32 Posts about 'SK Telecom'
- SKT’s breakthrough for data business leadership | 2010/07/17
- New Mobile Operator in Korea (1) | 2010/06/15
- 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
- iPhone in Korea? (1) | 2009/07/09
- 2009 Outlook of WiBro (Mobile WiMAX) Business in Korea (1) | 2009/01/20
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.
Trackback Address :: http://www.mobileinkorea.com/trackback/65
New Mobile Operator in Korea :: 2010/06/15 17:14
Currently, there are three mobile operators in Korea, SK Telecom, KT and LG Telecom. A new mobile operator will launch their mobile service in July of next year. KMI (Korea Mobile Internet) submitted the application for providing their own service to the Korean Communications Commission on 11th June.
They announced to build up WiBro (Mobile WiMAX) network and provide VoIP service based on WiBro and mobile broadband service next year. In Korea, SK Telecom and KT are already providing WiBro service, but they only cover mobile broadband service, not voice (VoIP) service on WiBro network. Also, KMI said that they will focus on MVNO business, so customers can use cheaper mobile services rather than the existing providers' services.
The major shareholders of KMI includes Samsung Electronics and Samsung Electronics is expected to provide WiBro network equipments instead of invest in KMI directly. KMI mentioned that about twenty companies participated in the investment, but they did not disclose the list of the companies this time.
To be honest, I am not sure whether they can make a soft-landing in the Korean mobile market as a new service provider which has a starting capital of 410 bil won (around $0.35 bil). Above all, They need about $2 bil to build up the nationwide WiBro coverage. Also, in the Korean mobile market, the existing three mobile operators such as SK Telecom, KT and LG Telecom poured marketing expenses of around $8 bil into the market for 2009. It may be asked whether they can bear the attack of the other mobile operators in the saturated mobile market.
Trackback Address :: http://www.mobileinkorea.com/trackback/64
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
Trackback Address :: http://www.mobileinkorea.com/trackback/62
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.
 |  |
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.
Trackback Address :: http://www.mobileinkorea.com/trackback/61
iPhone is a driving force to increase the adoption rate of smartphone. :: 2010/02/04 14:37
 |  |  |
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.
Trackback Address :: http://www.mobileinkorea.com/trackback/60
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.
Trackback Address :: http://www.mobileinkorea.com/trackback/57
2009 Outlook of WiBro (Mobile WiMAX) Business in Korea :: 2009/01/20 13:49
There will be three big changes in Korean WiBro business this year.
3 years have passed after WiBro service was launched officially in Korea. In June of 2006, SK Telecom and KT started to provide WiBro business using PCMCIA and USB dongle modems. However, only 0.2 mil users subscribed the service until the December of 2008. Even though SK Telecom and KT have made total investment of around 1,600 bil KRW for 3 years, the current performance of WiBro business is terrible. In the late last year, the Korean Government began to make various policies in order to accelerate WiBro business in Korea. In terms of the point of view, 2009 would become a very important year for Korean WiBro business.
1. Voice service on WiBro network
WiBro was originally data-centric service. In 2006, Korean Government permitted only data services such as mobile broadband on WiBro network. Thus, each WiBro device has no identification number which usual mobile handsets have. Instead of the identification number, each WiBro device has special ID which is similar to IDs of usual web services and is made of combination of alphabet characters and numbers. Because this ID is not important for users to use only simple internet connection with USB dongle modem, most of users don’t know their own WiBro ID.
However, in the Christmas Eve of 2008, Korean Communication Commission (KCC) announced that Korean Government will give identification number to WiBro subscribers and permit Voice service on WiBro network in 2009. KT, a WiBro service provider, positively replied to the announcement of Korean Government through announcing that they will provide voice service on WiBro network in 2009. SK Telecom, another WiBro service provider does not yet announce whether they will provide the voice service or not. Because SK Telecom is already operating usual mobile service using CDMA and WCDMA network, it seems very hard that they easily makes the final decision about providing the Voice service on WiBro network.
Anyway, new aspects of the situation regarding overall mobile market as well as merely WiBro market will be opened in 2009. If KT tries to penetrate mobile voice market beyond fixed communication market, including fixed broadband and fixed voice service, which KT has focused on, new competition situation in Korean telecommunication market will be built up in 2009.
2. Appearance of new entrant WiBro service provider?
As well as deciding to give the identification number to WiBro service and permit the voice service on WiBro network, KCC announced to choose new WiBro service provider in 2009. Originally, Hanaro Telecom (Current SK Broadband) was the third WiBro service provider. However, they gave up the business a few years ago and returned the wireless frequency for the business. KCC seems to ignite the competition among WiBro service providers and try to expand WiBro business in Korea through granting the remained frequency, which Hanaro Telecom returned, to a new service provider.
Yet, the official schedule for deciding a new service provider was not announced. The association of MSOs (Multiple System Operators – Cable TV Companies) is considering whether they will together try to acquire the WiBro business authority. Because, recently, commercialization of IPTV was officially decided and real IPTV will be provided this year. Major IPTV service providers are KT and SK Broadband which are fixed telecommunication companies. IPTV services of telecommunication companies will penetrate the broadcasting market which was originally dominated by MSOs. In order to protect their own business domain, MSOs might try to attack telecommunication companies through jumping into telecommunication market. WiBro is able to become a good weapon of MSOs who want to survive under tough competition with telecommunication companies.
Beside that, possibility that Samsung tries to become a new WiBro service provider might exist. Samsung Electronics is the biggest manufacturer which provides most of WiBro equipments and several WiBro devices. Even though Clearwire in US and UQ Communications in Japan are building the mobile WiMAX network and several companies in India will be chosen as mobile WiMAX service providers this year and start to build mobile WiMAX network soon, Samsung might want to drive WiBro business in Korea directly. SK Telecom and KT already made the maximum investment which they promised to make when they acquired WiBro business authorities. If SK Telecom and KT will not be able to attract more customers beyond current number of subscribers, they might not increase additional investment. Samsung might try to do the business directly and expand the WiBro business market through igniting the competition among WiBro service providers.
When the official schedule is announced and a new WiBro service provider is chosen, I will make a new post about the news.
3. Introduction of WiBro MVNO (Mobile Virtual Network Operator)
There is no MVNO in Korea, in the area of usual mobile service. However, WiBro MVNO might appear this year. When Korean Government granted the WiBro business authorities, there was a contract condition. In 2009, if any company request to rent WiBro network from SK Telecom and KT, SK Telecom and KT should enable the company to start WiBro business as MVNO.
If MSOs want to penetrate mobile communication market through providing WiBro service, they might do their WiBro business as MVNO instead of becoming a new WiBro service provider as MNO. If they decide to do MNO business, they have to make at least 800 bil KRW in order to cover only Seoul areas. (SK Telecom and KT could not make the nationwide coverage with 1,600 bil KRW.) Because this investment might become a burden to MSOs, I think that MVNO is better option for MSOs .
The above events will be hot potatoes in overall Korean mobile industry as well as WiBro area. Until last year, WiBro business was an isolate island in Korean mobile industry. However, it might make a great ramification in the overall mobile industry. I will make posts regarding the above events steadily.
Trackback Address :: http://www.mobileinkorea.com/trackback/52