Mobile Phones Popular in North Korea's Pyongyang

Mobile phones are proving surprisingly popular in the reclusive North Korea since they were launched late last year, although party officials have apparently been barred from using them.

A source from the capital city, Pyongyang said in an interview with Daily NK, "Demand for mobile phones has been increasing. Almost 30 percent of Pyongyang citizens seem to be using them. Only cadres in the Central Committee of the Party and foreigners cannot."

The source explained why, "Officials in important posts within the Party deal with strategic information. The authorities want to block them from circulating information outside." He added, "However, general people who have money can use them, and there are many people doing so."

 "The usage of mobile phones is only currently for Pyongyang citizens, and although they can call Sariwon in North Hwanghae Province the call quality is not so good. Therefore, people use them only within Pyongyang."

A mobile license was granted to Orascom Telecom's local subsidiary CHEO Technology JV Company (CHEO) which is controlled by Orascom Telecom with an ownership of 75% while the remaining 25% is owned by the state owned Korea Post and Telecommunications Corporation.

During its first quarter financials, the company recorded revenues of US$4.46 million with 19,208 subscribers. The North Korean ARPU was a surprisingly high US$24.70. Last year, the Orascom Telecom said that it expects to sign up an initial 100,000 subscribers when it launches its network.

Mobile phones, thought to be based on a GSM system supplied by China were made available in the country in 2003, but only for government officials. Use of mobile phones by the general public in the Rason Economic Zone was allowed, but a ban was imposed in 2007 and people using them were been reportedly sentenced to execution.

On the web: Daily NK

Posted to the site on 17th August 2009