South Korea Telecommunications Report Q3 2009: Industry Report

South Korea Telecommunications Report Q3 2009

Product Type: Market Research Report
Published by: Business Monitor International
Published: July 2009
Product Code: R302-7426

Description

In this quarter’s update, BMI has focused on the fixed-line and broadband markets of South Korea,expanding our content to include a number of new services offered by the country’s operators.

The fixed-line market ended 2008 with a total of 22.252mn lines, down by 3.8% in the year, and thenfalling further in the first quarter of 2009 to reach 22.003mn. This represented a turning point, as 2007had witnessed an increase of 4.4% in the year. Aside from the overall maturity of the sector, the declineof fixed line represented the rise in demand for VoIP services. There were just over 3mn VoIP subscribersat the end of February 2009, up from 2.5mn in 2008. This represented an increase of 20% in just twomonths. In addition to this, mobile continued to represent an attractive alternative service to fixed line.

We have revised our outlook for the fixed-line market, after the decline in 2008 was smaller than we hadanticipated. By the end of 2009, we estimate a total of 21.1mn fixed lines, representing a penetration rateof 43.6%, and that this will fall below 40% by 2013, to reach 39%. Over this period between 2009 and2013, BMI forecasts an average annual decline of -2.5%.

The decline of the fixed-line market on account of the rising interest in VoIP, has meant that fixed-lineoperators such KT, SK Broadband and LG Dacom, have been able to offset the decline in traditionalvoice telephony revenues they would have suffered by expanding their broadband products. Aside fromVoIP, these same three wireline operators have been heavily involved in IPTV. This allows operators tobundle their services of fixed line, internet and TV into a single package, with the possibility of alsoadding mobile, for a single monthly price.

However, according to IPTV News, citing The Korea Times as its source, at the beginning of 2009, thethree operators had signed up a total of over 400,000 subscribers. The apparent slow subscription rate hasbeen due to customer complaints, as customers are less than happy with the ‘dull and patchy’ service,while a lack of content remains another gripe. To this end, operators have announced their intentions toraise the number of available channels.

Neither has the home-grown wireless broadband platform WiBro been a resounding success. Roughlythree years after launching in June 2006, KT and SK Broadband announced that they had just 220,000subscribers as of May 2009. Again, poor coverage has been to blame. The Korea CommunicationsCommission (KCC) has promised that WiBro mobile services will be available by the end of 2009, aspart of efforts to provide a boost to the technology.

Meanwhile, we have, with the exception of forecasts, retained our mobile market analysis, which will befully updated in the next quarterly report.

Table of Contents

Executive Summary: SWOT Analysis; South Korea Wireline SWOT; South Korea Mobile SWOT; South Korea Political SWOT; South Korea Economic SWOT; South Korea Business Environment SWOT; Business Environment; Asia; South Korea
Table: Asia Telecoms Business Environment Rankings: Industry Forecast Scenario; Mobile
Table: South Korea Telecoms Sector - Mobile - Historical Data & Forecasts: Fixed Line
Table: South Korea Telecoms Sector - Fixed-Line - Historical Data & Forecasts: Internet
Table: South Korea Telecoms Sector - Internet - Historical Data & Forecasts: Market Data Analysis; Mobile
Table: South Korean Mobile Market Net Additions (Q408)
Table: South Korean Mobile Market, Q408: ARPU & MOU
Table: South Korean Mobile Operators - Monthly Outgoing Minutes Of Use (bn) 2005-2008: 3G; Mobile Contract Wins; Mobile Content; Regional Outlook
Table: Asia VAS Market By Service: Country Outlook
Table: SK Telecom Wireless Internet ARPU By Service Type (KRW): Value-Added Services Timeline
Table: Selected VAS Services (2008-2009): Mobile Operator Data
Table: South Korea Mobile Market Overview
Table: SK Telecom - Mobile Market Overview
Table: KTF - Mobile Market Overview: LG Telecom; Fixed-Line
Table: South Korean Local Access Market, March 2009: Domestic Long Distance (DLD); LG Dacom Domestic Long-Distance Revenues (Q109 Vs Q108); VoIP; Broadband; South Korea Telecommunications Report Q3 2009; © Business Monitor International Ltd Page 4
Table: South Korean Broadband Market, March 2009: South Korea Broadband Access Types By Operator (March 2009); IPTV; WiBro; Wireline Developments
Table - Wireline (Fixed-Line and Broadband) Developments: Regulatory Environment & Industry Developments
Table: Division Of Regulatory Responsibility In South Korea: Legislation; Industry Developments; Competitive Landscape; Competitor Analysis
Table: Key Players - South Korea Telecoms Sector
Table: Selected Operators Financial Indicators: Company Monitor; Nokia Reports Little Joy As Recession Takes A Firm Hold; Nokia: Reported Q408 Results (EURmn); Nokia Mobile Device By Geographic Area (mn units); Nokia Siemens Networks Net Sales By Geography; Major Equipment And Services Awarded To Nokia (2007-09); Selected Profiles - Operators
Appendix: Key Players; Fixed-Line Overview
Table: Regional Fixed-Line Penetration Overview: Broadband Overview
Table: Regional Broadband Penetration Overview: Mobile Overview
Table: Regional Mobile Penetration Overview: BMI Telecoms Industry Glossary
Table: Telecommunications Glossary Of Terms: Telecoms Business Environment Ratings Methodology; Ratings Overview; Weighting
Table: Weighting: Indicators; Indicators; Country Snapshot: South Korea Demographic Data; Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030: Section 2: Education And Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030: Section 3: Labour Market And Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Wages, 2000-2012: BMI Forecast Modelling; How We Generate Our Industry Forecasts
Table: Telecommunications Industry Forecast: Sources

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