Telecoms Market Overview and Statistics - North Korea

1. Executive summary

2. Key statistics

2.1 Country overview

2.2 Relationship with South Korea and the world

3. North Korea's telecommunications market

3.1 Background of North Korea's telecom market

3.2 Overview of North Korea's telecom market - 2013

4. Regulatory environment

5. Network operators

5.1 Lancelot Holdings

5.2 Loxley Pacific (Loxpac)

5.3 Shin Satellite Corp

5.4 Egypt's Orascom Telecoms Holding

6. Telecommunications infrastructure

6.1 National telecom network

6.1.1 North-South connections

6.2 International infrastructure

6.2.1 Satellite networks

6.3 Kwangmyongsong 3-2 Satellite

7. Internet market

7.1 Background

7.2 Korea Computing Centre (KCC)

7.3 Kwangmyong

7.4 Personal computer production

7.5 Factory visits in China

7.6 Internet Service Providers (ISPs)

7.7 Revival of the .kp domain

7.8 Social networking North Korean style - Uriminzokkiri

7.8.1 Twitter

7.8.2 Facebook

7.8.3 YouTube

7.9 North Korea on Google Maps

8. Broadcasting market

8.1 Overview

8.2 TV stations

8.3 Satellite TV

9. Mobile communications

9.1 Overview of North Korea's mobile market

9.2 Mobile phone costs

9.3 Mobile phone restrictions

9.4 Mobile phone statistics

9.5 Koryolink 3G network

9.6 Mobile phone production

9.6.1 Fines for using unofficial Chinese mobile phones

9.7 North Korea's answer to the tablet

10. Related reports

Table 1 Country statistics North Korea 2013

Table 2 Telephone network statistics 2013

Table 3 Mobile statistics June 2014

Table 4 National telecommunications authority

Table 5 North and South Korea GDP growth rates 1990; 1995; 2000 - 2012

Table 6 Fixed lines in service and teledensity 1990; 2000; 2005; 2010

Table 7 North Korea mobile subscribers 2003; 2008 2014

Table 8 Koryolink quarterly revenue, EBITDA, EBITDA margin, capex 2009 - 2011

Table 9 Koryolink quarterly subscribers, MoU and ARPU 2009 2014

Chart 1 - North Korea mobile subscribers and penetration - 2009 - 2014

Chart 2 Koryolink quarterly revenue, EBITDA, ARPU Q1 2009 Q3 2011

Chart 3 Koryolink subscribers and minutes of use (MoU) Q1 2009 Q3 2011

Exhibit 1 Map of North Korea

Telecoms Market Overview and Statistics - North Korea

3G passes 2 million subscribers but leadership retains tight control over communications

The development of the telecoms sector in the Democratic People's Republic of Korea is seriously impeded by the country's parlous economic state and the regime's general repression of communications. The DPRK is among the most centrally administrated and isolated economies in the world and GDP per capita is below US$2,000.

General infrastructure in North Korea is poor. Poverty and hunger are part of daily life for many citizens. However, the regime and elite members of political parties are awarded many privileges. As a result, fixed-line connections and GSM mobile services that began in 2002, only reached a small percentage of the population, and mainly in the capital city of Pyongyang. Ordinary citizens were not allowed access to the internet, were highly unlikely to own a computer, and did not have a fixed-line connection to the home.

The regime marked 2012 the centenary of KIM Il Sung's birth, a banner year and the country focused on development of the economy. Spurred on by this historical event, the ICT sector is seeing some unprecedented growth. In a surprising development Egypt's Orascom Holdings was awarded a 3G WCDMA licence in 2008 and started commercial operations in 2009. Although restricted to making calls only within North Korea, and still beyond the wage of many citizens, uptake has soared to over two million subscribers in four years.

The ICT sector has also seen, amongst other developments: increased software development through the KCC; procurement of low cost personal computers suitable for work and educational purposes; reported manufacture of mobile phones; international visits by party officials to electronics companies.

Despite these improvements, ordinary citizens are severely restricted in accessing the internet and many still do not own a PC. International sources are blocked and monitored. It is difficult to imagine how the economy can grow when only a privileged minority have access to the internet, and is in stark contrast to the knowledge economy' aspirations of the south.

Key developments:

3G subscribers reach two million; internet access remains limited for the elite; North Korea on Google maps in more detail; South Korea to retain analogue television broadcasts in border region post digital switchover in 2013

Companies covered in this report include:

North Korea Post and Telecommunications Corp (NKPTC); NEAT&T; SUN NET; Loxley Pacific; Lancelot Holdings; Orascom.