SHOW time for KTF

KTF launched SHOW, its WCDMA service, last March 1st. The 1st Million mark was passed on July the 6th and 10,000 newcomers are joining every day (1,277,000 end of July 2007). "WCDMA" is now a cooler label than EV-DO in Korea. And it shows in KTF's end of July figures : during the last 3 month, its market share remained stable despite a 245k subs growth, but EV-DO subs were down (-45k). The 2-3G migration goes on (3G representing 52.8% of total, up from 47.4%) but furthermore, this confirms the CDMA migration has started, even at the 3G level (EV-DO down to 43.2% from 44.3%, WCDMA up from 3.0% to 9.6%).

Enough with boring figures. From a marketing point of view, you just need to know SHOW is the first real answer to June, SK Telecom's cool brand launched with EV-DO ages ago*.

As the name tells us, SHOW targets entertainment lovers in their 20s rather than business segments. And there is that "play" feature in the "O" of the logo. One third of subs use video telephony, especially couples. So KTF decided to launch, after the success of Movie Tariff Plan (1 free movie ticket per month included), a Movie Tariff Plans for Couples. And while they were at it another one for SMS addicts.

International Roaming (traditionaly restricted to the 2-3G CDMA world before) was another major sales pitch, and KTF announces more developments with partners DoCoMo / Conexus Mobile Alliance and Microsoft. Non-handset devices with USB connectivity are mentioned.

I guess it's time for KTF to propose something more relevant for business targets.

http://www.show.co.kr/ / http://www.conexusmobile.com/

* note that, unlike KTF, SKT declares no specific plan for migration to WCDMA. But the mobile leader is obviously and at last preparing triple play solutions with cablecos and fixed broadband players. As usual with a content flavor ("cable TV programs" are mentioned).

Neck plus ultra

Step by step, TU media is making DMB history :

• SK Telecom launched their satellite last march but it took them almost a year to launch a preservice for early adopters - but don't blame this master of TTM for the delay : regulatory hurdles were tough (actually, SKT literally had to build their own arena to make sure the race would start before competitors were born).
• for a week now, TU media preservice has been freely providing 3 video channels already familiar to June customers (Music with m-net, News with YTN and Drama with SBS Drama and MBC Drama) plus 6 audio channels. Ads have been running featuring a man pushing a shopping cart while his son's enjoying a show on the horizontally turned 5.5 cm screen of the Samsung SCH-B100 hanging from his father's neck. With mini mobile theaters, it's not about the audience doing some necking when the lights are out - it's about the theater itself ruining the owner's neck.
• That's a 622 euro (850,000 W) theater and batteries are supposed to run for 150 mn of intensive usage : forget a LOTR marathon or handset subsidies (the latter forbidden by the government). And Koreans also have to invest in digital TV : already 15% own it today for a projected 48% end 2007 according to the Electronic Industries Association of Korea...* More devices (including in-car sets) will be available by may, when overall 14 video and 24 audio channels are broadcasted (the first 3 data channels are scheduled for 2005).
• The access fees will then cost about 14.6 euros per month (20,000 wons) and SKT expects a 9.5 euro (13,000 wons) ARPU. Not too aggressive a business plan considering today's wireless internet ARPU for SKT's WI enabled handset owners (about 6 euros according to their monthly stats). SKT's partner in Japan MBCo launched their DMB service last october and claims a lousy 10,000 subscribers but they solely provided in-car devices and don't have the marketing power of Korea's leader. SKT expects 600,000 subscribers end 2005 and 5.6M end 2010. Not aggressive either : that's the equivalent of 3 and 30% of their customer base and it took much less time for them to equip 6M people with EVDO handsets.

How about cannibalization, then ? That's the big issue... but that's also the way this first mover is keeping its edge. Stephane MOT

* while we're at it : Korea remains at the top for broadband access among OECD members (24.08% equipment rate - to be compared to 15% for Canada, the distant runner-up). If you are to believe last NIDA poll, 69.3% of all Koreans already used the internet at home back in june 2003 (55% through xDSL and 9.5% through CATV), 46.3% managed more than one e-mail address (and 12.6% their own homepage - thank you Cyworld). Wireless internet usage reached 36.1% (over 83% for the 12-19 year olds), and among users 53.4% paid for premium sites and 21.2% did some m-shopping (74.5% for downloading stuff but already 14.3% for clothes, groceries or food).