Skip to main content

South Korean Mobile Operators Leading VAS

With one of the most advanced wireless services and device markets in the world, the South Korean handset market is among the world's sophisticated pioneers of Value-Added Services (VAS) marketing, according to an In-Stat assessment.

All three mobile operators -- SK Telecom, Korea Telecom Freetel (KTF) and LG Telecom -- have adopted CDMA technology and have migrated to a high speed CDMA200-1X EV-DO network, the high-tech market research firm says.

"Comprehensive value-added services, including mobile banking, mobile finance transactions, mobile wallet, multimedia and location-based services, have all been introduced and are well accepted among Korean mobile users," says Jill Meyers, In-Stat analyst.

"While Korean phone makers are gaining traction in overseas markets, international handset brands are having success entering the Korean market."

I believe that much of the Asia-Pacific region continues to lead the rest of the world in advanced applications of mobile phone devices. Numerous market research studies have substantiated this belief. The ongoing leadership appears to be rooted in superior market development expertise, not technology per se.

The lesson learned: the VAS market opportunity cannot develop with strategies based upon the notion of managed scarcity of high-priced offerings. While this approach may work well for Gucci, it is essentially a "plan to fail" for mainstream mobile phone operators.

Recent research by In-Stat found the following:

- 350 phone models available in South Korea have music-playing functionality, while 159 models enable users to perform bank transactions and make payments with their phone.

- In 2006, more than 16 million mobile phones were sold in South Korea.

- Samsung was the market leader in 2006, with about 50 percent market share, followed by LG and Pantech.

Popular posts from this blog

The AI Application Integration Challenge

Artificial intelligence (AI) has rapidly become the defining force in business technology development, but integrating AI into applications remains a formidable challenge. According to a recent Gartner survey, 77 percent of engineering leaders identify AI integration in apps as a major hurdle for their organizations. As demand for AI-powered solutions accelerates across every industry, understanding the tools, the barriers, and the opportunities is essential for business and technology leaders seeking to evolve. The Gartner survey highlights a key trend: while AI’s potential is widely recognized, the path to useful integration is anything but straightforward. IT leaders cite complexities in embedding AI models into existing software, managing data pipelines, ensuring security, and maintaining compliance as persistent obstacles. These challenges are compounded by a shortage of skilled AI engineers and the rapid evolution of AI technologies, which can outpace organizational readiness and...