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South Korea - Telecoms, Mobile, Broadband and Forecasts

Published By :

BuddeComm

Published Date : Feb 2014

Category :

Broadband

No. of Pages : 132 Pages

LTE in South Korea touching 50% of mobile subscriber base as demand for data surges
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 now 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 involvement continues with the aim of transforming the country into a knowledge-based information society in a ‘smart-age’.

The South Korean Government had a declared commitment to transition the country to digital terrestrial, digital cable and digital satellite TV broadcasting by 2012. The pressure created by convergence prompted South Korea to rewrite its regulatory arrangements for the broadcasting and communications sector. The operators continue to invest heavily in fibre based broadband deployments. As a result IPTV subscriptions have passed the 7 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 had accounted for the majority of subscriptions. More recently, following the launch of 4G LTE services in 2011, this technology is quickly overwhelming the market and, coming into 2014, it had claimed 50% of the total mobile subscriber base. Not surprisingly, there has also been a rapid increase in smartphone adoption.

South Korea has the world’s highest number of broadband services per capita. Into 2014 over 38% of the population and around 95% of households were broadband subscribers. FttX accounted for over 60% of total subscriptions. Since 2006, Korea’s policy emphasis has been on completing a Broadband convergence Network (BcN) with wireline speeds of 50-100Mb/s per household and 1-2Mb/s on wireless connections. The plan moving forward has been for a UBcN (Ultra Broadband convergence Network) with 1Gb/s speeds on fixed lines and 10Mb/s on wireless by 2013.

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 2014, 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 supported by the introduction of more smartphones into the market and has seen ARPU trend upwards;
  • LTE 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 continuing, with KT taking a lead role;
  • 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 was starting to impact on the mobile market in 2013;
  • Spectrum auctions were held raising over US$1.5 billion for 10 year licence allocations;
  • WiFi 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 grid by 2030;
  • Green Economy initiatives are driving investments in Smart Cities.
Table of Contents

1. Key Statistics
1.1 Country Overview
1.1.1 South Korea’s economy

2. Telecommunications Market
2.1 Government support
2.2 ICT industry as an engine of economic growth
2.3 Communication industry revenue by type
2.4 Global rankings and South Korea
2.4.1 Government Broadband Index - EIU
2.4.2 Global Innovation Index – INSEAD
2.5 Telecommunications market sectors
2.5.1 Fixed-line and mobile services
2.5.2 Broadband in South Korea

3. Regulatory Environment
3.1 KCC – Overview and responsibilities
3.2 KCC – related laws
3.3 National Internet Development Agency of Korea (NIDA)
3.4 Policy overview

4. Major Operators
4.1 Overview of Major Telecom Operators
4.2 KT Corp
4.2.1 Company overview
4.2.2 Company background
4.2.3 KT Corp: Financial statistics
4.2.4 KT Corp: Operations statistics
4.3 SK Broadband
4.3.1 Company overview
4.3.2 Company developments
4.3.3 Company background
4.3.4 SK Broadband: Financial statistics
4.3.5 SK Broadband: Operations statistics
4.4 SK Telecom
4.4.1 Company overview
4.4.2 Company background
4.4.3 SK Telecom: Financial statistics
4.4.4 SK Telecom: Operations statistics
4.4.5 SK Telecom: LTE 2.0 plans
4.4.6 SK Planet
4.5 LG U+
4.5.1 Company overview
4.5.2 LG U+: Financial statistics
4.5.3 LG U+: Operations statistics
4.5.4 LG U+: “Beyond Telecom” initiatives

5. Telecommunications Infrastructure
5.1 National submarine cable infrastructure
5.2 International submarine cable infrastructure
5.3 Satellite infrastructure
5.4 Internet infrastructure
5.4.1 Internet eXchange (IX)
5.4.2 South Korea registered domains
5.4.3 IPv6
5.4.4 South Korea international internet bandwidth
5.5 Smart grids
5.5.1 Smart grid: new laws
5.5.2 Smart grid stages: 2010 - 2030
5.5.3 Five smart grid implementation areas
5.5.4 Jeju Island
5.6 Smart cities
5.6.1 New Songdo City
5.6.2 Busan
5.7 Infrastructure investment strategies
5.7.1 Infrastructure investment overview
5.7.2 Infrastructure investment stages of growth
5.7.3 Green IT in South Korea
5.7.4 Top 10 ICT focus areas: 2010 - 2018
5.7.5 New Technology Development

6. Internet Market
6.1 South Korea internet users
6.2 South Korea internet subscribers
6.3 South Korea ICT usage by household
6.4 Changes in the average internet user by activity– 2000 vs 2010, 2011
6.5 Distribution of internet users by region - 2010
6.6 Internet usage patterns
6.7 Internet usage by the socially disadvantaged
6.8 Internet media consumption

7. Broadband Market
7.1 Background
7.1.1 Broadband success criteria
7.2 Overview
7.3 Broadband statistics
7.4 Operator broadband subscribers
7.5 Broadband subscribers by access type
7.6 Bundled services usage rate by type
7.7 Broadband government targets
7.7.1 Broadband convergence Network
7.7.2 Ultra Broadband convergence Network
7.7.3 Broadband speed results
7.8 Broadband technologies
7.8.1 Overview
7.8.2 Cable modem
7.8.3 Digital Subscriber Line (DSL)
7.8.4 Apartment LAN
7.8.5 Fibre-to-the-Home
7.9 Wireless broadband
7.9.1 Wireless Local Area Network (WLAN)/Wireless Fidelity (WiFi)
7.9.2 WiBro
7.10 Voice over Internet Protocol (VoIP)
7.11 Broadband TV
7.11.1 Triple play background
7.11.2 Internet protocol TV (IPTV)

8. Digital Media / Digital Economy
8.1 Digital Economy
8.1.1 E-commerce
8.1.2 E-government
8.1.3 E-entertainment
8.1.4 E-Learning
8.1.5 E-services
8.2 Broadcasting
8.2.1 National television networks
8.2.2 Digital TV
8.2.3 Satellite TV
8.2.4 Cable TV (CATV)
8.2.5 Broadcasting deregulation
8.2.6 Nationwide Terrestrial 3D Broadcast
8.2.7 TV Music Streaming

9. Mobile Communications
9.1 Overview of South Korea’s mobile market
9.2 Background of South Korea’s mobile market
9.3 Mobile statistics
9.3.1 Mobile subscribers 1985 - 2013
9.3.2 Mobile subscribers by operator
9.3.3 Mobile ARPU by operator
9.4 Fourth mobile operator to enter market?
9.4.1 KMI
9.4.2 Kbiz
9.5 MVNOs
9.6 Spectrum auctions: 1.2GHz, 1.8GHz and 800MHz
9.7 Additional spectrum allocation
9.8 Mobile technologies
9.8.1 Analogue (AMPS)
9.8.2 Personal Communication Service (PCS)
9.8.3 Code Division Multiple Access (CDMA)
9.8.4 Wideband CDMA (WCDMA)
9.8.5 LTE
9.8.6 Voice over LTE (VoLTE)
9.8.7 LTE-Advanced (LTE-A)
9.8.8 Smartphones
9.9 Mobile data services
9.9.1 Market overview
9.9.2 Wireless Internet NIDA survey 2010
9.10 Mobile content and applications
9.10.1 Overview
9.10.2 M-commerce/m-payment
9.10.3 Mobile banking (m-banking)
9.10.4 Mobile government (m-government)
9.10.5 Apps Stores
9.10.6 Mobile advertising
9.10.7 NFC chips in smartphones
9.10.8 Mobile TV
9.10.9 Mobile learning
9.10.10 OTT Voice

10. Forecasts
10.1 Forecast Fixed-line subscribers – 2012 - 2013; 2017
10.2 Forecast Broadband subscribers – 2011 - 2012; 2017
10.3 Forecast Internet users – 2011 - 2012; 2016
10.4 Forecast: Mobile subscribers 2012- 2013; 2017

List of Table

Table 1 – Country statistics South Korea – 2013
Table 2 – Telecom revenue and investment statistics – 2011
Table 3 – Telephone network statistics – March 2013
Table 4 – Internet user statistics – 2012
Table 5 – Broadband statistics – July 2013
Table 6 – Mobile statistics – September 2013
Table 7 – National telecommunications authorities
Table 8 – South Korea GDP real growth rate – 2008 - 2014
Table 9 – South Korea GDP and GDP per capita – 2000 - 2017
Table 10 – Growth of ICT industry – 2003 - 2010
Table 11 – Average growth rate per GDP and medium over 10 years from 2001 to 2010
Table 12 – Telecommunications fixed-line, mobile, total revenue and investment – 2000 - 2012
Table 13 – Wireline communication service revenue by sector – 2008 - 2013
Table 14 – Wireless communication service revenue by sector – 2008 - 2012
Table 15 – Fixed and mobile lines in service and teledensity – 1991 – 2013
Table 16 – KT Corp’s fixed-line subscribers and market share – 2004 - 2013
Table 17 – Telephony (PSTN + VoIP) subscribers, market share by operator – August 2013
Table 18 –Telephone lines by operator (PSTN) – 2005 - 2013
Table 19 –Telephone lines by operator (VoIP) – 2006 - 2013
Table 20 – Broadband internet subscribers by operator – 2005 - 2013
Table 21 – Broadband internet market share by operator – 2005 – 2013
Table 22 – Mobile operator market share – 2002 - 2013
Table 23 – KT Corp revenue, net profit, capex – 2008 – 2013
Table 24 – KT Corp capex – 2010
Table 25 – KT Corp’s fixed-line (PSTN) subscribers and market share – 2003 - 2013
Table 26 – KT Corp’s VoIP and total subscribers – 2008 - 2013
Table 27 – KT Corp’s broadband internet subscribers and market share – 2003 - 2013
Table 28 – KT Corp’s IPTV subscribers, ARPU and market share – 2006 - 2013
Table 29 – KT Corp’s WiBro subscribers – 2007 - 2013
Table 30 – KT Corp’s mobile and 3G subscribers and total market share – 2004 – 2013
Table 31 – KT’s Voice and data ARPU – 2004 – 2011
Table 32 – KT’s smartphone subscribers and penetration – 2009 – 2013
Table 33 – SK Broadband revenue, net income, capex, EBITDA – 2003 - 2013
Table 34 – SK Broadband operating revenue split – 2008 - 2011
Table 35 – SK Broadband capex – 2006 - 2011
Table 36 – SK Broadband - broadband internet subscribers – 2005 - 2012
Table 37 – SK Broadband - broadband internet subscribers – 2012 - 2013
Table 38 – SK Broadband ‘B tv’ TV subscribers – 2006-2013
Table 39 – SK Telecom revenue, net profit, capex, EBITDA margin – 2005 - 2013
Table 40 – SK Telecom mobile and 3G subscribers, ARPU – 2002 - 2013
Table 41 – SK Telecom smartphone subscribers and penetration – 2009 - 2013
Table 42 –LG U+ revenue, net income, EBITDA – 2009 – 2012
Table 43 –LG U+ revenue breakdown by service – 2009 – 2012
Table 44 – LG U+ capex – 2009 – 2013
Table 45 – LG U+ - total mobile ARPU – 2009 - 2013
Table 46 – LG Telecom mobile subscribers, ARPU – 2003 - 2013
Table 47 – LG Telecom fixed-line (PSTN and VoIP) subscribers – 2005 - 2013
Table 48 – LG U+ broadband subscribers – 2004 – 2013
Table 49 – LG U+ IPTV subscribers – 2007 – 2013
Table 50 – Registered .kr domains – 1993 - 2013
Table 51 – Number of IPv4 and IPv6 addresses – 1997 - 2013
Table 52 – International bandwidth – 1997 - 2013
Table 53 – Smart grid investment to 2015
Table 54 – Internet users and population penetration rates – 1994 - 2014
Table 55 – Internet users and population penetration rates – 2003 - 2012
Table 56 – Internet subscribers – 1996 - 2014
Table 57 – Personal computers and penetration by population and household – 2000 - 2013
Table 58 – Households with ICT service access by type: – 2011 - 2012
Table 59 – Changes in the average internet user by activity– 2000 versus 2010, 2011
Table 60 – Population and internet users by region - 2010
Table 61 – Internet usage rates by service– 2009 - 2012
Table 62 – Main purpose of using the internet – 2010 - 2012
Table 63 – Households with ICT devices – 2012
Table 64 – Internet usage rate of the socially disadvantaged – 2003 - 2009
Table 65 – Computer penetration rate in the socially disadvantaged households – 2003 - 2009
Table 66 – Online versus offline media consumption – 2012
Table 67 – Fixed broadband internet subscriber growth and penetration rate – 1998 - 2014
Table 68 – Broadband subscribers and households – July 2013
Table 69 – Broadband market share by operator – July 2013
Table 70 – Broadband internet subscriber numbers by system – 1998 - 2013
Table 71 – Bundled service usage pattern: households using bundled services– 2011
Table 72 – BcN implementation in households/subscribers – 2005; 2006 - 2011
Table 73 – UBcN implementation goals in households/subscribers – 2009 - 2013
Table 74 – Broadband subscribers by access type – July 2013
Table 75 – Cable modem subscribers – 1999 – 2013
Table 76 – Broadband cable modem (HFC) subscribers by service provider – July 2013
Table 77 – DSL subscribers – 1999 – 2013
Table 78 – DSL subscribers by service provider – July 2013
Table 79 – A-LAN subscribers – 2002 - 2013
Table 80 – A-LAN subscribers by service provider – July 2013
Table 81 – FttH subscribers – 2006 - 2013
Table 82 – FttH subscribers by service provider – July 2013
Table 83 – KT and SK Telecom WiBro subscribers – 2006 - 2013
Table 84 – KT and SK Telecom WiBro domestic investment plans – 2006 - 2011
Table 85 – South Korea VoIP subscribers by major operator and market share – August 2013
Table 86 – South Korea VoIP subscribers – 2006 - 2011
Table 87 – IPTV subscribers by operator – 2006 - 2013
Table 88 – IPTV growth by channels, content providers, after-school classrooms – 2008 - 2010
Table 89 – IPTV real-time and pre-IPTV subscribers – 2008 - 2012
Table 90 – E-commerce volume – 2001 - 2011
Table 91 – E-commerce volume by transaction type – 2001 - 2011
Table 92 – Internet banking service subscribers – 2001 - 2013
Table 93 – Financial service by delivery channel – 2005 – 2013
Table 94 – E-tax usage rates – 2002 - 2007
Table 95 – Online game market volume – 2002 - 2009
Table 96 – Digital music market volume – 2003 - 2009
Table 97 – Usage rates by types of social networking service – 2012
Table 98 – Online stock trading customers – 2004 - 2007
Table 99 – Purchase items by internet shopping – 2012
Table 100 – E-learning user market volume – 2004 - 2008
Table 101 – Internet search engine market share – May 2011
Table 102 – DTH subscribers – 2002 – 2013
Table 103 –Cable TV operators and subscribers – Q2 2010
Table 104 – Analogue and digital cable TV subscribers – 2002 – 2010, 2012
Table 105 – Comparison of cost per cable TV subscriber – 2009
Table 106 – Mobile subscribers – 1985 - 2013
Table 107 – Mobile subscribers and annual change by operator and technology – June 2013
Table 108 – Mobile operator market share – 2002 - 2013
Table 109 – Mobile subscribers by operator – 2002 – 2013
Table 110 – Blended mobile ARPU by operator – 2Q 2013
Table 111 – Mobile Service ARPU per month by operator – 1Q 2011 – 2Q 2013
Table 112 – MVNO subscribers by operator – January 2012, September 2012
Table 113 – CDMA mobile subscribers by operator – 2002 - 2013
Table 114 – WCDMA subscribers by operator – June 2013
Table 115 – LTE mobile subscribers by operator – 2011 – 2013
Table 116 – Smart phone subscribers and market share – 2009 - 2012
Table 117 – Forecast smart phone and tablet PC subscribers and market share – 2010 – 2015
Table 118 – Purpose of using mobile phone wireless internet – 2009 - 2010
Table 119 – Wireless internet device usage - 2010
Table 120 – Mobile banking service subscribers – 2003 – 2010
Table 121 – Forecast fixed-line subscribers and penetration - higher band: 2012 - 2013; 2017
Table 122 – Forecast fixed-line subscribers and penetration - lower band: 2012 - 2013; 2017
Table 123 – Forecast broadband subscribers and penetration – higher band: 2012 - 2013; 2017
Table 124 – Forecast broadband subscribers and penetration – lower band: 2012 - 2013; 2017
Table 125 – Forecast internet users and penetration - higher band: 2012 - 2013; 2017
Table 126 – Forecast internet users and penetration - lower band: 2012 - 2013; 2017
Table 127 – Forecast mobile subscribers and penetration lower band forecast – 2011 - 2012; 2017
Table 128 – Forecast mobile subscribers and penetration higher band forecast – 2011 - 2012; 2017

List of Chart

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 – 2002 - 2013
Chart 13 – South Korea DSL and A-LAN subscribers – 2002 - 2013
Chart 14 - VoIP subscribers by major operator and market share - August 2013
Chart 15 – South Korea mobile subscriber growth, population penetration – 2000 - 2013
Chart 16 – Operator total market share – June 2013
Chart 17 – South Korea mobile subscribers by operator – 2002 - 2013
Chart 18: Trends in wireless internet usage rate – 2002 - 2010
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 – National submarine fibre optic cables overview in South Korea
Exhibit 8 – International submarine fibre optic cables overview in South Korea
Exhibit 9 – KOREASAT satellite status
Exhibit 10 – Interconnection status by IX - 2011
Exhibit 11 – Smart grid implementation areas
Exhibit 12 – Phased implementation plan of Jeju Smart Grid: 2010 - 2013
Exhibit 13 – Informatisation policies and paradigms – 1998 - 2012
Exhibit 14 – Informatisation Promotion: Execution body
Exhibit 15 – Green IT promotion strategies of domestic companies
Exhibit 16 – Comparison of WiBro and mobile technologies in South Korea
Exhibit 17 – E-government stages: 1980s - present
Exhibit 18 – South Korea rankings in UN global e-government survey: 2005, 2008, 2010, 2012
Exhibit 19 – Regional TV broadcasters in South Korea

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