2008 Top 10 News on Korean Technology Market is continued from Part 1.

6. WiBro (Mobile WiMax) is going global

Korea’s WiBro players such as Samsung, KT and PosData are harvesting in its global market penetration. For example, Sprint-Nextel started to provide Mobile WiMax service over Baltimore with Samsung.

Also WiBro players have some achievements in 2008 as following (click to see detail).

7. Korea, Nation of e-Democracy

At first half, Korean netizens were busy to discuss about controversial and political issues including US beef imports and Grand Canal Plan on the internet.

Those discussion on the internet actually triggered candlelight vigil nationalwide. In Korea, internet is considered as the space for swaying public opinion. However while providing an opportunity for discussion and feedback about stories, the culture of posting comments has highlighted the dark side of the Internet, where people irresponsibly express extreme opinions from behind a cloak of anonymity.

8. Consolidation deepens in communication industry

Market consolidation on Korean communication industry is being accelerated. Three major camps, SK , KT, and LG are competing at mobile, IPTV, broadband and VoIP market.

Last February, SK Telecom, the leading mobile operator, merged Hanaro Telecom (as is SK Broadband), the broadband operator, last February. M&A between KT and KTF seems to be progress next year and LG Dacom, LG Powercom, and LG Telecom are considering M&A as well.

9. Changes on regulatory body

Korean government founded Korean Communications Commission (KCC) on March. Befor its foundation, MIC (Ministry of Information and Communications) regulated mainly telecom and communication industries, and Korean Broadcasting Commission regulated broadcasting market. However KCC is responsible for enforcement of communication regulations and communication service policies, whose role is similar to Ofcom in UK. Recently KCC is pursuing several policies related to next-generation service and reducing telecommunication prices including IPTV commercialization, number portability for VoIP, and allowing Voice over WiBro with 010 prefix number used for mobile phone.

10. Transforming to 3G

Transforming to 3G is accelerated in 2008. KTF and SKT promoted their 3G services competitively at the first half, therefore 3G penetration rate rose around 30%. SK Telecom and KTF is operating WCDMA, but LG Telecom is providing Lev.A currently. As following chart, 3G subscribers are increasing continuosly.

As 3G subcribers are increasing, various value-added services using USIM card are also providing to customers, including mobile payment, transportation card and so on.

I picked 2008 top 10 news at Korean Technology market as follow.

1. WIPI is gone

As I posted already, KCC released the duty of loading WIPI by next  April. This will affect mobile operator as well as mobile device manufacturer. It seems to be more foreign mobile device like iPhone or Blackberry will be launched in Korea next year due to this releasing.

2. Global companies rush to Korea

Beginning from Youtube’s expansion to Korea last January, Myspace and Facebook also extended their business to Korean market this year. Youtube Korea currently ranked top 10 among Korean video site, as well as ranked top 5 during the candlelight vigil on May. Google Korea initially launched localized service as map service in Korea and merged Korean internet company, TNC. EA, I think, is doing business in Korea pretty well and merged Korean game comapny, J2M recently. However, Myspace and Facebook have suffered in Korean market, while Cyworld, the leading SNS in Korea, is having 20 million unique visitor per month.

3. Touch screen phone makes huge hit

Even though Apple’s iPhone didn’t come to Korea, phone having similar feature like iPhone hit the Korean mobile market. Samsung’s Haptic has been sold more than 1.5 million for 8 months and LG’s touch UI phones also have been sold a lot this year inspite of their high prices.

Touch UI appealed to customer becuase of easy interface to use not only phone itself but mobile internet. And now these trends are continuing to interets for smart phone. While KCC recently announced to release the duty of loading WIPI on the mobile phone by next April, the interests for smart phone such as iPhone or Blacberry is getting bigger than before. I guess that touch screen phone wave in mobile market will continue to smart phone next year.

4. IPTV is rising

From last November, the first commercial IPTV service, KT’s Mega TV has began in Korea. Actually many experts thought that it would be difficult to launch commercial IPTV service this year because broadcasting agreement between broadcasts and IPTV providers was facing rough. However Korean government eager to make IPTV successful as Korean next growth engine, other IPTV operators also will provide commercial service by next January.

5. VoIP is becoming the Defacto

I also posted about VoIP market growth in Korea previously. As number portability for VoIP has began, VoIP for home market has increased and is forecasted to grow more next year. As following chart, PSTN subscribers are decreasing and expected to get decrease more and more while people are moving to VoIP.

VoIP will displace PSTN eventually. This threatens KT, the leading player in PSTN market, but gives an opportunity to other players such as LG Powercom and SK Broadband.

2008 Top 10 news is continued at Part 2. Click this here to read.

ZDNet Korea posted that 2008 top 10 news at Korean communication industry. In that article, author said, the keyword of 2008 at Korean communication market is

“Convergence”

Followings are top 10 issues that ZDNnet Korea picked,

1 Korea Communications Commission(KCC) has been founded

As convergence between broadcating and telecommunication is progressed fastly, the needs for integrated government agency for both broadcasting and telecommunication has increased as well. In that reason, Korean government founded Korea Communications Commission (KCC), the goverment agency similar to Ofcom in UK, early this year.

2 Commercial IPTV service has began

From last November, the first commercial IPTV service, KT’s Mega TV has began in Korea. Actually many experts thought that it would be difficult to launch commercial IPTV service this year because broadcasting agreement between broadcasts and IPTV providers was facing rough. However Korean government eager to make IPTV successful as Korean next growth engine, other IPTV operators also will provide commercial service by next January.

3 Leak of personal information issue

In 2008, people heard several accidents about leak of personal data from companies. Not only internet based company such as Auction and Daum, but also the comanies in other industries including GS Caltex and Hanaro Telecom had those accidents. By several accidents, people realized the leak of personal data as serious problem more. Also Korean government is actively looking for protecting privacy more than before.

4 Deliverying scandal of KT and KTF

KT and KTF had been bad this year. Former KTF’s president Cho and Former KT’s president Nam was arrested for taking bribes from the deliverying companies. Due to this scandal, M&A between KT and KTF was also postponed.

5 Duty of loading WIPI will be released by next April

As I posted already, KCC released the duty of loading WIPI by next  April. This will affect mobile operator as well as mobile device manufacturer. It seems to be more foreign mobile device like iPhone or Blackberry will be launched in Korea next year due to this releasing.

6 M&A between communication companies

As the convergence between broadcasts and telecommunications, M&A has been accelerated more and more. SK Telecom, the leading mobile operator, merged Hanaro Telecom, the broadband operator, last February. M&A between KT and KTF seems to be progress next year and LG Dacom, LG Powercom, and LG Telecom are considering M&A as well.

7 Communication firms began selling Bundling packages

In 2008, bundling packages like DPS, TPS or QPS has sold initially. SK Telecom has mobile, broadband, IPTV and VoIP through M&A with Hanaro Telecom (as is SK Broadband). KT and KTF also launched bundling products including mobile based on fixed or broadband products.

8 VoIP market is ready to grow

I also posted about this issue previously. As number portability for VoIP has began, VoIP for home market has increased and is forecasted to grow more next year. As KCC also allowed to provide Voice over Wibro recently, wireless VoIP is expected to come next year.

9 Grand National Party proposed to reivise the law on broadcating

Grand National Party proposed to revise the law on broadcasting, mainly about releasing the restrictions on press holdings.  However the opposition party and NGOs are against that law. Also The National Union of Media Workers decided to begin strike from December 26th in the face of opposition. This issue would be continuing next year.

10 Intense marketing competition at mobile communication market

During the first half, three mobile operators, SK Telecom, KTF and LG Telecom spent lots of money into marketing. Marketing cost of MNOs reached 31% of their revenue at the first half. This was totaly zero sum game for players, so players changed the policies as keeping their subscribers not attracting new customers from competitors.