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Press Release
SK Telecom Holds Explanatory Meeting on Satellite DMB Business for Key Industry Members and Investors.
2003.10.09 PrintPlans to Form a consortium by October, and complete the establishment of a satellite DMB company by December, of this year
SK Telecom officials reveal that regulation back-up for the Satellite DMB Business is required to increase industrial competitiveness, and to prevent the loss of national resources.
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Attendees at SK Tekecom`s Explanation Meeting on the Satellite DMB Business
On the 9th of October, SK Telecom held a Public Explanatory Meeting in the Convention Hall of the Seoul Financial Center to explain its new satellite Digital Multimedia Broadcasting business(DMB) to investors and key industry representatives. Shin Bae Kim, head of SK Telecom’s Strategic Planning Managerial Group, and Sang Gil Lee, head of SK Telecom’s PMSB Business Group, participated in the meeting.
Among the 300 attendees, were general investors and representatives of companies related to the satellite DMB business. This included broadcasting, channel providing, equipment manufacturing, and distribution companies. At the meeting, SK Telecom announced, that by the end of this month, it will form a consortium that consists of companies that possess core capabilities for this business. Securing a business license to operate the new service will soon follow.
SK Telecom also revealed that after forming the consortium by the end of October, it will set up a satellite DMB company with an initial capital of KW100 billion ($85.5 million) by the end of December, in order to prepare for a full-fledged launch of the service.
To successfully launch the satellite DMB business, SK Telecom is committed to taking the following 4 steps: 1. Checking out potential demand. 2. Concentrating on the core competencies of network technology and marketing. 3. Cutting costs by sharing service distribution networks, base-stations and a satellite. 4. Maximizing core resources through the consortium
In particular, the company revealed that it will achieve BEP by 2006, and accumulated BEP by 2008. Therefore, the shareholding companies should realize investment profits at a relatively early stage.
Pursuant to the consortium-related law, SK Telecom will take part in the satellite DMB company as a major shareholder. An equipment manufacturer, an automobile manufacturer, a broadcasting company, and a telecom operator will hold about 40~50% of equity shares (5~10% for each company). In addition, an affiliated foreign company will have 10%, and other general investors will take 10~20% of the shares. !
Jun Dong Bae, vice-president of SK Telecom’s PMSB Business Group, commented, "Government regulation and systematic back-up of the Satellite DMB Business is required to help it successfully enter the market and grow. To introduce the Satellite DMB service into the market, the Broadcasting Law has to be revised first. If the revision of the law is delayed substantially, the best alternative policy would be to adopt special measures that allow introduction of the service separately from actual revision of the law. This would prevent the loss of national resources", he added.
Satellite DMB is a new service that will allow subscribers to access all multimedia channels-at any time, anywhere-via special receivers in mobile handsets and automobiles.
Among the 300 attendees, were general investors and representatives of companies related to the satellite DMB business. This included broadcasting, channel providing, equipment manufacturing, and distribution companies. At the meeting, SK Telecom announced, that by the end of this month, it will form a consortium that consists of companies that possess core capabilities for this business. Securing a business license to operate the new service will soon follow.
SK Telecom also revealed that after forming the consortium by the end of October, it will set up a satellite DMB company with an initial capital of KW100 billion ($85.5 million) by the end of December, in order to prepare for a full-fledged launch of the service.
To successfully launch the satellite DMB business, SK Telecom is committed to taking the following 4 steps: 1. Checking out potential demand. 2. Concentrating on the core competencies of network technology and marketing. 3. Cutting costs by sharing service distribution networks, base-stations and a satellite. 4. Maximizing core resources through the consortium
In particular, the company revealed that it will achieve BEP by 2006, and accumulated BEP by 2008. Therefore, the shareholding companies should realize investment profits at a relatively early stage.
Pursuant to the consortium-related law, SK Telecom will take part in the satellite DMB company as a major shareholder. An equipment manufacturer, an automobile manufacturer, a broadcasting company, and a telecom operator will hold about 40~50% of equity shares (5~10% for each company). In addition, an affiliated foreign company will have 10%, and other general investors will take 10~20% of the shares. !
Jun Dong Bae, vice-president of SK Telecom’s PMSB Business Group, commented, "Government regulation and systematic back-up of the Satellite DMB Business is required to help it successfully enter the market and grow. To introduce the Satellite DMB service into the market, the Broadcasting Law has to be revised first. If the revision of the law is delayed substantially, the best alternative policy would be to adopt special measures that allow introduction of the service separately from actual revision of the law. This would prevent the loss of national resources", he added.
Satellite DMB is a new service that will allow subscribers to access all multimedia channels-at any time, anywhere-via special receivers in mobile handsets and automobiles.