content area
Press Release
SK Telecom Decides to Extend Its Self-Compliance and Maintain its Market Share in Order to Devote Itself to New Growth Engines
2005.07.06 PrintShin Bae Kim, president of SK Telecom, announced that SK Telecom will maintain its market share below 52.3% until the end of 2007
President Kim also emphasized that unnecessary concerns about market dominance is choking down development of the mobile communications market. the cooperative tie between telecom operators for finding new Growth drivers is required.
He further stated, "We are devising a variety of plans to activate WCDMA services in order to break into the market early on."
On July 6th, Shin Bae Kim, president of SK Telecom, announced at a press conference that SK Telecom will maintain its market share below 52.3% until the end of 2007 in order to devote itself to finding new growth drivers, and reduce disputes concerning unnecessary market dominance.
President Kim commented, "The 2nd generation mobile communications market has already entered into maturity. With this situation, the competition for securing new subscribers cannot ensure further growth of mobile service providers, but the creation of new growth drivers will determine the future of the domestic mobile communications market."
President Kim also said, "We have been strengthening wireless data services such as Melon, GXG, Mobile Cyworld, etc. At the same time, we have secured high-quality content for the satellite DMB service, as well as the WCDMA service. To this end, SK Telecom raised a KRW 100 billion fund with the objective of obtaining movie and music content by acquiring the shares of YBM Seoul Records and IHQ."
In addition, president Kim revealed his firm commitment to the SK Telecom plan to make a cumulative investment of KRW 1.12 trillion in a next-generation WCDMA network by the end of this year. He further stated, "We are devising a variety of plans to activate WCDMA services in order to break into the market early on."
While expressing his high expectations for success in the satellite DMB service where subscribers exceeded 75 thousand within two months, he also described some of the overseas business progress that SK Telecom is making. This includes a strong effort to successfully launch the mobile virtual network operator (MVNO) business in the U.S., after having established a joint venture company called SK Earthlink, last March. He also pointed out that the number of S-Fone service subscribers in Vietnam reached over 250 thousand, as of the end of last May.
President Kim also emphasized that unnecessary concerns about market dominance is choking down development of the mobile communications market. In order to relieve the pressure from excessive competition in this matured market, and enhance the cooperative tie between telecom operators for finding new growth drivers, SK Telecom will continue to maintain its market share below 52.3% until the end of 2007. This is an extension of the promise made in May of 2004 to keep SK Telecom’s market share below that percentage, until the end of 2005.
He revealed that this two year extension of SK Telecom’s promise that 2007 will be the tenth year since PCS providers entered into competition in the domestic market. Therefore, it is an important period of new changes and promotion of growth for late-comers. Consideration must be given to the rapidly changing market environment caused by the advent of converged mobile services, heavy competition in the mobile service market, and late-comers’ market dominance.
He also commented, "Our promise is expected to give an opportunity for a change in various regulatory systems that will help mobile service providers stay focused on new market creation and consideration for the enhancement of PCS providers’ competitive-edge, as well as the changing competition structure in the mobile communications market."
Since his inauguration last March, president Kim has stressed the importance of new growth engines in the telecom industry. As he revealed the company’s investment plans in WCDMA, and joint efforts to make entry to the global market with business partners such as content providers, SK Telecom will give an impetus to movement toward the future marketplace.
Today’s announcement is expected to give great momentum to domestic mobile service providers making new breakthroughs throughout the IT industry. The yearly average growth rate of Korean mobile communications industry recorded 21.9% in the 1990s, and decreased to 7.2% from 2000 through 2004. The growth rate for 2005 is expected to stand at a mere 3.7%.
SK Telecom’s determination took place in market situations such as overheated marketing efforts in trying to secure new subscribers and strengthen market dominance. This has occurred since the introduction of the number portability system. These efforts will create a new paradigm of competition that changes from marketing-focused competition to new business-driven competition, in the domestic mobile communications industry.
President Kim commented, "The 2nd generation mobile communications market has already entered into maturity. With this situation, the competition for securing new subscribers cannot ensure further growth of mobile service providers, but the creation of new growth drivers will determine the future of the domestic mobile communications market."
President Kim also said, "We have been strengthening wireless data services such as Melon, GXG, Mobile Cyworld, etc. At the same time, we have secured high-quality content for the satellite DMB service, as well as the WCDMA service. To this end, SK Telecom raised a KRW 100 billion fund with the objective of obtaining movie and music content by acquiring the shares of YBM Seoul Records and IHQ."
In addition, president Kim revealed his firm commitment to the SK Telecom plan to make a cumulative investment of KRW 1.12 trillion in a next-generation WCDMA network by the end of this year. He further stated, "We are devising a variety of plans to activate WCDMA services in order to break into the market early on."
While expressing his high expectations for success in the satellite DMB service where subscribers exceeded 75 thousand within two months, he also described some of the overseas business progress that SK Telecom is making. This includes a strong effort to successfully launch the mobile virtual network operator (MVNO) business in the U.S., after having established a joint venture company called SK Earthlink, last March. He also pointed out that the number of S-Fone service subscribers in Vietnam reached over 250 thousand, as of the end of last May.
President Kim also emphasized that unnecessary concerns about market dominance is choking down development of the mobile communications market. In order to relieve the pressure from excessive competition in this matured market, and enhance the cooperative tie between telecom operators for finding new growth drivers, SK Telecom will continue to maintain its market share below 52.3% until the end of 2007. This is an extension of the promise made in May of 2004 to keep SK Telecom’s market share below that percentage, until the end of 2005.
He revealed that this two year extension of SK Telecom’s promise that 2007 will be the tenth year since PCS providers entered into competition in the domestic market. Therefore, it is an important period of new changes and promotion of growth for late-comers. Consideration must be given to the rapidly changing market environment caused by the advent of converged mobile services, heavy competition in the mobile service market, and late-comers’ market dominance.
He also commented, "Our promise is expected to give an opportunity for a change in various regulatory systems that will help mobile service providers stay focused on new market creation and consideration for the enhancement of PCS providers’ competitive-edge, as well as the changing competition structure in the mobile communications market."
Since his inauguration last March, president Kim has stressed the importance of new growth engines in the telecom industry. As he revealed the company’s investment plans in WCDMA, and joint efforts to make entry to the global market with business partners such as content providers, SK Telecom will give an impetus to movement toward the future marketplace.
Today’s announcement is expected to give great momentum to domestic mobile service providers making new breakthroughs throughout the IT industry. The yearly average growth rate of Korean mobile communications industry recorded 21.9% in the 1990s, and decreased to 7.2% from 2000 through 2004. The growth rate for 2005 is expected to stand at a mere 3.7%.
SK Telecom’s determination took place in market situations such as overheated marketing efforts in trying to secure new subscribers and strengthen market dominance. This has occurred since the introduction of the number portability system. These efforts will create a new paradigm of competition that changes from marketing-focused competition to new business-driven competition, in the domestic mobile communications industry.