IPTV, VoIP, Mobile Data to Drive Revenue Growth in South Korea’s Telecom Market, Finds Pyramid

CAMBRIDGE, Massachusetts -

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 report from Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).

Communications Markets in South Korea offers a precise, incisive profile of the country’s converged telecommunications, media, and technology sectors based on proprietary data from our research in the South Korean market. The 29-page report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMax, IPTV, and VoIP. This executive study provides a comprehensive view of the South Korea communications market by analyzing key trends, evaluating near-term opportunities and assessing upcoming risks factors. Download an excerpt of this report here: www.pyramidresearch.com/downloads.htm?id=18&sc=PR090109_CIRSOKO

South Korea is one of the most advanced communications markets 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 in U.S. dollar terms, Pyramid Research expects the market to rebound and to grow at a CAGR of 4.9 percent during the next five years, generating US$29.5 billion by 2014,” notes Tae Hyung Kim, analyst at Pyramid Research and author of the report. The main engines of growth from 2010 to 2014 will be services built around broadband technologies such as VoIP, IPTV, and mobile data. “Due to near saturation in the fixed market, operators are turning to value-added services such as VoIP, IPTV, and broadband applications to create additional revenue streams,” says Kim.

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 Korea has one of the lowest levels of mobile data usage among developed markets, largely because of a history of nontransparent and exorbitantly high pricing for content. South Korean consumers, however, 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.

Communications Markets in South Korea is part of Pyramid Research’s Asia/Pacific Country Intelligence Report Series. Pyramid Research’s premium Country Intelligence Reports are the industry’s best available analysis on market trends, regulatory environments, and competitive dynamics for 60 countries worldwide. Download an excerpt of this report here: www.pyramidresearch.com/downloads.htm?id=18&sc=PR090109_CIRSOKO

Communications Markets in South Korea is priced at US$990 and can be purchased online here: www.pyramidresearch.com/store/CIRSOUTHKOREA.htm?sc=PR090109_CIRSOKO or through Amalia Vega via email at avega@pyr.com or telephone at +1-809-330-4520.

For more information about Pyramid Research’s products and services, please visit www.pyr.com or contact us at info@pyr.com.

About Pyramid Research

Pyramid Research (www.pyr.com) offers practical solutions to the complex demands our clients face in the telecommunications, media and technology industries. Our analysis is uniquely positioned at the intersection of emerging markets, emerging technologies and emerging business models, powered by the bottom-up methodology of our market forecasts for over 100 countries - a distinction that has remained unmatched for more than 25 years. As the telecom research arm of the Light Reading Communications Network, Pyramid Research works with Heavy Reading, providing the communications industry’s most comprehensive market data, trusted research and insightful technology analysis.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and focused event company serving the US$3 trillion worldwide communications market. Lightreading.com is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading’s research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events, Interop, Web 2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, and Wall Street & Technology magazines. TechWeb also provides end-to-end services including next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than US$2.5 billion.

*13.3 million business decision-makers: based on number of monthly connections

About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM’s businesses inform markets and serve professional commercial communities - from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists - with integrated events, online, print, and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to www.unitedbusinessmedia.com.

Press contact: Jennifer Baker +1-617-871-1910 jbaker@pyr.com

Source: Pyramid Research

Jennifer Baker, +1-617-871-1910, jbaker at pyr.com