SEOUL, Feb.3 (Korea Bizwire) – SK Telecom announced that it would overcome its limits by broadening its horizons, as company executives decided that they would not be able to achieve meaningful growth in telecommunications this year.
Company officials emphasized that the company will expand its media division and develop new business models to be reborn as a multimedia platform provider.
Among the three major telecom companies in Korea, SK Telecom was the only one to experience a fall in sales, business profits and net profits last year. Company performance struggled under pressure to lower costs.
The market share of SK Telecom went under 50 percent for the first time, and the uptrend in average revenue per user (ARPU) also came to a halt. Data usage and the share of LTE increased, but the number of customers who subscribed with a 20 percent discount increased greatly, which did not contribute much to sales.
To get through difficult times, SK Telecom is seeking to shift its focus. ‘Escaping telecommunications’ was a phrase often repeated by domestic telecommunication providers when they met a limit in growth, but SK Telecom is the first to actually lay out its new business plans.
The company plans to use its competitive edge as a service provider to expand everyday life services. It also seeks to establish a profit-making platform by connecting Internet of Things (IoT) with cars and energy, opening a new market.
The acquisition of CJ Hellovison will also be helpful in strengthening the competitive edge of the content to be provided.
SK Telecom is pushing its media content platform ‘OkSuSu’ upfront. The service provides premium video streaming, which best suits mobile devices, and aims to be a hub for one-person broadcasting.
SK also has high hopes for its affiliate SK Planet. It plans to invest its assets in SK Planet, and attract external investments if needed.
In addition, SK Telecom promised that it would recover its sales in the telecom sector. If media consumption is stimulated, data usage should also increase, and lead to an increase in telecom costs.
SK hopes that data usage will grow among subscribers, and it will continuously launch budget devices such as Luna and Sol.
By Francine Jung (email@example.com)