2002 KTF Mobile Internet Service Update
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1 2002 KTF Mobile Internet Service Update Oct, 15, 2002 Dr. Terry Ahn New Business Group, KTF 0
2 History of KTF Company Profile Founded in January 1997 Major Shareholders ( The end of 2001) Launched PCS services in October 1997 Strategic alliance with Microsoft, QUALCOMM and CDPQ in Nov Listed on Kosdaq in Dec Acquire 500M subs in the shortest period in May 2000 Merged with KTM.com as of May 1, 2001 Altered Company s name to KTF in June nd largest wireless company in Korea with 33% combined market share(sub : 10.1M, August 2002) Others 53.4% Microsoft 1.7% KT 40.2% CDPQ 2.3% Qualcomm 2.4%
3 Mobile Internet Service Evolution From Text to Multimedia!!! ~ Broader Bandwidth!!! ~ ~ HandyNet (Interactive SMS) Intelligent Integrated Interactive IS-95A ~ PersNet Service Mobile Browser : ME1.0 IS-95B New Brand Advanced Mobile Browser(ME1.2~) 2G IS-95B multipack Icon type Application Download 2.5G 1x-RTT ~ MMS VOD 3G Service Multimedia 3G 1xEv-Do
4 Korean Mobile Market Cellular penetration : ~ 65% ( 31M out of 47.7M pop., July 2002 ) 1x-RTT Sub. & penetration : ~ 36.8%(11.4M out of 31M, July 2002) Mobile Browser standard & penetration (July 2002, Korea MIC) Total Subs. ME / WAP Browser M/S Pen. Rate KTF 10.1 mil 8.1 mil ME 35.1% 80.2% SKT 16.6 mil 11.9 mil WAP 51.5% 71.7% LGT 4.3 mil 3.1 mil WAP 13.4% 72.1% Total 31.0 mil 23.1 mil 100% 74.5% Penetration Rate by Age Group Population Subscribers 98% 76% 9% 36% 89% 23% 10~ 12 13~18 19~24 25~35 36~59 60~
5 Contents Tops of magicn The Number of Browser-enabled Handsets : 8.1M in the market The top ranking services are digital accessories for decorating handsets? Data Source : KTF statistics(july, 2002) 1st 2nd 3rd 4th 5th Top 5 Contents for 2G Magic? Ringtone Downloading Character Downloading Picture Downloading MSN (Portal&Mail) DAUM (Portal&Mail)
6 Shift from Contents to Application Icons on PC Screen Contents C C C C ME/WAP Browser SMS Client OEM App... Focus on Contents UI MSM Chip Contents C C C C C C C C Handset Architecture Enabler ME Browser Stock Browser Map Browser VOD Player E-Book Viewer News Viewer Game Applications Middleware Platform UI MSM Chip Focus on App. App. Download Over the Air BREW or JAVA
7 New Win-Win Business Model New win-win business model enlarges mobile internet market Technology Provider Middleware Platform Handset Manufacturer Contents Provider Contents Provider Contents Provider Service Provider with Applications Service Provider with Applications Operator Network Operation Billing Marketing & Promotion Customer Care Application & Contents Delivery multipack Customer Providing various and easy-to-use services by App. Downloading Satisfying Customer Needs Wireless S/W Sales Business : Newer and More Revenues to CP/SP Increasing Data Airtime of Operators
8 Service Tops of Magicn multipack User-Friendly, Icon Interface Multi-pack Subscribers ( 000) 1,178 1, Nov-01 Jan-02 Mar-02 Jun-02 Jul-02? As of July, st 2nd 3rd 4th 5th Top 5 Contents for 1x Magic? multipack Theme Park (Ringtone&Character Downloading) Karaoke VOD Player Internet Go Stop (Online Game) Internet Adult TV (Picture&Video feeds)
9 1xRTT and Wireless Data Performance Number of 1xRTT Subs (unit : Thousand) ,424 1,020 2,154 1,929 2,527 2,891 3,167 Data Service Revenue (KRW Bn) Oct-01 Nov-01 (KRW) Dec-01 24,464 Jan-02 Feb-02 Mar-02 Apr-02 May-02 June-02 1x ARPU by Handset (1) Data ARPU 30,323 Voice ARPU 34,462 July-02 30,496 3Q 01 4Q 01 1Q 02 2Q 02 Data ARPU / Total ARPU 6.5% 8.2% 9.1% 478 2,176 3,405 5,688 `` 5.3% 2G (1) As of June x-Non multipack 1x-Color Non multipack 1x-multipack Jan-01 Jun-01 Jan-02 Jun-02
10 Key Success Factors Value to Customers!!! Fast, Easy, Fun & Useful!!! Early Mover : Early launch of Data Services in 1998 Data Enabled Handset Supply Basic Infra for Mobile Internet Standardized Handset Functions by Carrier, not Manufacturer Marketing&Promotions / Customer Training for use Color LCD and MIDI Handset / High Speed Network(1xRTT, 1xEv-Do) / Multimedia Platform Large Numbers of Content and Service Providers - Killer Services, Win-Win Business Model
11 Multimedia Messaging Service(MMS) Phone to Phone Long Text Text + Image, MIDI, Video clip Text + Video message Handset with Digital Camera Phone to Long Text Text + Image, MIDI, Video clip Text + Video Message Handset with Digital Camera Web to Phone to phone(push service) Contents delivering(news, Education, MP3, Video clip, etc)
12 Video On Demand (VOD) Store & Play VOD Small Video Clip Education, Music Video, Movie preview, News.. Streaming VOD (Live Broadcasting of TV) Long time video clip TV broadcasting, Movies
13 Thank you. 3G
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