SK Telecom Roaming Business

Transcription

1 SK Telecom Roaming Business - Experiences and Outlook - SK Telecom 2003.Dec.11 Presentation Material for CDMA Global Roaming Forum

2 SK Telecom CDMA Roaming Service Currently Covers 12 countries outbound (2003.3Q) Reached 18.7 million U$ outbound sales* 336% growth over FY 02, and keeps growing China, USA, Japan occupy 84% total sales * 2003.Jan.~Oct.

3 In Customers Mind Now 82.5% of Korean overseas travelers know what roaming is But only 19% of Korean overseas travelers actually use it Substantial roamers are just keeping their handsets for Emergency Use Only Price barrier is the main reason * 2003.Jan.~Oct.

4 And they spend less and expect more ARPU is Dropping as # of monthly roamers increase. Roamers : 25,663(March)! 68,053(August) ARPU : 46$(March)! 41$(August) Customer needs are becoming sophisticated Charges not much greater than domestic home rate Call Quality similar to domestic environment

5 Customer Centric Features will Promise Higher ARPU CNIP (available in most coverage) Enables roamers to screen unwanted calls " charge saver Can enable LetteRing service to roamers Increase call backs to missed calls " ARPU booster SMS termination (not available in US coverage yet) Makes roamers feel connected to home while traveling Make a roamer want to call back to SMS sender A roamer can respond to incoming calls received when handset was power-off # Call Keeper Services SMS origination (not available currently) May decrease a few calls which could be made otherwise But will be over-compensated by call originations from Emergency Only Users

6 Why Data? Non-SMS data revenue surpassed that of the SMS Since July the gap is ever widening Monthly 22 million$ vs. 48 million$ as of December Total data revenue represented 12% of SKT s revenue in 4Q 02 Now Over 11 million Subs use CDMA2000 1X handsets Wireless Internet enabled handset holders account for 88% of total subscribers Global Trends also show 14% of CDMA subs use data services 2% of GSM subs use GPRS services (EMC database)

7 What Roamers expect to do with data services Call Keeper News Update & Stock Quotes Mail Check Live TV steaming Photo Mail Internet Access ColoRing LetteRing Location Based Service Game Mobile Coupon Moneta In case of Power Off and No Page Response, Call Keeper Server stores called history including calling number and time of day The server delivers history relating to called information though SMS -SMS notification -ARS check enabled -Can be accessed by web -Can be accessed by WAP 17% of SKT subs use this

8 What Roamers expect to do with data services Call Keeper News Update & Stock Quotes Mail Check Live TV steaming Photo Mail Internet Access ColoRing LetteRing Location Based Service Game Mobile Coupon Moneta Roamers usually Crave News from their Home Town

9 What Roamers expect to do with data services Call Keeper News Update & Stock Quotes Mail Check Live TV steaming Photo Mail Internet Access ColoRing LetteRing Location Based Service Game Mobile Coupon Moneta NEWS TV This is Sample of Highway CCTV. Public Broad Cast Channel and VOD channel are also available

10 What Roamers expect to do with data services Call Keeper News Update & Stock Quotes Mail Check Live TV steaming Photo Mail Internet Access ColoRing LetteRing Location Based Service Game Mobile Coupon Moneta Seeing is believing Make a Call to my Phone It allows a subscriber to customize a specific music or sound that is played to the calling party replacing the conventional legacy ring back tone Current COLORing subscribers are about 6.5 millions. (36%)

11 What Roamers expect to do with data services Call Keeper News Update & Stock Quotes Mail Check Live TV steaming Photo Mail Internet Access ColoRing LetteRing Location Based Service Game Mobile Coupon Moneta PRINCESS *^^* Calling party delivers predetermined text such as Be Happy with called number to receiving party

12 What Roamers expect to do with data services Call Keeper News Update & Stock Quotes Mail Check Live TV steaming Photo Mail Internet Access ColoRing LetteRing Location Based Service Game Mobile Coupon Moneta SMS basis Packet Data Basis Financial Enabler Basis

13 Network Connectivity Secured Real time end to end AAA Connectivity SK Telecom Network Public Internet China Unicom Network CP(1) CP(2) AAA WAP Gateway Flow of Data Internet G/W Flow of Authentication/Signal Realtime Communication on Billing Session Start/End Internet G/W Authentication response AAA PDSN BSC Base Station Authentication request Data Voice MSC

14 Inter-carrier Billing & Settlement Settlement Cycle: Monthly Cycle Reference AAA Home Carrier settles by Serving AAA basis Only when difference between Home and Serving AAA lies within 3% Charging Basis : Monthly Total Bytes used by All roamers from Home Carrier Charging Unit: Serving Carrier Packet Korea: 1packet = 152 bytes China: 1packet = 1024 bytes Japan: 1packe =128 bytes

15 Considerations for Customer Charging Domestic Data Price is Contents basis WAP text navigation: 0.58 cents/512 bytes Small Multimedia Contents: 0.22 cents/512 bytes Large Multimedia Contents: 0.12 cents/512 bytes But Serving Carriers network usually do not identifies contents type! Single & flat IOT Frequent users will have complaints when they use data services like they used to do when in Korea

16 SKT s s Approach to Customer Charging Progressive Tier Pricing Up to 1 MB : Highest Rate!0.6 cents/512 bytes Additional 9 MB : Middle Rate!0.27 cents/ Additional packets over 10 MB!0.1 cents/ Last tier pricing is lower than IOT. By Doing So, Customers Could have price perception similar to Domestic use. 10%~15% higher than domestic price in average

17 Pre-Launch Test Result 15 day trial open WITHOUT any customer notice or promotion 1,019 roamers to China accessed data network in China (out of 12,000 China-bound roamers during the same period) 308MB total Traffic (5,000 US$ Estimation) Will be a hidden Killer roaming product in 1 or 2 years.

18 Thank You For more Information, Please contact Steve Lee