KT Freetel forecasts 3.5 million subscribers to PersNet by yearend
In Korea, subscribers to mobile phone services have already topped 20 million, and Internet users reportedly surpassed 10 million as the end of last year. Korea Telecom (KT) Freetel sees the combination of the two information technologies as a yet another bonanza.
The company, which launched its Internet portal site www.n016.com last September, forecasts it will attract 3.5 million subscribers to the service from the current 400,000. "The growth of subscriptions to the service, in tune with the development of the service, is a pre-step to preoccupy the uncharted territory of the third generation communication IMT-2000, which is geared toward data communication, in 'the era of wireless network' in the 21st century," a company official said.
Entitled PersNet, or personal network, the Internet portal site is designed for access via personal communication service (PCS), Internet phones and mobile phones, as well as for fixed lines. The service allows subscribers to send and receive e-mail, conduct electronic commerce, make reservations for movies and airlines and get stock quotes as well as surf the Web.
The prime advantage of the portal is that people send and receive e-mail while on the move. In particular, subscribers to the service can access an e-mail received in voice format and send an e-mail by voice, using the new portal accessible both wirelessly and by fixed line, rather than relying on the tiny screen of a handset to read the message.
The site features map information, lifelong e-mail, Web diary for personal schedule management, address list, Web card and archives, as well as "Cyber Business" connections which include shopping, reservation for tickets and auction and others.
Next month, the company will add several premium-grade services to the portal. They include a representative mail address service that lets a user access e-mail messages received through multiple e-mail addresses via his PersNet; fax mail services by which he can print out an e-mail to a fax; and online Mud Game service.
"With this service, people can not only access the Internet portal site via both wireless and fixed line networks, but also customize Internet service any way they like," a company spokesman said. For instance, cell phones may alert a person to his or her appointments, playing the role of a personal secretary, he said.
In August, KT Freetel launched a new brand n016 to replace PCS016. With the new brand name the company said it would embrace the corporate vision of becoming an "integrated telecommunications company providing PersNet service." Last week, KT Freetel put forward an ambitious business plan for this year. The company said it aims to top 2 trillion won in company revenue excluding revenues from the sale of mobile handsets and 200 billion won in net profits in 2000. To that end, it targets to raise subscribers to its mobile service to 5.35 million from the current 4.56 million, or an increase in net subscribers by 1.1 million, becoming the fastest growing mobile service provider in the world.
At the same time, it seeks to dominate next-generation wireless Internet service by enhancing PersNet service. It also plans to diversify its business by expanding overseas operation and offering venture capital to small frims, which it believes would lay the foundation for a long-term business growth.
Last year, the number of subscribers to its PCS increased significantly due to the improvement in re-sale of Korea Telecom's telecommunications services, combined with enhanced corporate image as a leading network service provider. The number of subscribers to its mobile service 016 in 1999 increased to 4.31 million, with some 1.96 million of new subscribers from a year earlier.
By maintaining the upward trend in subscriptions, it aims to secure 1.1 million new subscribers, and attain 2 trillion in revenue, up by 30 percent, from 1.46 trillion recorded last year, thereby achieving 200 billion won in net profit this year.
To that end, the company earmarked 780 billion won for facilities investment, which it said will help its mobile service to gain the top position in communication quality not just in major cities but in most towns and cities as well as on highways across the nation. The personal communications service (PCS) provider said that it would expand the coverage of its IS-95B, which provide data transmission at the speed of 64 K bps, to all over the nation.
A preliminary estimation of fiscal 1999 showed that the company reduced its annual loss to 95 billion won due to 50 billion won in profit per month attained since last October. The improvement in the balance sheet helped the company reduce its debt-to-equity to 150 percent, a figure far below 230 percent forecasted earlier. Encouraged by such positive move in its financial status, the company is to further improve the managerial achievement, thereby stabilizing its overall financial status.
The company successfully completed strategic tie-ups with world-renowned information technologies firms including the world's largest software maker Microsoft, the digital leader Qualcomm and CDPQ. The company said the total value of the tie-ups amounted to $600 million, or 50,000 won per share, composing the best terms of transactions in the wireless communication industry last year. This year, the company is to strengthen its strategic tie-ups with Microsoft as well as with other world-renowned information technology companies.
KT Freetel listed on KOSDAQ at 51,500 won per share last year. The stocks were transacted at daily limits for three consecutive weeks, and grabbed the top position in terms of the total market value as of December 16.
The company regards this year as yet another turning point. "The corporate buzzword of telecommunications industry will be IMT-2000, a third generation mobile communication featuring visual and data transmissions," a company official said.
The Korean government will select the new telecommunication service operators by the end of this year. To take the lead position in the competition to get the license for the service, the company launched a division for IMT-2000 service last July.
The division integrates all work relevant to IMT-2000 service into one umbrella, and has been making preparation for the service ranging from acquisition of core technologies, strategic tie-ups with domestic and overseas businesses, analysis on the trend of government policy, and to mapping out strategy.
KT Freetel said one of its strengths in the new telecommunication service is the advanced technology in wireless telecommunication it accumulated while setting up the nationwide network for its mobile service 016. The other, it said, is the synergy effect stemming from close cooperation with Korea Telecom, as an affiliate of the nation's largest telecommunication company.
This month, Korea Telecom launched a business division for IMT-2000 business, and KT Freetel dispatched personnel to develop products and services, as well as technologies. KT Freetel is planning to further strengthen cooperation in IMT-2000 service with the parent company Korea Telecom, as they together prepare for the government's selection of companies to be licensed for the business.
At the same time, KT Freetel is to stimulate the data or contents market of the nation, which are said to be essential for IMT-2000 service. It seeks to further expand contents of its wireless Internet services PersNet and HandyNet, and increase the communication speed of its wireless Internet service.
To that end, the company plans to link the contents available from Microsoft and acquire extensive global information, and raise the awareness on its service, while laying the foundation for its international electronic business.
As well, it plans to introduce the trial service of high data rate (HDR), a technology for 2.4 M bps of high speed data transmission developed by Qualcomm to provide an enhanced service to n-generation (network-generation), who are accustomed to using high speed data communication. The company said such improvement in its wireless Internet service would trigger fast development of wireless data market prior to the full-fledged commercialization of IMT-2000.
Updated: 01/25/2000
by Byun Tae-kyung Staff reporter |
