Memorandum
To: Shin Bae Kim, CEO SK Telecom
From: Kevin Feng
Date: October 19th, 2005
Re: CEO Recommendation
Executive Summary
SK Telecom is the #1 wireless communication services provider in South Korea. The company serves more than 19.34 million cellular users (52% market share), 17.5 million of which have data-capable phones. SK Telecom developed the world’s first third generation synchronized cellular system (CDMA 2000 1x EV-DO), thus becoming a pioneer in clearing the path into an ext generation network arena that includes the development of the 4th and 5th generation mobile communication technology.
Business Developments
International Joint Venture
In March 2005, SK Telecom and Earthlink formed a joint venture to sell premium wireless voice and data services to a technology-savvy niche market in the United States.
• This venture, called SK-Earthlink, will lease network capacity from Sprint Corp and sell services already offered by Earthlink to devices like Blackberries, Treos, and wireless laptop Internet access cards.
• In time, SK-Earthlink will introduce some of the cell phone services popular in South Korea to a technology-savvy market in the US. This venture allows SK Telecom to capitalize on its considerable expertise in 3G data networks in the US market.
SK Teletech spin-off, Government Regulation
In May 2005, SK Telecom sold its handset manufacturer SK Teletech to Pantech.
• The company was restricted from selling more than 1.2 million handsets per year because it was a unit of SK Telecom, previously deemed a wireless monopoly. Regulators simultaneously fined the company $90 million for offering illegal handset subsidies.
• To further assuage government regulators, SK Telecom announced it would promise to cap its market share at 52% until 2007 to avoid any controversy over its market control.
• This deal sealed the sale of a 60% interest held by SK Telecom and helps SK Teletech avoid further government regulation and maintain its reputation as a socially responsible company.
3.5G Domestic Network Upgrade
In October 2005, SK Telecom picked LGE and Nortel as the technology providers for its rollout of next generation high-speed wireless broadband in South Korea.
• SK will make use of HSDPA (3.5G) technology from Nortel and UMTS core network solutions from LGE.
• Users of the service will see speeds as high as 14.4 Mbps.
• SK said it plans to launch UMTS services in Pusan, Korea's 2nd largest city, and in Gyeongsang-do, Jeolla-do and Jeju Island in Nov. Commercial launch of HSDPA is to follow in early 2006.
Current Strategies
Providing cutting-edge services that excel customer expectations.
Based on rapid network advancement, the information communication sector is facing unparalleled changes that are dismantling the boundaries between the realms of different industries. To meet the challenges of these paradigm shifts, SK Telecom has mapped out a variety of future growth engines that continues to create new values for its customers. SK Telecom’s focus is on the development of the wireless Internet business. SK Telecom has been selling a wide range of advanced multimedia services in South Korea. These include:
• 'NATE', a wired and wireless integrated multi-Internet service
• ‘JUNE’, a premium multimedia service
• 'MONETA', a state-of-the-art financial service.
• ‘MelOn’, the world’s first wired and wireless integrated music portal
• ‘GXG’, a mobile game portal site
• Mobile Cyworld, an online cyber-community service
Proof that such services are highly profitable can be seen on paper. In the second quarter of 2005, SK Telecom’s Wireless Internet revenues increased by 43% which contributed to 26% of SK Telecom’s total revenues in 2Q 05. In September alone, SK Telecom added a net 94,829 subscribers, increasing its total customers to 19.34 million, the largest increase among the nation’s three mobile operators for a second straight month. SK Telecom plans to continue providing innovative and customized services to their customers that are superior to anything they have ever experienced.
Constantly developing new values for existing and potential customers.
SK Telecom is also concentrating on exploring new services like Satellite DMB, a service that provides DVD quality television to mobile devices, in preparation for the increasing convergence in telecommunications, broadcasting, finance, and entertainment.
Recommendation
Secure strong growth in wireless data revenue by providing innovative services beyond traditional devices.
Because the South Korean market is heavily saturated, SK Telecom must maintain its leadership in the core telecommunications business while also sustaining its reputation as a technological innovator by exploring growth opportunities in new business areas. Such new services transcend handheld devices and can utilize SK Telecom’s existing high-speed wireless data network to provide services like GPS/Internet/Email/Multimedia to cars with built-in devices.
Capitalize by leveraging expertise in industry.
Much like the strategy involved with the SK-Earthlink, SK Telecom should continue to seek other Joint Venture opportunities in countries with developed telecommunications infrastructures where they can use their technological expertise from products/services already implemented in South Korea to capture a premium niche market of users.
Expand business developments in Vietnam
SK Telecom launched CDMA cellular service in 2003 in Vietnam. SK Telecom currently has a subscriber base of 260,000 and operates under the brand name S-Fone. With mobile penetration of just 7%, Vietnam offers good growth potential for SK Telecom. Markets in China and India are highly competitive and the opportunity for SK Telecom to capture a substantial customer base will be much easier to accomplish in Vietnam.
To: Shin Bae Kim, CEO SK Telecom
From: Kevin Feng
Date: October 19th, 2005
Re: CEO Recommendation
Executive Summary
SK Telecom is the #1 wireless communication services provider in South Korea. The company serves more than 19.34 million cellular users (52% market share), 17.5 million of which have data-capable phones. SK Telecom developed the world’s first third generation synchronized cellular system (CDMA 2000 1x EV-DO), thus becoming a pioneer in clearing the path into an ext generation network arena that includes the development of the 4th and 5th generation mobile communication technology.
Business Developments
International Joint Venture
In March 2005, SK Telecom and Earthlink formed a joint venture to sell premium wireless voice and data services to a technology-savvy niche market in the United States.
• This venture, called SK-Earthlink, will lease network capacity from Sprint Corp and sell services already offered by Earthlink to devices like Blackberries, Treos, and wireless laptop Internet access cards.
• In time, SK-Earthlink will introduce some of the cell phone services popular in South Korea to a technology-savvy market in the US. This venture allows SK Telecom to capitalize on its considerable expertise in 3G data networks in the US market.
SK Teletech spin-off, Government Regulation
In May 2005, SK Telecom sold its handset manufacturer SK Teletech to Pantech.
• The company was restricted from selling more than 1.2 million handsets per year because it was a unit of SK Telecom, previously deemed a wireless monopoly. Regulators simultaneously fined the company $90 million for offering illegal handset subsidies.
• To further assuage government regulators, SK Telecom announced it would promise to cap its market share at 52% until 2007 to avoid any controversy over its market control.
• This deal sealed the sale of a 60% interest held by SK Telecom and helps SK Teletech avoid further government regulation and maintain its reputation as a socially responsible company.
3.5G Domestic Network Upgrade
In October 2005, SK Telecom picked LGE and Nortel as the technology providers for its rollout of next generation high-speed wireless broadband in South Korea.
• SK will make use of HSDPA (3.5G) technology from Nortel and UMTS core network solutions from LGE.
• Users of the service will see speeds as high as 14.4 Mbps.
• SK said it plans to launch UMTS services in Pusan, Korea's 2nd largest city, and in Gyeongsang-do, Jeolla-do and Jeju Island in Nov. Commercial launch of HSDPA is to follow in early 2006.
Current Strategies
Providing cutting-edge services that excel customer expectations.
Based on rapid network advancement, the information communication sector is facing unparalleled changes that are dismantling the boundaries between the realms of different industries. To meet the challenges of these paradigm shifts, SK Telecom has mapped out a variety of future growth engines that continues to create new values for its customers. SK Telecom’s focus is on the development of the wireless Internet business. SK Telecom has been selling a wide range of advanced multimedia services in South Korea. These include:
• 'NATE', a wired and wireless integrated multi-Internet service
• ‘JUNE’, a premium multimedia service
• 'MONETA', a state-of-the-art financial service.
• ‘MelOn’, the world’s first wired and wireless integrated music portal
• ‘GXG’, a mobile game portal site
• Mobile Cyworld, an online cyber-community service
Proof that such services are highly profitable can be seen on paper. In the second quarter of 2005, SK Telecom’s Wireless Internet revenues increased by 43% which contributed to 26% of SK Telecom’s total revenues in 2Q 05. In September alone, SK Telecom added a net 94,829 subscribers, increasing its total customers to 19.34 million, the largest increase among the nation’s three mobile operators for a second straight month. SK Telecom plans to continue providing innovative and customized services to their customers that are superior to anything they have ever experienced.
Constantly developing new values for existing and potential customers.
SK Telecom is also concentrating on exploring new services like Satellite DMB, a service that provides DVD quality television to mobile devices, in preparation for the increasing convergence in telecommunications, broadcasting, finance, and entertainment.
Recommendation
Secure strong growth in wireless data revenue by providing innovative services beyond traditional devices.
Because the South Korean market is heavily saturated, SK Telecom must maintain its leadership in the core telecommunications business while also sustaining its reputation as a technological innovator by exploring growth opportunities in new business areas. Such new services transcend handheld devices and can utilize SK Telecom’s existing high-speed wireless data network to provide services like GPS/Internet/Email/Multimedia to cars with built-in devices.
Capitalize by leveraging expertise in industry.
Much like the strategy involved with the SK-Earthlink, SK Telecom should continue to seek other Joint Venture opportunities in countries with developed telecommunications infrastructures where they can use their technological expertise from products/services already implemented in South Korea to capture a premium niche market of users.
Expand business developments in Vietnam
SK Telecom launched CDMA cellular service in 2003 in Vietnam. SK Telecom currently has a subscriber base of 260,000 and operates under the brand name S-Fone. With mobile penetration of just 7%, Vietnam offers good growth potential for SK Telecom. Markets in China and India are highly competitive and the opportunity for SK Telecom to capture a substantial customer base will be much easier to accomplish in Vietnam.
posted by Kevin at 4:26 PM
1 Comments:
Hi, Kevin, I was surfing and searching for some info on voice broadcasting and noticed your site. Your this post though sounded interesting so I took a look. It was not relevant to my voice broadcasting search but, I am glad to stop by and view your interesting viewpoints! Keep up the great blogging.http://www.lowcosttraffic.com/mlm-telerecruiter.html
Post a Comment
<< Home