22 Posts about 'Mobile Service in Korea'
- SKT’s breakthrough for data business leadership | 2010/07/17
- Many Changes led by iPhone (1) | 2010/06/04
- SKT-Samsung Vs. KT-LG | 2010/02/12
- iPhone is a driving force to increase the adoption rate of smartphone. | 2010/02/04
- LGE's Counterattack in Korean Mobile Handset Market. | 2009/07/21
- KT's teaser advertising regarding iPhone is fake? | 2009/07/21
- iPhone in Korea? (1) | 2009/07/09
SKT’s breakthrough for data business leadership :: 2010/07/17 18:18
On 14th July, SK Telecom announced new policies regarding unlimited data plans and mobile VoIP. 
SKT’s CEO is announcing several changes regarding their service at SKT's headquarter building.Many smart-phone users have complained SKT’s operational directions for several years and praised KT by the reason that KT tries a lot of innovations, including launch of iPhone in Korea and offering of their Wi-Fi network to KT’s users. In order to break the prejudice, SK Telecom tried to change many small things. For instance, in January 2010, SK Telecom announced that they would install Wi-Fi network and open the netwok to all people, including SK Telecom’s subscribers and competitors’ subscribers. However, these small tries were not able to change the negative atmosphere surrounding SK Telecom among smart-phone users.This time, SK Telecom made a big decision. SK Telecom decided to allow customers use their 3G mobile network (WCDMA) in case that customers subscribe price plans which monthly fee are over 55,000 won - around 50 USD. SKT’s new decision created a sensation among Korean smart-phone users. At many online communities regarding smart-phone, many people acclaimed SK Telecom’s new decision. Globally, most of mobile operators are reluctant to provide unlimited data plans because this plans might cause severe overloads on their mobile networks. Before SKT’s decision, all Korean mobile operators also had policies that make customers use mobile data services within limited network traffics. LG U+ (former LG Telecom) has provided monthly amount of data traffic the most aggressively. KT has supplemented customers’ data usages with their Wi-Fi network and is maintaining a policy to use both 3G mobile network and Wi-Fi network in order to meet their customers’ data usage needs. In early this year, SK Telecom also seemed to pursue a similar strategy to utilize both 3G network and Wi-Fi network. However, SK Telecom seems to turn their direction of strategy completely with this week’s announcement. I think that SKT’s new strategic direction will make its competitors such as KT and LG U+ be worried about their strategies about mobile data services. I think that it is very hard for KT to make similar strategies, because KT does not have sufficient network capacity to cover their all subscribers’ usage. Reactions of KT and LG U+ will be very interesting point in the half of this year.As well as unlimited usage of 3G mobile network, SK Telecom allowed mobile VoIP on WCDMA network. This change is evaluated as an innovative decision. Because allowing mobile VoIP might cause cannibalization to SK Telecom’s voice revenue. Since KT launched their new brand for 3G service in March of 2007, SK Telecom has maintained defensive stances regarding disruptive services. Many people criticized SKT’s defensive strategies. However, I think SK Telecom might get out of the passive images by this new plan about mobile VoIP. In addition, Korean people seem to be able to use Skype or Google Voice on their smart-phones and save their communication costs. I hope SK Telecom’s changes can become an inflection point of evolution and development of Korean mobile industry. As many people use mobile data services freely, more innovative mobile data services can appear in this dynamic market.
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Many Changes led by iPhone :: 2010/06/04 17:13
Since KT launched iPhone in November of 2009, the Korean mobile market has experienced a lot of changes. Above all, when I am on my way to work everyday, I am able to witness many people who are doing something with their iPhone. As well as the rapid increase of iPhone users, iPhone has made many changes in an interesting Asian market.
According to TrendMonitor (http://www.trendmonitor.co.kr), the Korean consumers' interest about smartphone is drastically increasing in 2010. At their same consumer research which was surveyed in April of 2009, 37% of 1,000 prospective consumers had intentions to buy smartphones, but about 68% responded that they have strong intentions to buy smartphone at this year's same research. This result shows a tremendous change of Korean mobile handset market. Although smartphone users have steadily increased in the global market, only early adopters have chose smartphones in the Korean market. Most of people have used feature phones and Korean mobile operators have also pushed feature phones to their market and customers. However, the iPhone opened the impregnable fortress against smartphone. Since the last November, around 0.7 mil Korean people chose iPhone. As well as iPhone, other smartphones also got good grades. For instance, KT's strong competitor, SK Telecom attracted around 0.6 mil new subscribers with Samsung Omnia 2. According to KT's research institute, there would be 4.9mil smartphone subscribers - about 10% of total mobile subscribers - in the late this year. Also, 20% of total subscribers will use smartphones in 2011 and 33% in 2012.
Until 2009, Nespot, KT's Wi-Fi hotspot service, was a nuisance of KT. Since 2002 when KT launched this service, Nespot has barely survived. For several years, KT had been maintaining around 0.3 to 0.4 mil subscribers. I think that this service might be under a severe deficit operation for the last several years. However, since KT released iPhone, they repositioned the Wi-Fi hotspot service as a complementary network of mobile networks such as WCDMA. They provided free Wi-Fi services to iPhone users and utilized the strategy as a marketing communication tool. Also, KT announced that they will invest more money to build up Wi-Fi zones from currently 16,000 spots to 30,000 spots. As a result, their competitor, SK Telecom decided to build about 10,000 Wi-Fi zones named T-Zone and open this network freely to all people, including their competitors' customers as well as their own customers. In near future, Korean people might be able to use free public Wi-Fi service everywhere.
1. The rise of smartphone
2. Good fight of foreign manufacturers' handsets
The rise of smartphone made another change in the Korean market. This is that foreign handset manufacturers began fighting well against strong Korean manufacturers such as Samsung and LG. Until 2009, the Korean mobile handset market was dominated by pure Korean players, including Samsung, LG and Pantech. Motorola was only one foreign manufacturer has survived in the Korean market. However, iPhone gave other foreign players wonderful opportunities to go into the Korean market. As KT attacks SK Telecom with their exclusive iPhone, SK Telecom selected a strategy that they target smartphone-friendly consumers with a lot of types of smartphone. According to SKT's announcement about their smartphone lineup from April through June, they will launch ten smartphones and six of them will be supplied by foreign manufacturers, including HTC, Motorola, Sony-Ericsson and RIM. This change makes the existing rulers such as Samsung and LG get be nervous about the situation. I believe that the new tension in this saturated market will become a new starting point of new innovation and development.
SK Telecom's prospective smartphone lineup
3. New spotlight on Wi-Fi
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SKT-Samsung Vs. KT-LG :: 2010/02/12 00:32
Today, LG Electronics announced that they will launch the first Android phone in late February through KT. Even though LG has the second position in the Korean mobile handset market, they had no Android phone in order to counterattack the other handset providers such as Apple, Samsung and Motorola. Their new Android handset is based on the European version 'LG GW620.' They customized this modem for Korean market.
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By the way, Samsung already announced that they will launch their Android phone in March through SK Telecom. LG's decision means that war for Korean Android market might begin between SKT-Samsung and KT-LG.
Anyway, I think 2010 will be an important turning point for spread of smartphone, including iPhone and many Android phones. I will frequently report the interim result of various smartphones.
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iPhone is a driving force to increase the adoption rate of smartphone. :: 2010/02/04 14:37
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iPhone became a hot trendy item for young Korean people. Since KT launched iPhone in the Korean market, around 300,000 people bought this hot item. iPhone is making many changes in using mobile services. For instance, people who bought iPhone subscribed the data price plan very naturally. Also, many people began using various data-based mobile services such as mobile twitter in every place, including street and subway.
Among many changes, I think the most important thing is that iPhone became a key driver to increase the adoption rate of smartphone in the Korea's market. As well as iPhone, Samsung also sold Omnia 2 to around 300,000 people. Also, SK Telecom officially releases the first Android smartphone on 5th Feb and announced to release around 10 smartphone this year.
Smartphone does not mean only the change of the handset feature. The increased adoption of smartphone will make the change of the usage pattern for mobile services. Before the launch of iPhone, usual Korean people were reluctant about subscribing the mobile data plan seperately and usual retail channels push the plan intetionally when selling handsets. This point was the biggest barrier that mobile data service market could grow. Currently, the change is starting in this advanced mobile market.
I will post the further changes which will be made by smartphone including iPhone and Android phone.
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LGE's Counterattack in Korean Mobile Handset Market. :: 2009/07/21 01:11
For several years, Samsung Electronics had governed the Korean mobile handset market. Samsung's mobile handset had been recognized as a unchangeable number one handset to most of Korean consumers.
However, I want to venture to say... "LGE's counterattack finally begins."
Still, quantitative statistics regarding the Korean mobile handset market shows that Samsung's mobile handsets is governing the Korean market through maintaining around 50 % market share. However, I am feeling that many young people just started to be attracted by LGE's innovative handset design. Recently, LGE launched several popular mobile handsets such as lollipop, cookie phone and arena phone. Many young people are enthusiastic on the innovative designs and user interfaces. On the other hand, Samsung maintain their classical designs.
I believe that LGE will overcome the old barrier of Samsung withing several years in the Korean mobile handset markets. Because I believe young people's enthusiasm on LGE's innovative handsets will spread out continusously.
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KT's teaser advertising regarding iPhone is fake? :: 2009/07/21 00:29
On 20th July, a rumor was abroad about iPhone in Korean blogosphere. Two mysterious teaser advertising posters opened to the public through many blogs. The below posters!
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It was known that the above two advertising posters were leaked in advance. According to many blogs, KT would be supposed to post the left one on 29th July and the right one on 12th August. The posters consist of KT's new corporate logo (Alleh! KT), iPhone-style icon and iPhone image. Because of these aspects of the posters, the mysterious advertising posters spread all over Korean blogs about mobile services.
However, KT asserted that the posters were fake. They said that there is no decision about iPhone. Because the above posters are made with very simple logo and images, it is persuasive that the posters were produced by a person who is very interested in iPhone.
Anyway, although the posters are really fake, the fast spread-out of the posters proves that many Korean people are interested in iPhone.
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iPhone in Korea? :: 2009/07/09 17:54
Although KT is officially saying that the plan to release iPhone in Korea is not decided, several news agencies have reported that KT would release iPhone in August. Especially, iNews24 (a Korean IT specialized news agency) reported a detail plan of KT regarding releasing iPhone.
According to iNews24, KT will release iPhone 3G in August and iPhone 3GS in September or October. In addition, it mentioned that SK Telecom does not make a decision about releasing iPhone.
In Korea, many people say that they are waiting for iPhone. Will iPhone make a big success in Korea? I am also wondering it. In my personal perspective, mobile operators should not modify anything including hardware and software, when they launch it. However, I am not sure whether KT could decide it without any modification. Because, many independent business models of iPhone collide with Korean mobile operators. For example, if KT launch iPhone without any modification, they should give up several their independant business such as Dosirak (a similar service to iTunes.). Korean mobile operators usually hope to become multi players which provide network, various services and content. However, when they launch 'PURE' iPhone and iPhone become the major trends in Korea, the mobile operators might become "DUMP PIPE"s.
We can see the result soon. When mobile operators launch iPhone in Korea, I will make a post regarding this again.
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