Can you imagine that you collect your nectar point with your mobile phone? It might be possible in the near future because your nectar card function can be embedded in the USIM card in your mobile phone. This will definitely lighten you wallet, which are usually filled with a number of credit cards, royalty cards etc.

However, it is already the reality for the customers of SK Telecom in Korea. SK marketing & company and SK Telecom today launch their new service called ‘OK Cashbag Happy Box’. OK Cashbag by SK marketing & company is Korea’s leading royalty program (80% of Korea’s economically active populations are members of OK Cashbag). And SK marketing & company is unique integrated marketing services provider in Korea covering communications, royalty, research & consulting, commerce etc.

Previously, you have to carry your OK Cashbag card all the time in order to collect your point. And you should visit their website for checking your current points. This inconvenience hinders customers to collect and spend the points more actively. However, you can now collect and check your points with your mobile phone more conveniently as long as you can download the ‘Happy Box’ with your 3G phone.

3G phones which required USIM chip began to be deployed in Korea since 2006. Approximately 40% of customers are now 3G subscribers and this 3G migration is progressing so smoothly. The USIM is not just a small chip that has customer information for mobile subscribers but it has much more potential for providing various mobile applications.

[OK Cashbag in USIM chip]

The Happy Box provides not only royalty card function but also other valuable services. Basically, you can collect your OK Cashbag point at the 4,000 SK petrol stations all over the country. The wireless devices available at the petrol station will accept your 3G mobile phone instead of the card. The Happy Box also provides other services such as Giftycon, Mobile Research and Today’s Fortune etc.

[SK OK Cashbag Happy Box]

Personally, I once involved in a new biz development project regarding USIM. At that time I could find huge potential for USIM applications as a marketing tool. 90% of people now carry their mobile phones in which a chip with significant capacity is embedded. I believe the launch of Happy Box is just a tip of iceberg of USIM based service. Please keep watching on Korea regarding what’s happening with USIM.

KT, South Korea’s largest fixed-line telephone operator and leading WiBro service provider, has been in a dilemma, whether to opt for WiBro(a Korean version of WiMax) or LTE(3GPP Long Term Evolution) as potential 4G mobile technology after its planned merger with KTF.

KTF, Korea Telecom Freetel, is the country’s mobile phone service provider in favor of LTE-based 4G technology in that LTE can be used on its existing 3G networks.

Now KT has been hesitant to push WiBro, fearing the technology may cannibalize KTF’s mobile phone business and knowing LTE technology is most likely to become the mainstream 4G standard. Most experts say that now it may be the right time for KT to decide which path to take for the next generation technology so that KT can take the lead in the 4G mobile market against SK Telecom, South Korea’s leading mobile phone service provider. It would be interesting to watch which one of them will be selected for KT’s 4G strategy afterwards.

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.