Mobile Korea

Today I have found a very interesting blog entry “The future of mobile carriers is here. It is called SK Telecom”, which is worth reading. In short it lists a portfolio of companies acquired by SK Telecom on its endeavor to diversify its business portfolio beyond being a wireless carrier, which is likely to become “dumb bit pipes” in the future.
At this SK Telecom is acting similar to Google’s strategy of continuous expansion into new business areas. This has been termed as the “Google Galaxy” by ZDNet and SK Telecom is building its own “Solar System” with various areas (I prefer this term because SK Telecoms endeavors so far are on a smaller scale). In this context it is not surprising that these companies also share common goals, which manifested in a strategic alliance announced a year ago. Both companies cooperate in the development of a mobile search solution.

Looking at all this I have some rough thoughts which I would like to share with you:

1. “Content” is becoming increasingly crucial.
For MNOs it is critical to acquire attractive contents for their services, the mobile TV market is another good example for this development.

2. Convergence is reality.
Convergence of media is not only a buzz word but already happening. It opens new business opportunities but at the same time endangers players which will not adapt to the new market environment.

3. It is a buyer’s not a seller’s market.
Instead of introducing services and expecting customers to adopt them, MNOs have to start developing services tailored to customers’ demands and needs.

4. Mobile is the center of digital life.
The mobile will become increasingly important, it will not only be a device to call other people but one of the most important entertainment and communication devices. For some time now SK Telecom is focusing its communication and advertising underlining the emotional and “human” aspects of the mobile and how it has become an integral part of Koreans’ everyday life.

To be successful in this fast moving environment it is crucial to stay up to date with the latest developments and in my point of view Korea is one of the places worth having a look at.

Many people from all over the world claim that Korea is the most strong player in Mobile TV. True. But by what means?

If we look at the numbers of who use mobile TV in Korea, the answer is 'YES'. (Now more than 7 million people watch mobile TV in Korea). From the point of profitable business, Korea still has long way to go. Despite the fact that mobile TV exists for more than two years in Korea, specific conditions of the Korean market hinder its development to full potential.

One simple explanation for this can be the putting 'Avoidable Efforts'. For example in Korea MNOs such as SK Telecom are competing against broadcasting companies such as KBS, MBC, SBS and more. This results not only in two competing standards and revenue models the subscription based S-DMB vs. the advertisement based T-DMB but also in the fact that some contents are only available for one of the respective standards. (Unfortunately Korean Regulatory bodies are divided to two entity, Telecom Committee and Broadcasting Committee. Due to this current condition, each side are making strong tension on the ownership of 'Killer Contents. We will try to elaborate this during our forthcoming report on 'Mobile TV'.)

Secondly SK Telecom nowadays is not sure which standard it should support in the future, either S-DMB or HSDPA or another new technology standard such as Mobile Wimax (which is known in Korea as WiBro). Despite a solid user base and revenues S-DMB is quite far away from reaching break even. So MNOs should wisely decide how they can optimize their products Portfolio using different technology standard in order to make the best use of Mobile TV. Actually Mobile TV has very broad definition, and from the customer perspective they do not care what standard they use say DMB, WiBro, HSDPA, Streaming Technology. It is all about providing the most desirable customer experience to the customers.

Another reason why mobile TV is not more successful than now in Korea is Koreans’ affinity to technology and gadgets. On the one hand one could argue that mobile TV is popular in Korea because of this affinity but on the other hand there are various substitutes which can satisfy similar needs. For example we have so called portable media players (PMP), which are comparable to a very small portable PC. People use these PMPs to watch TV programs they have recorded the day before on their HDD drive. So while some factors such as PMP players may not be applicable to Western markets, MNOs and broadcasters should try to avoid cannibalization and ruinous competition in order to fully exploit opportunities in mobile TV business.

With the kind of job that I’m in, I am constantly forced to move from one place to another. For this reason, I have connected my laptop computer to our company’s server so that I can access the necessary data from anywhere I want. I thought this was very convenient and even though it’s not a new concept, I have encountered many people being amazed by it.

Today however, I want to tell you about an upgraded service provided by SK Telecom. Telecommunication industry is so saturated that it’s difficult for MNOs in Korea to acquire new consumers and it’s difficult to earn revenue from the voice services anymore. Therefore, SK Telecom is focusing on providing various data services and for this reason, their revenues coming from the data service is higher than any other MNOs in the world.

This upgraded service, which is a part of their data service, is almost the same concept as the above, but now I can now access the computer via my cell phone! Frankly speaking, constantly carrying around my laptop was pretty heavy at times, but I had no problem carrying around my cell phone. The name of the service is called “Mobile Mini-PC” and the way it works is this: First, I have to apply for this service via my cell phone. Once that’s done, I download and install a program from an online site which allows me to link my cell phone with the computer. After that’s done, voila! I can now access my server computer via my cell phone! It also allows up to 5 people to access the computer and also allows transfer of files from my computer to other computers.

This service in a sense is similar to those provided by ORB (which provides the user with instant access to photos, music, videos, live television, and other digital content on their home PC at anytime and from any internet-connected device, such as a mobile phone, PDA or laptop) or that of Sling Media (which enables TV broadcastings to be viewed by PC, PDA, Cell phones, etc through networking). However, “Mobile Mini-PC” is more business oriented, which differentiates itself from these two companies.

As this service is expected to start tomorrow, it only seems yesterday how amazed I was to be able to check my email via my cell phone. As a person involved in this telecommunication industry, I am excited but at the same time worried about the increased dynamics in mobile industry. I’m excited that it’s advancing rapidly but worried about having to constantly be updated in this area. Whether I want it or not, MNOs from all over the world will continue to provide improved services such as this and many changes affecting our daily lives will occur.

What’s your perspective on how this service industry would turn out to be?

T-DMB (Terrestrial Digital Multimedia Broadcasting) Phone meets the golden age. In second quarter, the sales of T-DMB Phone increased about 3.4% comparing to first quarter.

That is interesting results because total number of 3G service phone user keep increasing and KTF, one of MNO in Korea, focus their capability on 3G services such as Video call.
However, most of T-DMB phone is concentrated on 2G service!

KTF tries to advertise the diverse function of 3G service.
By contrast, SKT and LGT, MNO in Korea focusing their ability on 2G service, promote their 2G service with excellent design and T-DMB service. Prada Phone is a good example.


Some experts said there will be keen competition between 3G and 2G service soon. It is very hard to estimate how situation will develop because this competition has never happened before.

If you concentrate your attention on how Korean TMT market is changed, you can get some insights about how your home country will be changed.