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Press Release
Net increase of 630,000 this year with local service S-Fone, deployment of nationwide network,
Accelerated increase in subscribers due to Vietnam’s first EVDO-based VOD/MOD services in October.
Secure 4 million subscribers by 2008 to leap forward as a major carrier.
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SK Telecom`s global business has signaled aggressive growth as subscribers in the Vietnam market exceeded 1 million.
SK Telecom’s global business has signaled aggressive growth as subscribers in the Vietnam market exceeded 1 million.
Subscribers to "S-Fone", the Vietnamese CDMA mobile communications service with participation of SLD Telecom, a joint venture led by SK Telecom, reached 1 million on September 27.
Generally, in the mobile communications industry, reaching the 1 million subscriber mark is judged as an important point of transition for aggressive growth, as competitiveness is heightened in terms of handset demand/supply and deployment of distribution networks, while services are lifted to a more advanced level with the adoption of various value-added services. As S-Phone subscribers exceed 1 million, SK Telecom’s global business, which has aimed for broad foreign advancements, is expected to consolidate itself as a new engine for growth that produces significant achievements.
For SK Telecom to reach the 1 million subscriber target, a major gateway to ramp as a major carrier in Vietnam, the November decision for capital increase played a definitive role. S-Fone, which launched services in July 2003, had experienced some difficulty in attaining subscribers last year due to the limited areas allowing calls compared to leading carriers.
As Vietnam held healthy macroeconomic indicators, continuing to record growth of 7~8%, with a mobile phone penetration rate of 5.8% in 2004 and 12% in 2005, and the mobile phone market maintaining a rapid growth trend, SK Telecom judged it to be a timely opportunity to invest in the Vietnam market, and made the decision of a USD 28 billion capital increase.
Along with the capital increase, S-Fone, which has announced this year an important basis for aggressive growth, has expanded service coverage for the first half, along with intensive marketing. This has resulted in a net increase in subscribers, of 370,000 at the end of last year to 630,000 this year, resulting in a total in excess of 1 million. This was a great achievement resulting after three years and three months since launch of services.
In terms of marketing, S-Fone was able to successfully accomplish the "Quantum Jump" project for acquisition of subscribers of significant size, through 1) adoption of the SIM card method, 2) improved product power through new fee plans, 3) strengthened handset competitiveness, 4) expanded distribution network, and 5) adoption of new services.
In November of last year, S-Fone adopted the SIM card method, to meet the characteristics of the Vietnam market and satisfy customer needs. For this, marketing infrastructure such as the distribution network, handsets, fee plans and billing systems were built.
Although billing per minute is prevalent in the Vietnam market, S- Fone launched its business with a system of billing every 10 seconds for the first time in the market, and led fee policies by launching diverse optional fee plans. In March, the "Forever Fee Plan", which had abolished the prepaid incoming/outgoing period restriction, sparked off a rapid increase in subscribers. In August, the "Forever Couple" fee plan, which allows unlimited calls to a designated line within the network, was launched to further improve fee competitiveness.
Along with the launch of the new fee plan, promotion techniques that had proven effective in Korea, such as provision of free calls, opportunities to watch the Germany World Cup Games, cashback promotions that return payment of usage during month following subscription, free entry into movie theatres on Friday, etc. were applied on location, contributing greatly to the solicitation of subscribers.
Efforts were also made to strengthen handset competitiveness, such as by supplying competitive handsets of major manufacturers such as Samsung and Motorola on a timely basis, and improving distribution competitiveness by expanding distribution of SIM cards/handsets through the extensive GSM distribution network and engaging in joint promotion with well-known makers.
S-Fone, which provided connection tone services and high-tech value-added services since launch of business, also released a series of new value-added services this year, such as "International SMS service", "SMS information service", and Web-Chat service (wireless/wireline connected).
To strengthen network competitiveness, 200 base stations were newly built in the first half, while service regions, which were restricted to the major cities of the existing 37 provinces, were expanded to cover the 64 total provinces. Call quality was also improved, by applying up-to-date operation techniques for quality improvement, such as optimization of base station networks.
S-Fone is conducting its project for the second half (the second Quantum Jump) with the target of at least 1.2 million cumulative subscribers by the end of the year.
To achieve this goal, from October 4, S-Fone launched VOD/MOD services based on the EVOD network for the first time in Vietnam in five major cities including Hanoi, Ho Chi Minh, and Da Nang. EVDO services consist of real time TV (6 channels), movies, drama, and music video, and with killer content differentiated from competitors, are expected to spark not only an increase in ARPU but also growth in subscribers. Korean cultural content, including Korean dramas highly popular in Vietnam, are also planned for provision, raising the expectation of joint entry of content related businesses in the future.
In addition, S-Fone plans to deploy 320 base stations in the second half, to expand coverage over population up to 71%, devising diverse fee policies, additionally acquiring a large distribution network, and creating a new brand image by rearranging BI (Brand Identity) and SI (Shop Identity).
To celebrate hitting the 1 million subscriber target, S-fone plans to initiate large-scale customer promotion events, such as providing free calls and free SMS for two months from October 1, and providing lavish gifts randomly to existing customers.
With a population of 84 million, as of the end of July 2006, the mobile phone penetration rate in the Vietnam market was 18.5%, while this year, net subscriber increase exceeded a monthly average of 800,000. The market itself is showing consistent growth, and the future business outlook is quite bright.
From 1996, SK Telecom implemented the "free surgery for facially deformed Vietnamese children" program, and up to this year brought back the smiles on the faces of 2,300 deformed children during the past 11 years. This was before SK Telecom began business in Vietnam, and was possible because of its determination to engage in social contribution activities, with a long term perspective rather than the pursuit of short-term interests. Going forward, SK Telecom plans to endeavor in social contribution activities such as the "S-Fone library business", which aims to resolve the problem of insufficient libraries in Vietnam, and the establishment of the "SKT IT Center" to provide IT and language education programs to Vietnamese youngsters.
SK Telecom’s CEO Shin-Bae Kim remarked, "Vietnam’s S-Fone subscribers exceeding 1 million will be an important milestone reconfirming the direction that Korea’s telecommunications industry must take. Through aggressive entry overseas, SK Telecom will contribute in establishing a new growth model that will enable the joint development of related industries such as communication services, content, and handsets, and lead the growth in national competitiveness.
Subscribers to "S-Fone", the Vietnamese CDMA mobile communications service with participation of SLD Telecom, a joint venture led by SK Telecom, reached 1 million on September 27.
Generally, in the mobile communications industry, reaching the 1 million subscriber mark is judged as an important point of transition for aggressive growth, as competitiveness is heightened in terms of handset demand/supply and deployment of distribution networks, while services are lifted to a more advanced level with the adoption of various value-added services. As S-Phone subscribers exceed 1 million, SK Telecom’s global business, which has aimed for broad foreign advancements, is expected to consolidate itself as a new engine for growth that produces significant achievements.
For SK Telecom to reach the 1 million subscriber target, a major gateway to ramp as a major carrier in Vietnam, the November decision for capital increase played a definitive role. S-Fone, which launched services in July 2003, had experienced some difficulty in attaining subscribers last year due to the limited areas allowing calls compared to leading carriers.
As Vietnam held healthy macroeconomic indicators, continuing to record growth of 7~8%, with a mobile phone penetration rate of 5.8% in 2004 and 12% in 2005, and the mobile phone market maintaining a rapid growth trend, SK Telecom judged it to be a timely opportunity to invest in the Vietnam market, and made the decision of a USD 28 billion capital increase.
Along with the capital increase, S-Fone, which has announced this year an important basis for aggressive growth, has expanded service coverage for the first half, along with intensive marketing. This has resulted in a net increase in subscribers, of 370,000 at the end of last year to 630,000 this year, resulting in a total in excess of 1 million. This was a great achievement resulting after three years and three months since launch of services.
In terms of marketing, S-Fone was able to successfully accomplish the "Quantum Jump" project for acquisition of subscribers of significant size, through 1) adoption of the SIM card method, 2) improved product power through new fee plans, 3) strengthened handset competitiveness, 4) expanded distribution network, and 5) adoption of new services.
In November of last year, S-Fone adopted the SIM card method, to meet the characteristics of the Vietnam market and satisfy customer needs. For this, marketing infrastructure such as the distribution network, handsets, fee plans and billing systems were built.
Although billing per minute is prevalent in the Vietnam market, S- Fone launched its business with a system of billing every 10 seconds for the first time in the market, and led fee policies by launching diverse optional fee plans. In March, the "Forever Fee Plan", which had abolished the prepaid incoming/outgoing period restriction, sparked off a rapid increase in subscribers. In August, the "Forever Couple" fee plan, which allows unlimited calls to a designated line within the network, was launched to further improve fee competitiveness.
Along with the launch of the new fee plan, promotion techniques that had proven effective in Korea, such as provision of free calls, opportunities to watch the Germany World Cup Games, cashback promotions that return payment of usage during month following subscription, free entry into movie theatres on Friday, etc. were applied on location, contributing greatly to the solicitation of subscribers.
Efforts were also made to strengthen handset competitiveness, such as by supplying competitive handsets of major manufacturers such as Samsung and Motorola on a timely basis, and improving distribution competitiveness by expanding distribution of SIM cards/handsets through the extensive GSM distribution network and engaging in joint promotion with well-known makers.
S-Fone, which provided connection tone services and high-tech value-added services since launch of business, also released a series of new value-added services this year, such as "International SMS service", "SMS information service", and Web-Chat service (wireless/wireline connected).
To strengthen network competitiveness, 200 base stations were newly built in the first half, while service regions, which were restricted to the major cities of the existing 37 provinces, were expanded to cover the 64 total provinces. Call quality was also improved, by applying up-to-date operation techniques for quality improvement, such as optimization of base station networks.
S-Fone is conducting its project for the second half (the second Quantum Jump) with the target of at least 1.2 million cumulative subscribers by the end of the year.
To achieve this goal, from October 4, S-Fone launched VOD/MOD services based on the EVOD network for the first time in Vietnam in five major cities including Hanoi, Ho Chi Minh, and Da Nang. EVDO services consist of real time TV (6 channels), movies, drama, and music video, and with killer content differentiated from competitors, are expected to spark not only an increase in ARPU but also growth in subscribers. Korean cultural content, including Korean dramas highly popular in Vietnam, are also planned for provision, raising the expectation of joint entry of content related businesses in the future.
In addition, S-Fone plans to deploy 320 base stations in the second half, to expand coverage over population up to 71%, devising diverse fee policies, additionally acquiring a large distribution network, and creating a new brand image by rearranging BI (Brand Identity) and SI (Shop Identity).
To celebrate hitting the 1 million subscriber target, S-fone plans to initiate large-scale customer promotion events, such as providing free calls and free SMS for two months from October 1, and providing lavish gifts randomly to existing customers.
With a population of 84 million, as of the end of July 2006, the mobile phone penetration rate in the Vietnam market was 18.5%, while this year, net subscriber increase exceeded a monthly average of 800,000. The market itself is showing consistent growth, and the future business outlook is quite bright.
From 1996, SK Telecom implemented the "free surgery for facially deformed Vietnamese children" program, and up to this year brought back the smiles on the faces of 2,300 deformed children during the past 11 years. This was before SK Telecom began business in Vietnam, and was possible because of its determination to engage in social contribution activities, with a long term perspective rather than the pursuit of short-term interests. Going forward, SK Telecom plans to endeavor in social contribution activities such as the "S-Fone library business", which aims to resolve the problem of insufficient libraries in Vietnam, and the establishment of the "SKT IT Center" to provide IT and language education programs to Vietnamese youngsters.
SK Telecom’s CEO Shin-Bae Kim remarked, "Vietnam’s S-Fone subscribers exceeding 1 million will be an important milestone reconfirming the direction that Korea’s telecommunications industry must take. Through aggressive entry overseas, SK Telecom will contribute in establishing a new growth model that will enable the joint development of related industries such as communication services, content, and handsets, and lead the growth in national competitiveness.