According to a quarterly report by Akamai, South Korea has been once placed on top of the Broadband Connection Speed by country list for the fourth quarter of 2009.

Despite the fact that its internet performance has fallen by 29% YoY in the transmission speed of 11.7Mbps to stay level, they still have been able to maintain their much leading top spotl, as the average of the top 3 countries, Korea, Hong Kong and Japan, still remains at 9.3Mbps.

Korea’s standing in the 2010 first quarter report definitely seems to be promising.

                                                     (Source: Akamai)

Until now, the Korean telecommunication industry sole client base had been individual customers.  They were naturally the target customers, since people were the ones who needed telecom services for their mobile phones, home phones, and office phones. However, the telecommunication service  industry had been facing market saturation with its 47.9 million users, which accounted for almost the entire Korean population. Hence, it had been difficult to go beyond the fierce zero-sum battle over the fixed pie amongst the three major telecom players: SKT, KT and LGT.

Nevertheless, the three telecom service moguls overcame recent stagnant growth and have made a breakthrough with the B2B market. They had found a convergence model where they can create value and services by providing software solutions to a carefully selected range of core businesses of such as logistics, finance, education, healthcare, manufacture, transportation and SME (small medium enterprises).

This opened new windows for the telecommunication sector, and also created synergy value between businesses and optimized services for end consumers. Hence, the three telecom services launched their innovative projects; SKT introduced its IPE (Industry Productivity Enhancement), KT with its S.M.ART (Save cost Maximize profit Art), and lastly LGT began its ‘Taltongshin’(beyond telecom) project.

On this issue, I am going to first introduce SK Telecom’s IPE, with KT and LGT on the upcoming issues.

SK Telecom

IPE, Industry Productivity Enhancement was built as SKTelecom’s goal of becoming a ‘Global ICT(Information & Communication technologies) leader’, and also to evade stagnation in the industry. SKT’s qualified TF(task force) has selected upon eight core businesses in  logistics, finance, retail, education, healthcare, manufacturing(automobiles), housing construction, and SME(small medium enterprises). I will introduce POSCO and the automobile industry’s MIV as two of SKT’s IPE systems.

To establish a firm IPE in manufacture, SKT has collaborated with POSCO (world’s top producing Korean steelmaker) to construct a “Smart Factory,” which is based on the concept of the smartphone ‘Mobile Office’(operational management service which includes name card, electronic payment, schedule, bulletin, staff check etc) SKT had provided the previous year.  Hence within the next 4 years, POSCO is planning to replace all in-house cable phones to wireless phones, and establish a ‘(fixed wireless) broadband convergence network’ using the WCDMA(3G mobile) network. These ‘smart’ fixes are expected to bring positive effects on logistics, equipment, safety, and energy savings to POSCO.

SKT is also establishing an IPE for the automobile industry called MIV (Mobile In Vehicle). MIV is a diagnostic remote control system that provides services such as anti-theft, emergency rescue, AV integration system, meter check, etc , which is also anticipated to enhance productivity.

President of SK Manwon Jeong has stated the four mission statements of accomplishing SKTelcom’s vision of becoming a global leader in ICT, which are procuring a patriotic leadership in technology, developing of new markets, propelling globalization with its synergy effects, and increasing consumer welfare.
And, they are expecting to do so, however, not solely in their captive marekt, but by creating new market space many diverse industries.

Since Samsung Electronics release the world’s first Full HD 3D LED TV on February 25th, there has been explosive responses worldwide. Over the past 6 weeks, Samsung’s 3D TV has reached 10,000 in domestic sales, which means that 245 sets have been sold daily,  and just announced that it is expanding its production number from 2 million to 3 million as demands have been higher that expected.

Samsung has applied the ‘2D → 3D converting technology’ that allows the viewers to watch all programs in 3D with a click of the remote. It has a ‘real black filter’ to add shaded depths to bright areas of the scene to give a more dimensional figure. Furthermore, viewers can adjust amongst the 10 levels of the 3D effect. It has higher definition, with a slimmer design of 23.9mm, and is price competitive compared to the existing LED TV model.

Since its launching events in Europe, US, Latin America, and the CIS a month ago as, Samsung is leading a 3D TV fever with its global marketing strategy. Orders have been flooding, that Samsung 3D TV exports had to be shortly delayed.

In Manhattan’s Samsung 3D TV launching event, director of ‘Avatar’ James Cameron showed up and praised Samsung as “Beautiful and a business leader of the TV industry that has brought the 3D entertainment from theaters into our everyday homes.”

ESPN, Sogeocable, SBS have already gained 3D broadcasting rights for the 2010 South Africa Worldcup, which is expected to further boost demand for 3D TVs.

3D is expanding into major motion pictures, animation, home entertainment, concerts, sporting events, broadcasting television, advertising & smartphones. It is clear that the 3D industry is now never like the shows you saw in theme parks with the disposable blue& red glasses. 3D entertainment is not going to be a circus that leaves when the novelty is gone. It is here to stay and Korea is no way a trivial player in this field.