SK Telecom Co., Ltd - Company Strategy Report
SK Telecom Co., Ltd (SK Telekom) is a leading wireless telecommunications provider in South Korea, where most of its revenues are generated from mobiles services. It also provides fixed-line and e-commerce services, among others. SK plans to maintain its leadership position in wireless services by providing differentiated value-added products, developing next generation businesses and expanding its e-commerce business on a global scale.
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SK Telekom holds a dominant position in the South Korean telecommunications market
In FY2016, the company reported 29.6 million subscribers, representing a market share of 48.0%. Its wireless voice and data transmission services are offered through its infrastructure networks and is accessible by over 99.0% of the Korean population. The company is also leading in terms of revenues. It reported services revenues of US$8,922.0 million in 2016 as compared to KT’s US$6,697.2 million.
Increasing initiatives in IPTV are expected to drive its revenue stream
The industry will benefit from an increase in IPTV demand in South Korea, which displayed a significant subscription growth at 30.6% CAGR for 2012-16 from US$ 700.0 million in 2012 to US$2,000.0 million in 2016. This value is expected to increase further at 8.5% CAGR during 2016-21 to reach US$3,100.0 million. SK Broadband’s IPTV market has enhanced its competitiveness. The company is expanding its base for business as a media platform company by using stronger content and mobile competitiveness.
SK Telekom’s “T phone” is boosting subscriptions
SK Telekom has launched “T phone”, which provides its customers with several convenient call functions, including a function to block spam calls. It also features a function called “T114” that informs customers of the phone numbers of stores, hospitals and other facilities closest in proximity to the customer’s current location. The number of subscribers to the T phone service accounted for 34% of the company’s total subscriptions in 2016 as compared to 27.0% in 2015.