Korea's SK Telecom Commands 51.2 % Market Share
SK Telecom president Kim Shin-bae told a press conference held in Seoul that KoreaÂ’s foremost wireless operator, plans to keep its self-imposed 52.3-percent market share restriction for the next two years.
SK Telecom will not expand its current market share beyond 52.3 percent until 2007.
Why?
Kim vowed that SK TelecomÂ’s market share will not exceed 52.3 percent to avoid imminent government regulations.
This promise was made just before the Ministry of Information and Communication held a meeting in 2004 to check the monopolistic status of SK Telecom after the merger with Shinsegi.
Nevertheless, by early 2005, SK Telecom has already carved out 51.2 percent of the countryÂ’s mobile telephony market with 19.1 million customers. Two other firms have market share: KTF has 12.1 million customers and LG Telecom has 6.2 million customers.
With regard to cell phone service, Korea's cell phone market is quite saturated with more than 37 million people out of the countryÂ’s total population of 48 million ownung at least one cell phone.
Kim notes that in this saturated market, marketing competition to attract more subscribers is no longer a sure bet for future growth. Instead, we must find growth engines in other fields.
Instead of trying to expand SK Telecom'’s market share, SK's focus is on next-generation mobile services.
Kim pledged that SK Telecom will spend resorurces on third-generation (3G) mobile phone services, called wideband code division multiple access (W-CDMA), which is based on the European telecommunications technology.
SK Telecom will not expand its current market share beyond 52.3 percent until 2007.
Why?
Kim vowed that SK TelecomÂ’s market share will not exceed 52.3 percent to avoid imminent government regulations.
This promise was made just before the Ministry of Information and Communication held a meeting in 2004 to check the monopolistic status of SK Telecom after the merger with Shinsegi.
Nevertheless, by early 2005, SK Telecom has already carved out 51.2 percent of the countryÂ’s mobile telephony market with 19.1 million customers. Two other firms have market share: KTF has 12.1 million customers and LG Telecom has 6.2 million customers.
With regard to cell phone service, Korea's cell phone market is quite saturated with more than 37 million people out of the countryÂ’s total population of 48 million ownung at least one cell phone.
Kim notes that in this saturated market, marketing competition to attract more subscribers is no longer a sure bet for future growth. Instead, we must find growth engines in other fields.
Instead of trying to expand SK Telecom'’s market share, SK's focus is on next-generation mobile services.
Kim pledged that SK Telecom will spend resorurces on third-generation (3G) mobile phone services, called wideband code division multiple access (W-CDMA), which is based on the European telecommunications technology.
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