Skip to main content

Mobile Content Grows in South Korea Market

The main engines of growth in South Korea's telecom market from 2010 to 2014 will be services built around broadband technologies -- such as VoIP, IPTV, and mobile data, according to the latest market study by Pyramid Research.

South Korea is arguably the most advanced communications market in the world -- with its 75 percent household fixed broadband penetration rate and 86 percent mobile user penetration rate at year-end 2008.

"Despite the expected decline in service revenue in 2009, Pyramid Research expects the market to rebound and to grow at a CAGR of 4.9 percent during the next five years, generating $29.5 billion by 2014," notes Tae Hyung Kim, analyst at Pyramid Research.

VoIP subscribers increased eight-fold from just 0.3 million subscribers in 2006 to 2.5 million in 2008 due to the enactment of VoIP number portability and Pyramid expects the trend to continue throughout the forecast period.

"With 18.8 million pay-TV subscriptions in a country of 17.6 million households, South Koreans are familiar with the idea of paying money for premium content," says Kim.

"Although cable TV operators dominate the scene with 77 percent share of the pay-TV market, IPTV is a real threat, which all three fixed operators launched in the first quarter of 2009," he explains.

With the regulatory obstacles cleared, attractively priced and bundled with other services will enable IPTV to account for 27 percent of pay-TV subscriptions by year-end 2014.

South Korean consumers are a prime target for mobile content -- given their familiarity and comfort with online content. "Re-education combined with transparent and affordable pricing levels should be all that is needed to reignite the mobile content market in South Korea," Kim says.

Popular posts from this blog

Global Rise of Domestic Payment Ecosystems

Alternative Payment Methods (APMs) – comprising digital wallets, instant payments, and QR payment systems – are experiencing explosive growth that's reshaping the global financial services marketplace. According to the latest worldwide market study by ABI Research , the combined global transaction value for APMs is projected to reach $142 trillion by 2030. What's particularly fascinating is the underlying driver behind this trend: a growing desire for financial sovereignty, with nations developing domestic payment ecosystems rather than remaining dependent on international financial networks. Payment Ecosystem Market Development In 2024, approximately 45 percent of the global population used digital wallets – a remarkable adoption rate for a technology that barely existed a decade ago. China leads this transition, with 95 percent of its population using WeChat's payment functionality. WeChat exemplifies the "super app" phenomenon, where payment capabilities are in...