South Korean Telco’s bank on 5G and digital as traditional business stagnate
According to the report, 5G subscriptions in the country will outnumber 3G by 2020, following world’s first commercial 5G deployment during the Pyeongchang 2018 Winter Olympics, in Korea’s rural Gangwon province.
With growth of 5G, traditional communications services like fixed telephony and mobile voice will see a decline in revenue over the coming years. Voice service revenue will decline at an annual rate of 8.4% per year between 2016 and 2021, while mobile voice revenue will drop an average of 7.0% per year over the same period.
Telecoms market analyst – Malcolm Rogers said: “Operators around the globe faced with the same challenge, evolve to something more than a pipe provider or offer services that come with more utility. “However, the Korean operators have been among the most proactive in growing business outside the core of communication. Whereas operators in some markets have been slow to react to the digital disruption caused by OTTs and internet giants like Google and Amazon, the players in South Korea have been investing in new digital business for years.”
– Overall telecom service revenue in South Korea will decline at a CAGR of -0.5% during 2016-2021, mainly affected by declining voice revenue. Growth in the data services segment will also fail to offset declining voice services. The demand for high bandwidth online content and OTT services will be a key driver for the growth of mobile data in South Korea.
– Mobile revenue will account for 60.3% of total telecom revenue in 2021; mobile data will witness a CAGR of 1.5% during 2016-2021.
– The top two operators, KT and SK Telecom, accounted for 69.1% share of overall service revenue in 2016. We expect competition to intensify as operators are investing in 5G and fixed broadband.
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Table of Content: Key Points
Executive summary 4
Market and competitor overview
Regional context 6
Economic, demographic and political context 7
Regulatory environment 8
Demand profile 13
Service evolution 15
Competitive landscape 16
Major market players 17
Mobile services 21
Fixed services 25
Pay-TV services 29
Opportunities in the market 31
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