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Products and services tailored to specific segments…

Monday, November 19th, 2007

are one of the reasons for the success of SK Telecom. (In the last years SK Telecom has been able to achieve and maintain a market share of around 50%.) An example for the segment specific approach is the existence of three different payment plans for specific age segments: TTL (18-24), TING (13-17) and TINGjunior (under 12).

Each of the payment plans does not only have a tailored communication, exemplified by three different websites as shown above, but also tailored services and pricing. E.g. Ting is offering reduced rates weekdays (between 21:00-24:00 – the time when teenagers come back from school) and during certain periods (summer and winter vacation). Moreover offers and deals on the website are customized to the target groups needs, featuring free educational content (TINGjunior), events and cinema (TING) and the possibility to set a spending limit (both). Additionally SK Telecom is offering child care services, e.g. location notification once your child leaves a designated zone, tracking and emergency SMS so do not need to worry. Targeting specific segments allows MNOs to provide relevant services, which add value in the eyes of the customers which again leads to higher ARPU. In the Western world this segment specific approach has been chosen by many MVNOs, but in order to increase ARPU and educate users to utilize their data related services it is crucial for MNOs to go the same way.

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Unexploited potential in Korean mobile TV market

Tuesday, November 13th, 2007

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.

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What can your cell phone do for you?

Tuesday, July 31st, 2007



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?

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