South Korea - Major Telecom Operators - Overview and Statistics

Synopsis

The 2010/2011 period has seen significant developments in the South Korean telecommunications market after some restructuring amongst the major operators in late 2009. Although the fixed-line telephone market in South Korea continues to be dominated by the incumbent KT, VoIP services are becoming increasingly popular as operators bundle services in a bid to stop the decline in ARPU. The operators continue to invest heavily in fibre based broadband deployments and IPTV subscriptions have passed the 4 million mark as more content is available and the operators are able to compete more effectively with live broadcasts. New investments are intended to drive revenue and gain market share and the year has seen the launch of LTE and the rapid increase in smartphone adoption. This report examines the major operators in South Korea in terms of financial and operational results and future strategies.

Key Developments:

Operator spend of 15% on capex as each drives strategy to gain market share and drive up revenue; deployments of LTE while WiBro passes the half million subscriber mark; increased investment in smart technologies such as Smart Grids and Cloud Computing, Smart workplaces and the Converged home; larger investment in Wi-Fi and femtocell deployments to alleviate pressure on core mobile infrastructure.

Companies covered in this report include:

KT; LG U+; SK Broadband; SK Telecom

Table of Contents

• 1. Synopsis
• 2. Overview of Major Telecom Operators
• 3. KT Corp
  • 3.1 Company overview
  • 3.2 Company background
    • 3.2.1 Fixed-line business: 1981 - 2009
    • 3.2.2 Mobile business: 2001 - 2009
    • 3.2.3 Converged services business: 2009 onwards
  • 3.3 KT Corp: Financial statistics
    • 3.3.1 KT Corp: Capex
    • 3.3.2 Financial highlights – Annual Report 2009
    • 3.3.3 Financial highlights – Annual Report 2010
    • 3.3.4 Financial highlights – Q1 2011
  • 3.4 KT Corp: Operations statistics
    • 3.4.1 KT Corp: Home phone statistics
    • 3.4.2 KT Corp: Internet statistics
    • 3.4.3 KT Corp: Broadband TV statistics
    • 3.4.4 KT Corp: WiBro statistics
    • 3.4.5 KT Corp: Mobile statistics
  • 3.5 KT Corp’s strategy
    • 3.5.1 KT Corp’s strategy: Mobile business
    • 3.5.2 KT Corp’s strategy: Fixed-line business
    • 3.5.3 KT Corp’s strategy: Corporate business
  • 3.6 Recent developments
• 4. SK Broadband
  • 4.1 Company overview
  • 4.2 Company background
    • 4.2.1 Korea Thrunet
  • 4.3 SK Broadband: Financial statistics
    • 4.3.1 Financial highlights – Annual Report 2010
    • 4.3.2 SK Broadband: Capex
  • 4.4 SK Broadband: Operations statistics
• 5. SK Telecom
  • 5.1 Company overview
  • 5.2 Company background
    • 5.2.1 Merger with Shinsegi Telecom
  • 5.3 SK Telecom: Financial statistics
    • 5.3.1 Financial highlights – Annual Report 2009
    • 5.3.2 Financial highlights – Annual Report 2010
    • 5.3.3 Financial highlights – Q1 2011
  • 5.4 SK Telecom: Operations statistics
  • 5.5 SK Telecom: Business operations strategies
    • 5.5.1 Wireless and fixed-line businesses
    • 5.5.2 Convergence businesses
  • 5.6 Recent developments
  • 5.7 LTE
• 6. LG U+
  • 6.1 Company overview
  • 6.2 LG U+: Financial statistics
    • 6.2.1 Financial and operating highlights – 2009 - 2011
    • 6.2.2 LG U+: Capex
  • 6.3 LG U+: Operations statistics
    • 6.3.1 LG U+: Mobile statistics
    • 6.3.2 LG U+: Fixed-line statistics
    • 6.3.3 LG U+: Broadband statistics
    • 6.3.4 LG U+: IPTV statistics
  • 6.4 LG U+: “Beyond Telecom” initiatives - 2011
  • 6.5 Recent developments
  • 6.6 Company background
    • 6.6.1 LG Telecom
    • 6.6.2 LG Dacom
    • 6.6.3 LG Powercom
    • 6.6.4 LG Telecom, Dacom and Powercom: Financial statistics to 2009
• 7. Related reports

• Table 1 – KT Corp revenue, net profit, capex – 2008 – 2010; 2011 (e)
• Table 2 – KTF revenue, net profit, capex, EBITDA – 2004 - 2008
• Table 3 – KT Corp capex – 2010
• Table 4 – KT Corp’s fixed-line (PSTN) subscribers and market share – 2003 - 2011
• Table 5 – KT Corp’s VoIP and total subscribers – 2008 - 2011
• Table 6 – KT Corp’s broadband internet subscribers and market share – 2003 - 2011
• Table 7 – KT Corp’s IPTV subscribers – 2006 - 2011
• Table 8 – KT Corp’s WiBro subscribers – 2007 - 2011
• Table 9 – KT Corp’s mobile and 3G subscribers and total market share – 2004 - 2011
• Table 10 – KT Corp’s mobile voice and data outgoing MOU – 2004 - 2009
• Table 11 – KT’s Voice and data ARPU – 2004 - 2011
• Table 12 – KT’s smartphone subscriber trend – Q4 2009 – Q4 2010
• Table 13 – KT Corp’s 3W strategy – 2009 - 2010
• Table 14 – SK Broadband revenue, net income, capex, EBITDA – 2003 - 2010
• Table 15 – SK Broadband operating revenue split – 2008 - 2011
• Table 16 – SK Broadband capex – 2006 - 2010
• Table 17 – SK Broadband - broadband internet subscribers – 2005 - 2011
• Table 18 – SK Broadband ‘B tv’ TV subscribers – 2006-2011
• Table 19 – SK Telecom revenue, net profit, capex, EBITDA margin – 2005 - 2011
• Table 20 – SK Telecom mobile and 3G subscribers, minutes of use and ARPU – 2002 - 2010
• Table 21 –LG U+ revenue, net income, EBITDA – 2009 – 2011
• Table 22 –LG U+ revenue breakdown by service – 2009 – 2011
• Table 23 – LG U+ capex – 2009 – 2011
• Table 24 – LG Telecom mobile subscribers, minutes of use and ARPU – 2003 - 2011
• Table 25 – LG Telecom fixed-line (PSTN and VoIP) subscribers – 2005 - 2011
• Table 26 – LG U+ broadband subscribers – 2004 - 2011
• Table 27 – LG U+ IPTV subscribers – 2007 - 2011
• Table 28 – LG Telecom revenue, net profit, capex, EBITDA – 2005 - 2008
• Table 29 – LG Telecom, LG Dacom and LG Powercom financial data – 2008
• Table 30 – LG Telecom, LG Dacom and LG Powercom financial data – 2009

• Chart 1 – KT mobile subscribers by network, voice and data ARPU – 2004 - 2010
• Chart 2 – SK Telecom revenue, capex, ARPU – 2005 - 2010
• Chart 3 – LG U+ revenue, capex, ARPU – 2009 - 2010

• Exhibit 1 – Significant telecoms operators in South Korea
• Exhibit 2 – KT at a glance – December 2010
• Exhibit 3 – SK Broadband at a glance – December 2010
• Exhibit 4 – SK Telecom at a glance – December 2010
• Exhibit 5 – LG U+ at a glance – December 2010