South Korea Telecommunications Report

Published 17 June 2015

  • 95 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
South Korea Telecommunications Report

BMI View: New initiatives for MVNO's could add some growth and increase competition, although the mobile growth is expected to slow over the forecast period. Although the regulator has objected to handset subsidies and fined operators for offering them, the access to new handsets has been driving the fast upgrade from 3G services to 4G. Additionally, a spectrum auction in H215 could pave way for 5G technology. South Korea is one of Asia's outperformers, with consumers happy to spend on mobile services and often keen to upgrade to the latest services. This is also reflected in the wireline market where high-speed broadband continues to show good growth.

Key Data

  • The migration from 3G to 4G continues to grow apace. The mobile market has continued to expand, even with penetration at around 117% in 2014.

  • The fixed-line market is still expanding, mostly due to the growth of VoIP, but it is slowing noticeably. Growth in the broadband market has slowed due to a combination of high penetration rates for wireline services and competition from LTE services.

Key Developments

The Ministry of Science, ICT and Future Planning is reviewing the country's mobile communications market with a view to increasing competition and consumer choice. Initiatives being considered include the lowering of wholesale network and spectrum access charges payable by MVNOs to their host network partners, as well as deferring MVNOs' spectrum usage payments by another year, until September 2016. The government is also keen to license a fourth mobile network operator, but BMI believes a new investor would struggle to differentiate itself. MVNO subscriptions have grown rapidly and passed the 5mn mark in mid-April 2015. Lower wholesale rates and greater regulatory latitude in approving new service plans will further drive demand for low-cost MVNO services and provide sufficient competitive impetus.

The Korea Communications Commission (KCC) plans to auction 700MHz spectrum in H215 to...

Table of Contents

BMI Industry View
7
SWOT
8
Mobile SWOT
8
Wireline SWOT
10
Political
11
Economic
12
Operational Risk
13
Industry Forecast
16
Mobile
16
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (South Korea 2012-2019)
16
ARPU
17
Wireline
20
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (South Korea 2012-2019)
20
Broadband
20
Industry Risk Reward Ratings
22
Industry Risk Reward Index
22
Table: Asia-Pacific Telecoms Risk/Reward Index, Q215
26
Market Overview
28
Asia Mobile Content
28
Mobile
31
Regional Perspective
31
Key Developments
31
Table: South Korea Mobile Market Regional Comparisons
32
Mobile Growth
32
Market Share
33
Table: South Korea Mobile Market, 2014
34
Usage
34
MVNOs
35
Networks
37
Mobile Content
41
Mobile Operator Data
44
Table: Mobile Market Overview
44
Table: SK Telecom
44
Table: KT
45
Table: LG U+
47
Wireline
49
Table: Fixed-Line Subscriptions By Operator And Technology ('000), 2011-2014
50
Broadband
50
Table: Broadband Subscriptions 2011-2014
51
Table: Broadband Subscribers By Technology And Operator ('000), Sept 2014
52
IPTV
52
Industry Trends And Developments
55
Table: Latest Developments
59
Regulatory Development
61
Regulatory Environment
61
Table: Division Of Regulatory Responsibility In South Korea
62
Latest Developments
65
Table: Regulatory Developments
66
Competitive Landscape
68
Table: Key Players - South Korea Telecoms Sector
68
Table: Operators' Financial Indicators, 2006-2013 (USDmn)
68
Company Profile
69
KT Corporation
69
LG Uplus
75
Regional Overview
79
Table: Ericsson Key Asia Contracts/Trials Announced, 2015
82
Demographic Forecast
84
Table: Population Headline Indicators (South Korea 1990-2025)
85
Table: Key Population Ratios (South Korea 1990-2025)
85
Table: Urban/Rural Population & Life Expectancy (South Korea 1990-2025)
86
Table: Population By Age Group (South Korea 1990-2025)
86
Table: Population By Age Group % (South Korea 1990-2025)
87
Glossary
89
Table: Glossary Of Terms
89
Methodology
91
Industry Forecast Methodology
91
Sources
93
Risk/Reward Index Methodology
93
Table: Risk/Reward Index Indicators
94
Table: Weighting Of Indicators
95

The South Korea Telecommunications Report features BMI Research's independent industry forecasts on the future strength of South Korea's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's South Korea Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in South Korea.

Key Benefits

  • Benchmark BMI's independent telecoms industry forecasts for South Korea to test other views - a key input for successful budgeting and strategic business planning in the Korean telecoms market.
  • Target business opportunities and risks in South Korea's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in South Korea.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the ARPU, fixed-line, mobile (including 3G & 4G), internet and broadband markets.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.

BMI Industry Forecast Scenario

Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

  • Fixed-line Telephony – Telephone lines (‘000); telephone lines/100 inhabitants.
  • Cellular Telephony – Mobile phone subscribers (‘000); mobile phone subscribers/100 inhabitants; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
  • Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.

BMI’s Telecommunications Risk Reward Index

BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.

Market Data Analysis

Detailed market analysis of the mobile, mobile content, fixed-line and internet segments, broken down into:

  • Market Data – Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
  • Technology/Service Rollout – Analysis of rollout/adoption of new technology, such as 3G & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded handset services (gaming, music, video, apps etc.).
  • Mobile Content – The latest trends in content and services available and being introduced by mobile operators, including a timeline of all the latest major mobile content developments.
    Company Database – A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G & 4G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).

Regulatory Environment

Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. Also covers the latest updates in the market’s development and regulatory rulings.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc