일반산업
Overview of Telecommunication Market
2010-04-01KIM, Nam-Hoon
목차
요약
A Rapid Change in Telecommunication Market, Mainly Wireless
Internet Service, from a Perspective of Policy, Supply and
Demand
The government induces weirless internet service providers to reduce service fees and enhance service quality by easing relevant regulations and creating competitive
environment.
The government lifts asymmetric regulations between first movers and latecomer and lower an entry barrier to encourage new MVNO or WiBro providers to advance into the
market and create competitive environment. By doing so, it induces enhanced service
quality and reduced service fees.
In particular, the government lowers wire/wireless voice telecommunication and wireless internet service fees to expand comsumer benefits and invigorates wireless internet service to develop a wireless internet ecosystem and ensure growth of relevant industries.
As restrictions on wireless internet service users are removed, smartphone demand begins to be rapidly grow.
As wireless internet restrictions such as insufficient contents, high service fees and inconvenient handsets are relieved with the advent of iPhone, an outstanding smartphone, wireless internet services are becoming common and rapidly spreading.
As a result, consumers are aggressive about producing and consuming contents while handset manufacturers and carriers begin to play a active role in expanding smartphones in an effort to improve ASP and ARPU.
In particular, as handset providers are creating the content market and service users are producing contents, carriers' leading position will be increasingly shaken.
Carriers which face limitations of voice telecommunication actively begin to invigorate
data telecommunication services.
Carriers begin to be aggressive about expanding wireless internet services to ensure economy of scale, service fee reduction and integrated service for fear that the market is eaten away and their dominant position is shaken.
In particular, as it showed that all the top three carriers would integrate with other telecommunication- based industries and expand support and service, competition among carriers in other areas outside of telecommunication services is expected to heat up.
A Change in Competition Structure Requires Carriers to Diversity
Telecommunication Services
Carriers will see improved profitability through improved ARPU in the short term in
2010.
Despite reduced service fees and competition friendly policies by the government, carriers will see improved profitability for the time being thanks to increased number of wireless internet service users and improved ARPU.
In the long term, however, there are some threats caused by a low entry barrier and a unstable supply and demand condition.
The supply and demand condition will be unstable due to a low entry barrier, an increase in alternatives such as MVNO and mobile VoIp and increased number of competitors in the market. As the leading position in the value chain is divided into upstream and downstream sectors, the industry will face limitations of improving profitability of telecommunication services
Therefore, over the next three to four years, diversifying revenue streams through convergence and partnership from commission-based, current revenue stream will be an important assessment factor.
Internet Service, from a Perspective of Policy, Supply and
Demand
The government induces weirless internet service providers to reduce service fees and enhance service quality by easing relevant regulations and creating competitive
environment.
The government lifts asymmetric regulations between first movers and latecomer and lower an entry barrier to encourage new MVNO or WiBro providers to advance into the
market and create competitive environment. By doing so, it induces enhanced service
quality and reduced service fees.
In particular, the government lowers wire/wireless voice telecommunication and wireless internet service fees to expand comsumer benefits and invigorates wireless internet service to develop a wireless internet ecosystem and ensure growth of relevant industries.
As restrictions on wireless internet service users are removed, smartphone demand begins to be rapidly grow.
As wireless internet restrictions such as insufficient contents, high service fees and inconvenient handsets are relieved with the advent of iPhone, an outstanding smartphone, wireless internet services are becoming common and rapidly spreading.
As a result, consumers are aggressive about producing and consuming contents while handset manufacturers and carriers begin to play a active role in expanding smartphones in an effort to improve ASP and ARPU.
In particular, as handset providers are creating the content market and service users are producing contents, carriers' leading position will be increasingly shaken.
Carriers which face limitations of voice telecommunication actively begin to invigorate
data telecommunication services.
Carriers begin to be aggressive about expanding wireless internet services to ensure economy of scale, service fee reduction and integrated service for fear that the market is eaten away and their dominant position is shaken.
In particular, as it showed that all the top three carriers would integrate with other telecommunication- based industries and expand support and service, competition among carriers in other areas outside of telecommunication services is expected to heat up.
A Change in Competition Structure Requires Carriers to Diversity
Telecommunication Services
Carriers will see improved profitability through improved ARPU in the short term in
2010.
Despite reduced service fees and competition friendly policies by the government, carriers will see improved profitability for the time being thanks to increased number of wireless internet service users and improved ARPU.
In the long term, however, there are some threats caused by a low entry barrier and a unstable supply and demand condition.
The supply and demand condition will be unstable due to a low entry barrier, an increase in alternatives such as MVNO and mobile VoIp and increased number of competitors in the market. As the leading position in the value chain is divided into upstream and downstream sectors, the industry will face limitations of improving profitability of telecommunication services
Therefore, over the next three to four years, diversifying revenue streams through convergence and partnership from commission-based, current revenue stream will be an important assessment factor.