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 and WiBro operator, has created new business opporunities combining WiBro with other services in ways to expand its WiBro market and increase users. Last year KT kicked off a trial run of its WiBro-based Mobile IPTV, which was successful. Now it is expected among Korean WiBro operators, KT and SKT, that their WiBro business will gain momentum with the launch of Mobile IPTV service after the roll-out of 4G networks capable of providing 100Mbps data transfer rates that mobile IPTV requires.

Mobile IPTV is widely regarded as an IP-based multimedia service platform that embodies a combination of ubiquity, IP, and personal. Through Mobile IPTV users will be able to make a phone call over the internet, watch TV programs or UCC videos on the web, and enjoy various interactive services in an all-in-one device having relatively high efficiency when compared to DMB.  

Source: Samsung Electronics

According to KT insider it is assumed that the numer of subscribers to mobile IPTV can amount to the number of mobile phone users, which is four times bigger than possible fixed IPTV subscribers. So, it is certain that mobile IPTV will be an attractive service platform for IPTV service providers to use.

Source: Samsung Electronics

SKT has called on the government to reject a plan by KT to merge with its wireless affiliate KTF, saying the merger will create a telecom giant and make it impossible to compete fairly.

From SKT’s point of view:

The KT/KTF merger will make an interactive transition of KT’s dominent position in the fixed-line telephone market into the mobile phone market. Becasue of that, the underlying competition in terms of developing new technologies or products in the telecom market will disappear. Just the competition in marketing will become severe, which means most investment, which is supposed to be made in R&D, is most likely to be used for markeitng purposes.

From KT’s point of view:

As Korean telecom market has been completely saturated, telecom operators are struggling to find a new way of services more appealing to customers, which is in line with the global trend in fixed-mobile convergence. The KT/KTF merger will enable KT to provide various converged products that customers can certainly benefit from at lower price so that the competion in Korean telecom market can lead to cheaper but high-quality services to customers.

We will see how Korea Communications Commission(KCC), the country’s broadcasting and telecommunications regulator, responds to it.