction of the 105-storey Ryugyong Hotel in the capital.

Martyn has more at North Korea Tech.

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DPRK tops 3-G ranking

Sunday, January 16th, 2011

According to Martyn Williams at North Korea Tech:

The late start of cellular telephony in North Korea has brought the country at least one advantage: it leads the world in 3G adoption.

An impressive 99.9 percent of all subscribers in the country use 3G, placing North Korea number one in the world, telecommunication analyst TeleGeography said on Wednesday.

The solid showing doesn’t really mean North Korea’s cellular network is ahead of the world. In fact, it does more to illustrate how statistics can sometimes provide only half the picture.

While 3G adoption is indeed strong, it’s because most people didn’t have a chance to subscribe to the country’s 2G network.

A small handful of subscriptions on the Sunnet network were allowed before restrictions were put in place in the wake of the Ryongchon train explosion in 2004. Phones were also expensive and the network was not available nationwide.

In contrast the 3G network has been made more widely available. It’s operated by Koryolink, a joint venture between the state-run Korea Posts and Telecommunications Co. and Egypt’s Orascom.

Koryolink had 301,199 subscriptions at the end of its third quarter, which represents a penetration of just over 1 percent of the country – that’s poor by international standards.

In contrast, Japan ranked second in the survey with 94.6 percent of cell phone users on 3G. That works out to about 115 million lines.

Read more here (image source).

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DPRK builds hundreds of cell towers, expands distance education opportunities

Monday, November 22nd, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No. 10-11-22-1
11/22/2010

The Chosun Sinbo reported on November 15 that North Korea has erected hundreds of cellular signal towers throughout the country, providing phone service to every province, city, and town in North Korea. According to the report, the expansion of the North’s 3G network has really taken off in 2010, and the number of subscribers within the country has grown 2.5 times in the latter half of the year, as has the available coverage area.

This initiative has focused on setting up hundreds of cell towers near major highways, cities, and industries important to economic advancement. It was also reported that industry insiders had revealed that not only towns, cities, and provinces were targeted for the expansion of cellular service, but that there was a plan to erect towers in the back country, as well, and that authorities aimed to extend service to every village in the country by next year.

To this end, the Chosun Sinbo reported, the Pyongyang-based DPRK-PRC JV Checom Joint Venture Company has set up a “flow manufacturing process and is producing hundreds of high-performance cellular phones each day” and, “Related sectors are testing new devices and actively working on a project aimed at modifying the operating software to suit the needs of North Koreans.”

The paper also reported that North Korea’s academics and scientists collaborated to develop such a system in a short time, and that the system was also integrated into the nation’s Intranet. This system is different from the previous configuration in that videos, recordings, and text messages can be sent both ways, so that the system better supports an exchange of information rather than merely a transfer.

The paper emphasized that by providing distance education service to every local academic office, city and town library, and science and educational facility, the North has enacted a state-of-the-art, nationwide education system. In addition, by providing the infrastructure for real-time interactive lectures, workers and children in every region of the country can easily pursue their education by actively participating in a wide range of lectures.

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