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South Korea - Telecoms, Mobile, Broadband and Forecasts

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Strong LTE and FttX growth continues as data use surges across fixed and mobile networks

South Korea has one of the world’s most active telecommunications and Information Technology markets backed by strong support from the government. Spending on ICT and high-technology equipment helped lead a transformation of the economy to one that is more progressively knowledge based. Having invested significantly in ‘basic’ telecommunications infrastructure over past decades, the country has well developed submarine cable and satellite infrastructure as well as solid internet resources to support the growing demand for national and international communications. The government aims to transform the country into a knowledge-based information society in a ‘smart-age’.

The South Korean Government committed to transitioning the country to digital terrestrial, digital cable and digital satellite TV broadcasting by 2012. The pressure created by convergence had South Korea rewrite its regulatory arrangements for the broadcasting and communications sector. The operators continue to invest heavily in fibre based broadband deployments and IPTV subscriptions have passed the 6 million mark as more content is available and the operators are able to compete more effectively with their own live broadcasts.

South Korea continues to be a booming mobile market as it innovatively explores the options for value-added services. The market passed the 110% penetration rate mark into 2013 with many individuals carrying at least one mobile phone. Having launched 3G networks in 2003, these accounted for over 75% of all subscriptions. New investments are intended to drive revenue and gain market share and the year has seen strong growth in LTE after launching in 2011 and a rapid increase in smartphone adoption.

South Korea has the world’s highest number of broadband services per capita. Into 2013 over 37% of the population and 90% of households were broadband subscribers. FttX accounted for over 60% of total subscriptions. Since 2006, Korea’s policy emphasis has been on completing a BcN with wireline speeds of 50-100Mb/s per household and 1-2Mb/s on wireless connections. The plan moving forward is for a UBcN (Ultra Broadband convergence Network) with 1Gb/s speeds on fixed lines or 10Mb/s on wireless by 2012/13. In addition to upgrades to the backbone network a plan was established to link the public sector to a sensor network in 2012.

The drive towards a ‘new economy’ has seen significant investments in Smart Infrastructure including Cloud Computing, Smart Grids and Smart Cities. The emergence of a National Strategy for Green IT has seen government promotion of new industry creation into 2018 such as 4G broadcasts and 3D and Smart television.

Market highlights:

  • Into 2013, fibre technology accounted for over 60% of all broadband subscribers in South Korea while ADSL subscriptions had declined to close to 10%, the balance being accounted for by cable modem subscribers
  • Mobile penetration increased to 110%; Strong LTE demand was enabled by the introduction of more smartphones into the market and has seen an uptrend in ARPU
  • LT data usage is reported at least 50% higher compared with 3G at 1.6GB and 1.2GB respectively as reported by SK Telecom end June 2012. Samsung reports figures as high as 2.9GB of data on average a month compared with 1.2GB for 3G users
  • LTE-Advanced testing continued
  • HD voice over LTE (VoLTE) was launched by SK Telecom
  • Multi-carrier technology on 800MHz and 1.8GHz bands was launched in a world first
  • The introduction of MVNO services saw subscriptions near one million entering 2013
  • Spectrum auctions were held raising over US$1.5 billion for 10 year licence allocations
  • Wi-Fi and femtocell investments increased to reduce pressure on the core mobile networks
  • A Smart Grid pilot is underway on Jeju Island with plans for a nationwide Smart Grid by 2030
  • Green Economy initiatives are driving investments in Smart Cities

South Korea – key telecom parameters – 2011 - 2013

  • Sector | 2011 | 2012 (e) | 2013 (e) |
  • Internet users (million) |   |   |   |
  • Internet users | 37.2 | 37.4 | 37.5 |
  • Broadband subscribers (million) |   |   |   |
  • Total broadband subscribers | 17.8 | 18.5 | 19.3 |
  • Broadband penetration | 36.5% | 37.8% | 39.3% |
  • Subscribers to telecoms services (million) |   |   |   |
  • Fixed-line telephones | 18.6 | 18.1 | 17.9 |
  • Mobile phones | 52.5 | 53.6 | 54.6 |

For those needing high level strategic analysis and objective analysis on Korea, this report is essential reading and gives further information on:

  • The New Songdo City Development planned to be a future Korean “Smart City”
  • The Government’s “Smart Work” initiative that aims to have 30% of public employees work from home or smart-work centres by 2015 with smartphones, laptops and other mobile devices.
  • WiBro subscribers passing the 900,000 mark after investments of over KRW 2 trillion.
  • the country’s goal to capture 10% of the global cloud services market by 2014 and to halve the cost of operating the public sector’s ICT infrastructure
  • the development of new technologies such as controlling a screen with one’s gaze
  • trials of 3D broadcasts in tandem with regular 2D broadcastsdirect deals by Samsung with companies including Skype and music streamer Spotify.

Table of Contents

1. Key Statistics

2. Country Overview
2.1 Background
2.2 South Korea’s economy

3. Telecommunications Market
3.1 Government support
3.2 ICT industry as an engine of economic growth
3.3 Communication industry revenue by type
3.4 Global rankings and South Korea
3.4.1 Government Broadband Index - EIU
3.4.2 Global Innovation Index – INSEAD
3.5 Telecommunications market sectors
3.5.1 Fixed-line and mobile services
3.5.2 Broadband in South Korea

4. Regulatory Environment
4.1 KCC – Overview and responsibilities
4.2 KCC – related laws
4.3 National Internet Development Agency of Korea (NIDA)
4.4 Policy overview

5. Major Operators
5.1 Overview of Major Telecom Operators
5.2 KT Corp
5.2.1 Company overview
5.2.2 Company background
5.2.3 KT Corp: Financial statistics
5.2.4 KT Corp: Operations statistics
5.3 SK Broadband
5.3.1 Company overview
5.3.2 Company background
5.3.3 SK Broadband: Financial statistics
5.3.4 SK Broadband: Operations statistics
5.4 SK Telecom
5.4.1 Company overview
5.4.2 Company background
5.4.3 SK Telecom: Financial statistics
5.4.4 SK Telecom: Operations statistics
5.4.5 SK Telecom: LTE 2.0 plans
5.4.6 SK Planet
5.5 LG U+
5.5.1 Company overview
5.5.2 LG U+: Financial statistics
5.5.3 LG U+: Operations statistics
5.5.4 LG U+: “Beyond Telecom” initiatives

6. Telecommunications Infrastructure
6.1 Infrastructure investment overview
6.2 Infrastructure investment stages of growth
6.2.1 Ubiquitous Korea (u-Korea)
6.3 Green IT in South Korea
6.4 Top 10 ICT focus areas: 2010 - 2018
6.5 New Technology Development
6.5.1 Controlling TVs with one’s eyes
6.6 National submarine cable infrastructure
6.7 International submarine cable infrastructure
6.8 Satellite infrastructure
6.9 Internet infrastructure
6.9.1 Internet eXchange (IX)
6.9.2 South Korea registered domains
6.9.3 IPv6
6.9.4 South Korea international internet bandwidth
6.10 Smart grids
6.10.1 Smart grid: new laws
6.10.2 Smart grid stages: 2010 - 2030
6.10.3 Five smart grid implementation areas
6.10.4 Jeju Island
6.11 Smart cities
6.11.1 New Songdo City
6.11.2 Busan

7. Internet Market
7.1 Internet statistics
7.1.1 South Korea internet users
7.1.2 South Korea internet subscribers
7.1.3 South Korea ICT usage by household
7.1.4 Changes in the average internet user by activity– 2000 vs 2010, 2011
7.1.5 Distribution of internet users by region - 2010
7.2 Internet usage patterns
7.3 Internet usage by the socially disadvantaged
7.4 Internet media consumption

8. Broadband Market
8.1 Background
8.1.1 Broadband success criteria
8.2 Overview
8.3 Broadband statistics
8.4 Operator broadband subscribers
8.5 Broadband subscribers by access type
8.6 Bundled services usage rate by type
8.7 Broadband government targets
8.7.1 Broadband convergence Network
8.7.2 Ultra Broadband convergence Network
8.7.3 Broadband speed results
8.8 Broadband technologies
8.8.1 Overview
8.8.2 Cable modem
8.8.3 Digital Subscriber Line (DSL)
8.8.4 Apartment LAN
8.8.5 Fibre-to-the-Home
8.9 Wireless broadband
8.9.1 Wireless Local Area Network (WLAN)/Wireless Fidelity (WiFi)
8.9.2 WiBro
8.10 Voice over Internet Protocol (VoIP)
8.11 Broadband TV
8.11.1 Triple play background
8.11.2 Internet protocol TV (IPTV)

9. Digital Media / Digital Economy
9.1 National television networks
9.2 Digital TV
9.3 Satellite TV
9.3.1 KT SkyLife (Korea Digital Broadcasting Co Ltd)
9.4 Cable TV (CATV)
9.4.1 Cable TV broadcasters
9.4.2 Digital cable TV
9.5 Broadcasting deregulation
9.6 Nationwide Terrestrial 3D Broadcast
9.7 TV Music Streaming
9.8 E-commerce
9.8.1 E-commerce background
9.8.2 E-commerce volumes
9.8.3 E-Banking
9.9 E-government
9.9.1 Background
9.9.2 e-Government focus areas
9.9.3 e-Government achievements to 2008
9.9.4 Next Generation e-government plan: 2008 - 2012
9.9.5 Global e-government survey rank 2012
9.10 E-entertainment
9.10.1 Online gaming
9.10.2 Online music
9.10.3 Social networking
9.11 E-services
9.11.1 Online trading
9.11.2 Online shopping
9.11.3 E-learning
9.11.4 Internet search engines

10. Mobile Communications
10.1 Overview of South Korea’s mobile market
10.2 Background of South Korea’s mobile market
10.3 Mobile statistics
10.3.1 Mobile subscribers 1985 - 2013
10.3.2 Mobile subscribers by operator
10.3.3 Mobile ARPU by operator
10.4 Fourth mobile operator to enter market?
10.4.1 KMI
10.4.2 Kbiz
10.5 MVNOs
10.6 Spectrum auctions: 1.2GHz, 1.8GHz and 800MHz
10.7 Mobile technologies
10.7.1 Analogue (AMPS)
10.7.2 Personal Communication Service (PCS)
10.7.3 Code Division Multiple Access (CDMA)
10.7.4 Wideband CDMA (WCDMA)
10.7.5 LTE
10.7.6 Voice over LTE
10.7.7 Smartphones
10.8 Mobile data services
10.8.1 Market overview
10.8.2 Wireless Internet NIDA survey 2010
10.9 Mobile content and applications
10.9.1 Overview
10.9.2 M-commerce/m-payment
10.9.3 Mobile banking (m-banking)
10.9.4 Mobile government (m-government)
10.9.5 Apps Stores
10.9.6 Mobile advertising
10.9.7 NFC chips in smartphones
10.9.8 Mobile TV
10.9.9 Mobile learning
10.9.10 OTT Voice

11. Forecasts
11.1 Forecast Fixed-line subscribers – 2012 - 2013; 2017
11.2 Forecast Broadband subscribers – 2011 - 2012; 2017
11.3 Forecast: Mobile subscribers 2012- 2013; 2017
11.4 Forecast Internet users – 2011 - 2012; 2016

12. Glossary of Abbreviations

List of Tables

Table 1 – Country statistics South Korea – 2012
Table 2 – Telecom revenue and investment statistics – 2011
Table 3 – Telephone network statistics – September 2012
Table 4 – Internet user statistics – December 2011
Table 5 – Broadband statistics – August 2012
Table 6 – Mobile statistics – March 2012
Table 7 – National telecommunications authorities
Table 8 – South Korea GDP and GDP per capita – 2000 - 2017
Table 9 – Growth of ICT industry – 2003 - 2010
Table 10 – Average growth rate per GDP and medium over 10 years from 2001 to 2010
Table 11 – Telecommunications fixed-line, mobile, total revenue and investment – 2000 - 2009
Table 12 – Wireline communication service revenue by sector – 2008 - 2011
Table 13 – Wireless communication service revenue by sector – 2008 - 2011
Table 14 – Fixed and mobile lines in service and teledensity – 1991 – 2013
Table 15 – KT Corp’s fixed-line subscribers and market share – 2004 - 2012
Table 16 – Telephony (PSTN + VoIP) subscribers, market share by operator – September 2012
Table 17 –Telephone lines by operator (PSTN) – 2005 - 2012
Table 18 –Telephone lines by operator (VoIP) – 2006 - 2012
Table 19 – Broadband internet subscribers by operator – 2005 - 2012
Table 20 – Broadband internet market share by operator – 2005 – 2012
Table 21 – KT Corp revenue, net profit, capex – 2008 – 2011
Table 22 – KT Corp capex – 2010
Table 23 – KT Corp’s fixed-line (PSTN) subscribers and market share – 2003 - 2012
Table 24 – KT Corp’s VoIP and total subscribers – 2008 - 2012
Table 25 – KT Corp’s broadband internet subscribers and market share – 2003 - 2012
Table 26 – KT Corp’s IPTV subscribers – 2006 - 2012
Table 27 – KT Corp’s WiBro subscribers – 2007 - 2012
Table 28 – KT Corp’s mobile and 3G subscribers and total market share – 2004 – 2012
Table 29 – KT’s Voice and data ARPU – 2004 – 2011
Table 30 – KT’s smartphone subscriber trend – Q4 2009 – Q3 2012
Table 31 – SK Broadband revenue, net income, capex, EBITDA – 2003 - 2011
Table 32 – SK Broadband operating revenue split – 2008 - 2011
Table 33 – SK Broadband capex – 2006 - 2011
Table 34 – SK Broadband - broadband internet subscribers – 2005 - 2012
Table 35 – SK Broadband ‘B tv’ TV subscribers – 2006-2012
Table 36 – SK Telecom revenue, net profit, capex, EBITDA margin – 2005 - 2011
Table 37 – SK Telecom mobile and 3G subscribers, ARPU – 2002 - 2011
Table 38 –LG U+ revenue, net income, EBITDA – 2009 – 2011
Table 39 –LG U+ revenue breakdown by service – 2009 – 2011
Table 40 – LG U+ capex – 2009 – 2011
Table 41 – LG Telecom mobile subscribers, ARPU – 2003 - 2012
Table 42 – LG Telecom fixed-line (PSTN and VoIP) subscribers – 2005 - 2012
Table 43 – LG U+ broadband subscribers – 2004 – 2012
Table 44 – LG U+ IPTV subscribers – 2007 – 2012
Table 45 – Registered .kr domains – 1993 - 2012
Table 46 – Number of IPv4 and IPv6 addresses – 1997 - 2012
Table 47 – International bandwidth – 1997 - 2010
Table 48 – Smart grid investment to 2015
Table 49 – Internet users and population penetration rates – 1994 - 2013
Table 50 – Internet subscribers – 1996 - 2013
Table 51 – Personal computers and penetration by population and household – 2000 - 2011
Table 52 – Changes in the average internet user by activity– 2000 versus 2010, 2011
Table 53 – Population and internet users by region - 2010
Table 54 – Internet usage rates by service– 2009 - 2011
Table 55 – Main purpose of using the internet – 2009 - 2011
Table 56 – Households with ICT devices – 2010
Table 57 – Internet usage rate of the socially disadvantaged – 2003 - 2009
Table 58 – Computer penetration rate in the socially disadvantaged households – 2003 - 2009
Table 59 – Online versus offline media consumption – 2010
Table 60 – Broadband internet subscriber growth and penetration rate – 1998 - 2013
Table 61 – Broadband subscribers and households – August 2012
Table 62 – Broadband market share by operator – August 2012
Table 63 – Broadband internet subscriber numbers by system – 1998 - 2012
Table 64 – Bundled service usage pattern: households using bundled services– 2011
Table 65 – BcN implementation in households/subscribers – 2005; 2006 - 2011
Table 66 – UBcN implementation goals in households/subscribers – 2009 - 2013
Table 67 – Broadband subscribers by access type – August 2012
Table 68 – Cable modem subscribers – 1999 – 2012
Table 69 – Broadband cable modem (HFC) subscribers by service provider – August 2012
Table 70 – DSL subscribers – 1999 – 2012
Table 71 – DSL subscribers by service provider – August 2012
Table 72 – A-LAN subscribers – 2002 - 2012
Table 73 – A-LAN subscribers by service provider – August 2012
Table 74 – FttH subscribers – 2006 - 2012
Table 75 – FttH subscribers by service provider – August 2012
Table 76 – KT and SK Telecom WiBro subscribers – 2006 - 2012
Table 77 – KT and SK Telecom WiBro domestic investment plans – 2006 - 2011
Table 78 – South Korea VoIP subscribers by major operator and market share – June 2011
Table 79 – South Korea VoIP subscribers – 2006 - 2011
Table 80 – IPTV subscribers by operator – 2006 - 2012
Table 81 – IPTV growth by channels, content providers, after-school classrooms – 2008 - 2010
Table 82 – IPTV real-time and pre-IPTV subscribers – 2008 - 2012
Table 83 – DTH subscribers – 2002 – 2012
Table 84 –Cable TV operators and subscribers – Q2 2010
Table 85 – Analogue and digital cable TV subscribers – 2002 – 2010, 2012 (e)
Table 86 – Comparison of cost per cable TV subscriber – 2009
Table 87 – E-commerce volume – 2001 - 2011
Table 88 – E-commerce volume by transaction type – 2001 - 2011
Table 89 – Internet banking service subscribers – 2001 - 2010
Table 90 – Financial service by delivery channel – 2005 – 2010
Table 91 – E-tax usage rates – 2002 - 2007
Table 92 – Online game market volume – 2002 - 2009
Table 93 – Digital music market volume – 2003 - 2009
Table 94 – Usage rates by types of social networking service – 2011
Table 95 – Online stock trading customers – 2004 - 2007
Table 96 – Purchase items by internet shopping – 2010
Table 97 – E-learning user market volume – 2004 - 2008
Table 98 – Internet search engine market share – May 2011
Table 99 – Mobile subscribers – 1985 - 2013
Table 100 – Mobile subscribers and annual change by operator and technology – September 2012
Table 101 – Mobile operator market share – 2002 - 2012
Table 102 – Mobile subscribers by operator – 2002 – 2011
Table 103 – Blended mobile ARPU by operator – 3Q 2012
Table 104 – Mobile Service ARPU per month by operator – 1Q 2011 – 3Q 2012
Table 105 – CDMA mobile subscribers by operator – 2002 - 2012
Table 106 – WCDMA subscribers by operator – September 2012
Table 107 – LTE mobile subscribers by operator – 2011 – 2012
Table 108 – Smart phone subscribers and market share – 2009 - 2011
Table 109 – Forecast smart phone and tablet PC subscribers and market share – 2010 – 2015
Table 110 – Purpose of using mobile phone wireless internet – 2009 - 2010
Table 111 – Wireless internet device usage - 2010
Table 112 – Mobile banking service subscribers – 2003 – 2010
Table 113 – Forecast fixed-line subscribers and penetration - higher band: 2012 - 2013; 2017
Table 114 – Forecast fixed-line subscribers and penetration - lower band: 2012 - 2013; 2017
Table 115 – Forecast broadband subscribers and penetration – higher band: 2012 - 2013; 2017
Table 116 – Forecast broadband subscribers and penetration – lower band: 2012 - 2013; 2017
Table 117 – Forecast mobile subscribers and penetration lower band forecast – 2011 - 2012; 2017
Table 118 – Forecast mobile subscribers and penetration higher band forecast – 2011 - 2012; 2017
Table 119 – Forecast internet users and penetration - higher band: 2012 - 2013; 2017
Table 120 – Forecast internet users and penetration - lower band: 2012 - 2013; 2017

List of Charts

Chart 1: Telecommunications revenue breakdown – 2000 versus 2009
Chart 2 – South Korea fixed-line and mobile subscribers – 2000 - 2013
Chart 3 – PSTN and VoIP subscribers by major operators – 2006 - 2012
Chart 4 – Broadband internet subscribers by operator – 2005 - 2012
Chart 5 – KT mobile subscribers by network, voice and data ARPU – 2004 – 2011
Chart 6 – SK Telecom revenue, capex, ARPU – 2005 - 2011
Chart 7 – LG U+ revenue, capex, ARPU – 2009 - 2011
Chart 8 – Number of internet users and growth rate in South Korea – 2000 - 2013
Chart 9: Households with ICT service access by type: 2009 - 2010
Chart 10: Rate of households with internet access – 2002 - 2011
Chart 11 – South Korea broadband subscribers and population penetration – 2000 - 2013
Chart 12 – South Korea share of broadband subscribers by technology – 1998 - 2012
Chart 13 – South Korea DSL and Fibre subscribers – 2002 - 2012
Chart 14 – South Korea mobile subscriber growth, population penetration – 1995 - 2013
Chart 15 – Operator total market share versus LTE market share – September 2012
Chart 16 – South Korea mobile subscribers by operator – 2002 - 2012
Chart 17: Trends in wireless internet usage rate – 2002 - 2010
Chart 18 – South Korea mobile banking subscribers – 2003 - 2010

List of Exhibits

Exhibit 1 – Map of South Korea
Exhibit 2 – Significant telecoms operators in South Korea
Exhibit 3 – KT at a glance – December 2011
Exhibit 4 – SK Broadband at a glance – December 2011
Exhibit 5 – SK Telecom at a glance – December 2011
Exhibit 6 – LG U+ at a glance – December 2011
Exhibit 7 – Informatisation policies and paradigms – 1998 - 2012
Exhibit 8 – Informatisation Promotion: Execution body
Exhibit 9 – Green IT promotion strategies of domestic companies
Exhibit 10 – National submarine fibre optic cables overview in South Korea
Exhibit 11 – International submarine fibre optic cables overview in South Korea
Exhibit 12 – KOREASAT satellite status
Exhibit 13 – Interconnection status by IX - 2011
Exhibit 14 – Smart grid implementation areas
Exhibit 15 – Phased implementation plan of Jeju Smart Grid: 2010 - 2013
Exhibit 16 – Comparison of WiBro and mobile technologies in South Korea
Exhibit 17 – Regional TV broadcasters in South Korea
Exhibit 18 – E-government stages: 1980s - present

South Korea - Telecoms, Mobile, Broadband and Forecasts

Published By: Paul Budde Communication
 

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