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

AI Supercycle: Server Market Growth Surge

The worldwide server market has entered a new phase defined almost entirely by artificial intelligence (AI) infrastructure economics rather than traditional enterprise refresh cycles.   The latest market data shows robust growth and a structural shift in where value is created, who captures it, and which architectures are setting the pace for the next decade. IDC reports that worldwide server revenue reached a record $112.4 billion in the third quarter of 2025, representing a striking 61 percent year-over-year increase compared to the same quarter in 2024. For context, this means the market is adding tens of billions of dollars in incremental quarterly spend, driven overwhelmingly by AI and accelerated computing requirements.  IT Server Market Development Over the first three quarters of 2025, server revenue has already reached $314.2 billion, meaning the market has nearly doubled in size compared to 2024, underscoring how AI buildouts have compressed several years of exp...