Major (Korean) telecom carriers to turn focus to profitability, convergence services
Korea's major telecom operators said they would pay keen attention to the convergence of mobile and landline services in 2003, while boosting profitability amidst mounting concerns over the outlook for the high-tech industry.
The global telecom industry is yet to recover from a protracted slump, and Korean operators are deemed fortunate to have had a dynamic market last year, helped by the growing demand for mobile, fixed-line and broadband services.
The year 2003, however, may not be as favorable. External factors including the possibility of a breakout of hostilities between the United States and Iraq, and the standoff between the U.S. and North Korea over the North's nuclear program, along with other economic uncertainties globally, are seen as limiting the growth potential of Korean telecom operators.
Despite the gloomy outlook, Korea's major telecom service providers said they would unveil new business strategies and introduce fresh services, by combining fixed-line and mobile infrastructures.
The overall market structure is also changing as KT Corp. is set to establish its dominance in the telecommunications sector through the merger of its two mobile units by the end of March this year. SK Telecom is also expected to merge with its W-CDMA 3G service unit - SK IMT - soon. Other telecom carriers are also making moves to boost their market share.
Fixed-line telecom giant KT said that it will focus on four objectives in 2003: 1) Transformation into a true private enterprise through innovation; 2) Maximization of business competitiveness; 3) Cooperation with subsidiaries for greater synergistic effects; and 5) Greater transparency in management.
KT CEO Lee Yong-kyong said his company will strengthen its wireless LAN (local area network) service, called "Nespot," in a bid to utilize its infrastructure power in the landline and wireless networks. Lee said that his company will secure more 2.3GHz spectrum bandwidth to achieve that goal.
SK Telecom, the country's largest mobile carrier, said that it will nurture growth-oriented business items. The move comes at a time when financial, broadcasting and telecom services are merging with one another.
SK Telecom's three key objectives in 2003 are to: 1) Upgrade its telecom service; 2) Boost profitability; and 3) Innovate its management structure.
"The company will kick start EV-DO service brand, June, and implement W-CDMA investment in an efficient manner in order to strengthen 3G mobile services," SK Telecom vice chairman Cho Jung-nam said.
"Expanding our presence in overseas markets through the sales of mobile platforms and promoting data-oriented services are also top on the agenda in 2003," Cho said.
Dacom Corp., a fixed-line operator affiliated with LG Group, said it will boost its market standing this year before joining the top ranks in 2006.
"The company aims to create greater synergistic effect from the take-over of Powercomm, and offer quality telecom services to subscribers," Dacom chairman Park Un-suh said.
Dacom recently outbid its rival Hanaro Telecom Inc. in the delay- prone bidding for Powercomm, a cable network unit of state-run utility giant Korea Electric Power Corp. (KEPCO).
Hanaro Telecom, meanwhile, said that it will strive to turn a profit this year, while boosting subscriptions to its high-speed Internet service. Hanaro took over Korea Thrunet Co. last week, increasing its market share to 42.5 percent. It is competing with the No. 1 player KT which controls 46.7 percent of the country's broadband market.
(insight@koreaherald.co.kr)
By Yang Sung-jin Staff reporter
2003.01.06
koreaherald.co.kr |
