U-communication
Korea Mobile Market Trend for
Convergence & Ubiquitous Communication
2004. 03. 04.
SK Telecom
1
U-communication
Table of Contents
I.
I. Mobile
Mobile Market
Market Situation
Situation
Subscribers & ARPU
Market Growth Factors
Technology Evolution
Global Competitiveness
II.
II. Market
Market Driven
Driven Factors
Factors
III.
III. Market
Market Paradigm
Paradigm Shift
Shift
2
U-communication
I. Mobile Market Situation
Subscribers & ARPU
Mobile Market Shares In Korea
Wireless & Wired Penetration Rate
Expectations
40
33.6mn
30
20mn
20
5
Total Sub.
Wireless sub surpassing
wired line's (Sep 99)
25
10
71%
30.5mn
35
15
80%
Mobile
60%
48%
Fixed Line
40%
10mn
5mn
Wireless subscription
surpassing wiredline's
(Sep 99)
20%
5 mobile operators to 3 players
0
'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03
1. SK Telecom
! Subscribers : 18.3 Millions
! ARPU : U$38 (Data $6 included)
2. Other Players
Subscribers : 15.2 Millions
ARPU : U$32
0%
97
98
99
00
01
02
03E 04E 05E
Major Asia Nations Penetration Rate
!Taiwan : 90.6 %
! Hong Kong : 83.1 %
! Singapore : 71.6 %
! Japan : 50.1 %
* Source : Global Mobile (Year 2001)
! Korea Wireless Market : 71 % (Yr. 2003)
3
U-communication
I. Mobile Market Situation
6
5
Data
4
3
2
1
0
1999
Market Growth Factors
Voice
2001
2003
2005
2007
2009
Data Market Growth (Source : SKT Data)
(Current Data APPU Ratio : 15% vs. Yr.2002 : 10%)
Global Telecommunication Unification
- Global Roaming : CDMA 13 nations,
- GSM-CDMA Inter Standard Roaming 44 nations
(Source : SKT Data Yr. 2003)
Data
Voice
Video
Internet
Multiservice
Network
Data Service Expansion (Multimedia etc.)
(Current Throughput : Avg. 600kbps)
Paradigm Shift of Technology & Industry
(Company & Company " Industry Integration)
4
U-communication
I. Mobile Market Situation
High
1995
2000
Technology Evolution
2005
3.5G
Portability
2G/2.5G
Mobile
Access
UWB
2-11 GHz
W-Broadband
B-WLL, 802.16
5 GHz
W-LAN
WLL
2.4 GHz
W-LAN
Low
Fixed/
Local Area
Wireless Access
802.11b/a/g
Transmission Speed
(Voice)
(Data)
Very High Speed
Multimedia Service
High Speed
Wireless
IMT-2000
3G
Improvement
IMT-2000 Service
Cellular/PCS
Low
4G
2010
(Image/Graphic)
(Moving Picture/
Digital TV)
High
(High Quality Video Streaming
/Multimedia)
5
U-communication
I. Mobile Market Situation
Total Telecom. Market Volume (Yr. ’01)
#
Accounting for U$18 Billion
#
The 9th ranks among OECD 24 nations
302.8
Global Competitiveness
Mobile Market Sales Revenue (Yr.’01)
(Unit: U$ Bil.)
69
68.9
(Unit: U$ Bil.)
118
66.2
USA
Japan
U.K
13.4
18
66.2
Aus.
Korea
OECD
Avg.
Wired/Mobile Subscribers in 100 People Basis ( Yr ’02)
#
100 Unit Subscribers of the Population :
- Wired Line-the 21st ranks,
- Mobile-the 18th ranks
129
129
118
117
114
85
L
49
62
64
68
11.9
USA
Japan
U.K
Korea
10.3
OECD
Avg.
(Unit: Mil.)
130
155
74
57
24
Japan
Aus.
10.8
Internet Users (Yr. ’02)
M
USA
3.2
UK
Aus.
Korea
OECD
Avg.
USA
Japan
UK
8
Aus.
26
Korea
16
OECD
Avg
6
U-communication
Table of Contents
I.
I. Mobile
Mobile Market
Market Situation
Situation
II.
II. Market
Market Driven
Driven Factors
Factors
Customer Segmentation
Segmentation Brands Power
Wireless Data Market Growth
III.
III. Market
Market Paradigm
Paradigm Shift
Shift
7
U-communication
II. Market Driven Factors
•Weekday Worker Pattern
•Daylight Activity Saturday Pattern
•Overall Low Usage
•High Proportional Usage in High Rate
•High Proportional Low Call Usage
•Short Call
•Low Proportional Mobile Call
•Low SMS Usage
•Low WAP Minutes
•Age (40’s & 50’s)
•Weekday Night Life Pattern
(No worker Pattern)
•Saturday Daylight Activity Pattern
•Overall Medium Usage
•Low Mobility / Small Sphere
•High Concentration in Numbers
•High Proportional WAP Minutes
•Low Percentage of Using VAS
•Low Call Forwarding Utilization
•Low Call Waiting Utilization
•Age (Late 20s and 30s)
Customer Segmentation
•Overall High Usage / Weekday Pattern
•Worker Weekday Pattern Saturday Daylight Pattern
•High Proportional Usage in High Rate
•High International Usage
•High Mobility / High Sphere
•Medium WAP Usage/ High Voice Mail/VAS Utilization
Segment 3
Segment 1
Segment 2
Mobile Biz. Person
Old
Generation
Non-Mobile
Medium
Usage
Segment 6
Work & Family
Segment 5
Happy Hour
Segment 4
College/
Trainee
Segment 8
•Overall Medium Usage
•Work_Driven Weekday Pattern
•Night_Life Saturday Pattern
•High Usage in High Rate Period
•Low Mobility
•Small Sphere
•Weekday Intra_week Pattern
•Saturday Night-life Pattern
•Sunday Night-life Pattern
•Overall High Usage
•High Proportional Usage in
Low Rate
•High Proportional 011 Call
•High Proportional Mobile Call
Usage
•Very Long Call
•Medium Sphere
•High Area Concentration
•Medium Mobility
•High WAP/SMS Usage
•High Voice Mail Utilization
•Age (10’s & Early 20’s)
Segment 7
Segment 9
•Overall Very Low Usage
•Overall Very High CV
•Very High Concentration
•Very Low Mobility
Eventual Phone
•Weekday(75%), Weekend(25%)
•Weekday : 9 to 5 Working Pattern
•Saturday Daylight Activity Pattern
•Overall Medium Usage
•High Proportional Usage in High Rate
•Medium WAP Usage
•Medium SMS Usage
Pleasure Phone
New
Generation
•Weekend Intra_week Pattern
•Saturday Night Activity Pattern
•Overall Medium Usage/ Medium Call
•High Proportional Usage in Medium Rate
•High Proportional WAP Minutes
•Low Sphere / Low Mobility
•Low Usage of Call Forwarding
•Very Similar to Segment 4
Except
•Weekend Pattern
•Longest Call
•Age (10’s & Early 20’s)
8
U-communication
II. Market Driven Factors
Segmentation Brands Power
Segment Brands & Target Marketing Since 1999
Segment
Segment Brand
Brand Performance
Performance
Segment
Segment Brands
Brands Introduction
Introduction
‘99
‘99
SKT
Young Target Segment M/S Index
(July)
79.0%
‘00
‘00
LGT
(Feb.)
KTF
LGT
(July)
‘01
‘01
‘02
‘02
SKT
51.6% 51.6%
42.4%
48.4%
(May)
SKT
KTF
SKT
KTF
57.6%
(Aug.)
(Aug.)
(Oct.)
(Oct.)
(Aug)
– During 4 yrs. 10 of Segment Brands were
launched in Korea mobile market
52.7%
48.4% 47.3%
21.0%
Feb. 99 Early ‘00 Early ‘01 Early ‘02 End of ‘02
SKT
KTF
$ Young Generation Subscribers’
Demand & Satisfaction
9
U-communication
II. Market Driven Factors
Wireless Data Market Growth
 Newly Emerging Wireless Data Market In Korea : New Demands? : Data
1
Seamless SVC Demand Increase (Ubiquitous Environment)
#
Continuous Demanding Unlimited Communication &
Information Needs
Any
Time
Any
Device
Any
Place
3
Data Drive Telecommunication Service
#
100%
One Market, One Platform
Moving From Voice To Data
Total Domestic
Market Size
U$21 Billion
Total Domestic
Market Size
U$34 Billion
13%
2%
21%
7%
High Mobility, High Bandwidth Upscale Service Needs
39%
2
Biz Convergence as a Driving Force In The Market
#
Fixed
data
Mobile
data
30%
Fixed
voice
42%
Mobile
voice
Telecom.,Broadcasting, Finance, and Sales Channel are
being reformed and closely Integrated as a new value
chain
Broadcasting
Intra-ICT
46%
IntraCommunication
Telecom.
Sales
Finance
Channel
Cross-Industry
0%
2000
2005
10
U-communication
Table of Contents
I.
I. Mobile
Mobile Market
Market Situation
Situation
II.
II. Market
Market Driven
Driven Factors
Factors
III.
III. Market
Market Paradigm
Paradigm Shift
Shift
Value Driven Structure
Various Service Demands
High Speed & Multifunction
Convergence & Ubiquitous
New Driven Future Market
11
U-communication
III. Market Paradigm Shift
Value Driven Structure
 Industrial Convergence by Various Customers’ Needs, Technology Infra
Development, and Government Policy & Support
Wired Life Style (Voice Driven Market)
Wireless Life Style (Value Driven Communication)
Computer
Computer
Finance
Market Globalization
Telecommunication
Information
Finance
Telecommunication
Information
Industry Convergence
Broadcasting
Broadcasting
Ubiquitous
Environment
12
U-communication
III. Market Paradigm Shift
Comm. Infra
Various Service Demands
Various Communication Service
Terminal
Mobile Information Service
Platform
Network
-
Cellular, IMT-2000
B-WLL
Home Network
Bluetooth etc.
E
N
A
B
L
E
R
S
E
R
V
I
C
E
•
•
•
•
•
Artificial Intelligence Service
Information Multicasting
UMS, Audio/Graphic/Video Mail
Location Service : Safety Service, Smart Yellow Page
VMT Service (Information Car Navigation, etc.)
E-Commerce Service (B to C, C to C)
• Commerce Portal & Commerce Gateway
• Electronic Money/Cyber Cash, Security
• Virtual Shopping, Cyber Finance (Banking,Stocks,
Action, Insurance, etc.)
• Voice/Digital Writer /Biometrics Application Service
Entertainment · Education Service
• Virtual Campus, Virtual Studio, e-Book, Network Library
• Internet Broadcasting , e-Music, MOD, VOD,
Network Game, Multimedia Kiosk
Home Networking, Regional Networking
• Home Networking / Remote Control
• Home Care, Tele Medicine
13
U-communication
III. Market Paradigm Shift
High Speed & Multifunction
 Through Wired & Wireless Market Synergy Based on High Speed Infra, Customers
Will Be Satisfied and Enjoy End-Benefit In Real Time.
2,000
1G
2G
3G
Video Streaming
Data Transmission Speed - kbps
Still Imaging
384
Audio Streaming
144
Text Messaging
128
Video on
Demand:
Sports, News
Weather
Video
Conference
(Lower quality)
Image
Voice
64
Voice
Mail
Fax
JPEG
Still Photos
Electronic
Publishing
0
Karaoke
Data
Weather, Traffic, News,
Sports, Stock updates
E-Commerce
Mobile
Radio
E-Mail
9.6
Telephone
(Voice)
Mobile TV
Video Surveillance,
Video Mail, Travel
Electronic
Newspaper
32
Remote
Medical
Video
Service
Conference
(Medical
(High quality) image)
Audio
Voice-driven Web Pages
Streaming Audio
14
U-communication
III. Market Paradigm Shift
Convergence &Ubiquitous
Providing Very High Speed Multimedia Services
Machines-to-machines
High Function Telematics
Virtual Telecommunication
Multimedia
Sensing
3D Game
Remote Medical/Nursing
Person-to-machines
Data
Mobile
Video Conferencing
DAB/DVB
Video Telephony
Mobile TV
VOD, Video Streaming
Person-toLBS Application
person
Telematics
Phone Decoration,
Bell Sounds Download
SMS Messaging
3D Game
Voice
1G
2G
AMPS(1984)
CDMA(1996)
Voice Focus
Low Speed’s Data
9.6kbps ~ 64kbps
3G
4G
1xEV-DO(2002) WCDMA(2003)
Multimedia
Forward 2.4 Mbps
Reverse 307kbps
Average 600kbps
Multimedia
384 Kbps
~ 2 Mbps
?
Seamless Service
Ubiquitous
Max 100Mbps
Average 20Mbps
15
U-communication
III. Market Paradigm Shift
Newly Driven Future Market
Future Market Movement By Mobile Centered Convergence Environment
Expansion of Other Industries
Communi- New
Services
cation
Initial
convergence
• Customer
Needs
• Digitalization
Communicat
ion
Content
er
om
t
s
Cu text
n
Co
Computin
g
• Telecom & Other Biz
Converged Services
Mutual
Interaction
Content Computing
Industry Convergence Technology
Sta
Ne te-Of
tw
• Mobile+Internet Access ork TheArt
• Smart Phone:
Handsets+PDA
Converged
Communication Biz.
Home
Finance
Office
uCommerce
Driving
Factory
uComputing
Education
uCommuniSports
cationEntertainment
Dining
Shopping
Future
Exotic
Market
Game
...
Converged
Communica
tion
Content
Computing &
Electronics
Media
• Various Comm. Methodology’s Integration
• Mmultifunction Terminal
• Artificial Intelligence and Wearable Computing, etc.
16