Business Monitor International


South Korea Telecommunications Report

Published 02 October 2014

  • 102 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
South Korea Telecommunications Report

BMI View: South Korea is one of the most advanced markets in the world and is the first nation to have launched LTE-advanced services commercially. Only SK Telecom is still offering 2G services in the market and we expect 2G to be completely phased out by 2015. The key mobile growth driver is expected to be the migration of customers from 3G to 4G, although we see some downside risk to the pace of this transition after the handset distribution law takes effect from October 2014.

Key Data

  • The mobile market has continued to expand, even with penetration above 119% by 2013. Total subscriptions reached 55.982mn in Q114.

  • The fixed-line market is still expanding, mostly due to the growth of VoIP, but it is slowing noticeably. Growth in the broadband market has slowed due to a combination of high penetration rates for wireline services and competition from LTE services.

Key Developments

Following the auction of the 1,800MHz spectrum for the use of LTE services, all three operators announced planned extensions of their respective services. KT announced it would be implementing LTE-Advanced (LTE-A) in Seoul and the surrounding regions from September 2013, and throughout most major cities by March 2014. KT is trailing its rivals, with SK Telecom having launched LTE-A services for smartphones in July 2013. Finally, LG U+ launched its LTE-Advanced network in July 2013 in Seoul, as well as in other major cities.

South Korea's telecoms market could receive an injection of foreign investment following the decision by the government to lift the foreign ownership cap on the telecoms sector in the country. However, the raised cap will not apply to the nation's three incumbent mobile operators, leaving doubts over whether investors will see potential in a mature market where they cannot invest in the dominant providers. Foreign investors would be required to set up an investment vehicle in South Korea to own a stake in the telecoms firm.

In April 2014, regulator KCC...

Table of Contents

BMI Industry View
7
SWOT
8
Mobile SWOT
8
Wireline SWOT
10
Political
11
Economic
12
Business Environment
13
Industry Forecast
14
Mobile
14
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (South Korea 2011-2018)
14
ARPU
15
Wireline
18
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (South Korea 2011-2018)
18
Broadband
19
Industry Risk Reward Ratings
20
Table: Asia-Pacific Telecoms Risk/Rewards Ratings - Q414
23
Market Overview
24
Mobile
24
Regional Perspective
24
Key Developments
24
Table: South Korea Mobile Market Regional Comparisons, Q214
25
Mobile Growth
25
Market Share
26
Table: South Korea Mobile Market, Q214
27
Usage
27
MVNOs
28
Networks
30
Mobile Content
34
Mobile Operator Data
37
Table: Mobile Market Overview
37
Table: SK Telecom
38
Table: KT
39
Table: LG U+
40
Asia Mobile Content
42
Increased Smartphone Adoption A Key Enabler
42
Mobile Games Sector Competition Intensifies
43
Three-Year Outlook For Asian Mobile Games
44
How Mobile Operators Fit In
45
Wireline
46
Table: Fixed-Line Subscriptions By Operator And Technology ('000), 2011-2014
47
Broadband
48
Table: Broadband Subscriptions 2011-2014
49
Table: Broadband Subscribers By Technology And Operator ('000), March 2014
49
IPTV
50
Industry Trends And Developments
52
Table: Latest Developments
55
Regulatory Development
57
Regulatory Environment
57
Table: Division Of Regulatory Responsibility In South Korea
58
Latest Developments
61
Table: Regulatory Developments
62
Competitive Landscape
63
Table: Key Players - South Korea Telecoms Sector
63
Table: Operators' Financial Indicators, 2006-2013 (USDmn)
63
Company Profile
64
KT Corporation
64
SK Telecom
69
LG Uplus
75
Regional Overview
79
Demographic Forecast
83
Table: South Korea's Population By Age Group, 1990-2020 ('000)
84
Table: South Korea's Population By Age Group, 1990-2020 (% of total)
85
Table: South Korea's Key Population Ratios, 1990-2020
86
Table: South Korea's Rural And Urban Population, 1990-2020
86
Glossary
87
Table: Glossary Of Terms
87
Methodology
89
Industry Forecast Methodology
89
Sources
91
Risk/Reward Ratings Methodology
91
Table: Risk/Reward Ratings Indicators
92
Table: Weighting Of Indicators
93

The South Korea Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of South Korea's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's South Korea Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in South Korea.

Key Benefits

  • Benchmark BMI's independent telecoms industry forecasts for South Korea to test other views - a key input for successful budgeting and strategic business planning in the Korean telecoms market.
  • Target business opportunities and risks in South Korea's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in South Korea.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.

Business Environment Rankings

BMI's Telecommunications Business Environment Rankings provides a country-comparative Risk-Reward Rankings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.

The rankings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.

BMI Industry Forecast Scenario

Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

  • Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.
  • Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.
  • Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.

Market Data Analysis

Detailed market analysis of the mobile, mobile content, fixed line and internet segments, broken down into:

  • Market Data - Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
  • Technology/Service Rollout - Analysis of rollout/adoption of new technology, such as 3G, WiMAX, IPTV, pay-TV, LTE and value-added handset services (gaming, music, video, apps etc.).
  • Mobile Content - The latest trends in content and services available and being introduced by mobile operators. Including a timeline of all the latest major mobile content developments.
  • Company Database - A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).

Regulatory Environment

Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. The latest updates in the market's development and regulatory rulings.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.

The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

secure
Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%

Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc