Phone-based Games Offer New Revenue Streams to Korean Telecom Firms

One aspect of the Korean telecommunications industry is seeking out ways to get additional fees for add-on services from existing customer bases.

According to the Korea Herald, the latest attempt to find new revenue streams, mobile-phone operators are racing to deliver video games to handsets, allowing users to play games with realistic three-dimensional graphics that rival those on computers and consoles.

SK Telecom Co., the country's largest mobile carrier, and rival KT Freetel Co. launched phone-based game services in April, allowing customers to download and play 3-D games on their handsets.

SK Telecom, offering 15 games, is off to a fast start after attracting more than 600,000 subscribers to its video game services, according to industry figures released yesterday. KTF, offering 11 games, has about 15,000 customers. Both companies plan to expand their content pool to 100 games by the end of the year. LG Telecom Ltd., the smallest carrier, plans to release a 3-D game service in September.

"We are expecting our video-game customers to significantly increase by the later half of the year, with electronics makers rolling out more handsets with 3-D capable graphic chips," said an SK Telecom spokesman.

SK Telecom currently offers two 3-D game handsets, developed by Samsung Electronics Co. and SK Teletech Co. KTF bases their services on a Samsung Electronics handset. Other handset makers such as LG Electronics Inc. plan to release 3-D handsets later in the year.

With Korea's wireless penetration reaching 75 percent, mobile operators have been struggling to keep growth alive in a market approaching saturation. Creating added-value services through digital content has been a main point of competition.

SK Telecom plans to invest $10 million to develop game content this year

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