The Future of Mobile Telecommunications in Korea 2010
Group Composition
Our members are as below..
- Pyo, Kwang Joon
- Choi, Hack Soo
- Kim, Yang Mi
- Yang, Yoon Seon
Introduction
SK Telecom(SKT) and KT Freetel(KTF) provide voice, data and various value-added services as the 1st and the 2nd wireless operator in Korea. Korean wireless telecommunications market is facing new challenges including saturated subscriber and voice revenue, WCDMA and Wibro(Wireless Broadband Internet) service started on July this year, increasing DMB demands, etc. At this time, we will research and find drive forces of wireless telecommunications and develop the plausible scenarios in the future. Our team has 4 members working for SKT, KTF and Korea Institute of Design Promotion. We expect that we can share various view points.
Research Questions
- Bargaining power of channels or end user
1. What does mean recent increase of online open market to operator?
2. What is the future effects of the pressure of decreasing service price?
- Bargaining power of suppliers
3. How portals will make their revenue from wireless Internet?
4. Will T-DMB become a major service?
5. How to make a new growth engine in the mobile internet business?
6. How will mobile operators make a blue ocean in the saturated mobile market at present?
7. What is maximum number of mobile subscribers in Korea?
8. How can make profits from DMB service for mobile operators?
9. Can mobile operators create and have initiative on the mobile advertising market?
- Threat of substitute products or services
10. Why mobile companies concern about the mobile VoIP service?
11. Will Wibro sevice become a dominant service? Wibro vs. HSDPA
12. Is it possible to change from a mobile company to an entertainment company?
- Rivalry among existing competitors
13. Will the revenue of wireless Internet increase consistently?
14. How fast will the HSDPA service replace the CDMA?
15. Will SK Telecom succeed in global business?
16. as a third player, LG Telecom's future will be?
- Others
17. Which service is more valuable for customers between HSDPA and Wibro?
18. What is the ethic problem in delivering Telecommunication Service?
19. How to make successful mobile internet business?
20. Can the mobile user interface be enhanced in the future?
Driving forces
DE: Good start on the driving forces, but please use the template and the instructions in the DF section, it ensures consistency of all of the 200+ driving forces.
1. Open transaction in contents distribution
2. Promissing contents development in wired Internet
3. T-DMB service penetration rate
9. Change in user habit and perception
10. Mobile contents and service
Creating Scenario Plans
- Systems Diagram
- Scenario 1. This is the best case.
First, mobile operators made good results in global business. Several successful M&As were made in Asia, Europe and America, and also they invested effectively on the new markets like Mongol, Vietnam making a lot of subscribers. In the meanwhile, the voice market in Korea was still remaining, but not increasing as voice market was too saturated. Second, government regulations on mobile companies were being mitigated as the MIC had a bad case with LG Telecom which gave up a license for the WCDMA business resulting some problems or responsibilities. LGT gave up not only WCDMA but also all mobile business as they couldn’t afford to invest for the new network any more. KTF merged the LGT, and therefore there were only 2 major mobile companies remained in Korea. Third, mobile internet was being popular and activating. The recognition of mobile internet services was much better than the past and data business profits went up from 20% to 50% of total revenue. Moreover stock annalists said more values expected on the mobile internet business. Lastly, as the technologies developed fast, mobile based solutions like LBS, GPS, Personalization etc. became core solutions. Also HSDPA network settled and post HSDPA network had just launched. Based on these solutions and network technologies, there were a lot of new services which making more values and satisfaction for people. And luckily, the mobile VoIP was not on service as mobile companies still controlled their wireless network against VoIP companies. As the above results, End of 2010, telecommunication companies were still going on well.
- Scenario2. This is the worst case.
First, mobile companies were still finding for the new growth engines. The NGOs pushed government and mobile companies to cut voice traffic fees. The government pushed mobile companies to do this, as there ware several important elections including presidential election. Some ethic problems also emerged making serious social issues. These resulted 40% cut of company’s profits. Second, the global business, mobile companies had driven, was not clear, it may be better to say that it was totally failed. This is because, a lot of money needed to invest and they couldn’t afford to this against the global mobile companies like Vodafone, T-Mobile, NTT DoCoMo etc. Third, government suddenly decided to open the mobile company’s walled garden without any conditions to activate wired & wireless internet market. In the market, the wired internet portals had advantages as they had already been many years in internet business. Also some independent sites made their own business successfully in the adult service area like sex, photos, meetings, chatting etc. Therefore mobile companies lost their initiatives and advantages in wireless business. Lastly, mobile companies couldn’t invest on the WCDMA as it was not economically efficient for the companies. But the MIC still wanted to invest more for the new wireless network. Also mobile operators couldn’t make money with the HSDPA. The S-DMB service failed as T-DMB became more popular. SK Telecom was considering to quit the S-DMB service. Manufacturer tried to enter on mobile internet service like Samsung. It makes sense that they could control mobile devices. So, mobile companies became to only network providers.
End of 2010, mobile company’s profit was getting worse and wired internet portals tried to merge a mobile company. This would be a nightmare for the mobile companies.