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Press Release
Moving to acquire a Satellite Digital Multimedia Broadcasting (DMB) Business license in July.
Signed a contract with Japan’s Mobile Broadcasting Corp. (MBCO) for the purchase of a satellite in July, and planning to blast off the satellite by the end of this year, or early in 2004.
Cuts purchasing and maintenance expense through planned joint use of satellite. SK Telecom announced earlier this week that next month the company will form a consortium to launch its satellite digital multimedia broadcasting (DMB) service.
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The customer is shown watching DMB broadcasting program with vehicle installment type mobile terminal through the pilot satellite DMB service.
On the 23rd of July, the Company held a public meeting with journalists and stock analysts in the SK Telecom building, to announce the creation of a Satellite DMB Business.
Shin Bae Kim, head of SK Telecom’s Strategic Planning Managerial Group, and Sang Gil Lee, head of SK Telecom’s PMSB Business Group, participated in the public meeting.
SK Telecom revealed that it will establish a useful consortium by the end of July by selecting DMB service-related companies, including broadcasters, car manufacturers, equipment manufacturers, distribution companies, and telecom operators. They will then apply for a license from the Broadcast Authorities.
Upon obtaining the investment approval from the Board of Directors on the 24th, SK Telecom will finalize an agreement with Japan’s Mobile Broadcasting Corporation (MBCO), to offer the service to subscribers by the end of this year, or early in 2004.
According to SK Telecom, subscribers will reap the most in benefits due to the formation of this consortium, because consortium members will share a satellite, insurance, ground control, and operational costs.
Due to these alliances SK Telecom will be able to offer the service at an attractive price. Sang Gil Lee, head of SK Telecom’s PMSB Business Group, said "The satellite DMB service is a new media that can satisfy consumers’ demands for watching mobile broadcasting that overcomes the existing broadcasting services’ limits of time and space.
This service will contribute to enlarging the overall domestic broadcasting industry by expanding the mobile service user base, and enlarging the content industry that develops mobile broadcasting content.
SK Telecom initially investigated the viability of a satellite DMB business in early 2001, and registered for a satellite orbit from the International Telecommunication Union (ITU) in September of that year.
The company established a strategic alliance with MBCO in October 2002, and in April of this year, it made an agreement with the Korea Meteorological Administration to begin disaster news broadcasting through a satellite DMB service.
In particular, the satellite DMB business requires the adjustment of satellite networks with surrounding countries. As of May of this year, the company has completed the adjustment of 80 satellite networks with 13 countries out of the current 117 satellite networks in 19 surrounding countries. SK Telecom plans to complete the adjustment of the rest of the satellite networks during this year.
With respect to the equipment development sector, a ’Terminal Development Council’ consisting of 19 terminal manufacturers was formed in February to speed the development of terminals, and commercialize the service at an early stage.
Currently, the Council has under development a variety of functional and cost-effective terminals. SK Telecom plans to launch a commercial product, in line with the pilot service, in March of 2004.
SK Telecom projects that the Korean market for DMB service will be about 500,000 subscribers in 2004, 1 million in 2005, 2.2 million in 2006, and 8 million in 2010. Based on these projections, the company will achieve BEP by 2006, and accumulated BEP by 2008, thereby realizing investment profits for the shareholding companies at a relatively early stage.
According to the studies conducted by the Electronics and Telecommunications Research Institute (ETRI) and Korea Information Society Development Institute (KISDI), from 2004 to 2010 the DMB business will generate KRW8.8 trillion from production, KRW4.2 trillion of value-added service, and create 22,000 jobs. This is causing high expectations in the equipment sector of the IT industry.
DMB is a multimedia mobile information platform that can transmit text, videos, and television images to moving vehicles. SK Telecom’s DMB service will allow its subscribers to watch satellite-television broadcasts on their cell phones and in their cars, through a special receiver.
Shin Bae Kim, head of SK Telecom’s Strategic Planning Managerial Group, and Sang Gil Lee, head of SK Telecom’s PMSB Business Group, participated in the public meeting.
SK Telecom revealed that it will establish a useful consortium by the end of July by selecting DMB service-related companies, including broadcasters, car manufacturers, equipment manufacturers, distribution companies, and telecom operators. They will then apply for a license from the Broadcast Authorities.
Upon obtaining the investment approval from the Board of Directors on the 24th, SK Telecom will finalize an agreement with Japan’s Mobile Broadcasting Corporation (MBCO), to offer the service to subscribers by the end of this year, or early in 2004.
According to SK Telecom, subscribers will reap the most in benefits due to the formation of this consortium, because consortium members will share a satellite, insurance, ground control, and operational costs.
Due to these alliances SK Telecom will be able to offer the service at an attractive price. Sang Gil Lee, head of SK Telecom’s PMSB Business Group, said "The satellite DMB service is a new media that can satisfy consumers’ demands for watching mobile broadcasting that overcomes the existing broadcasting services’ limits of time and space.
This service will contribute to enlarging the overall domestic broadcasting industry by expanding the mobile service user base, and enlarging the content industry that develops mobile broadcasting content.
SK Telecom initially investigated the viability of a satellite DMB business in early 2001, and registered for a satellite orbit from the International Telecommunication Union (ITU) in September of that year.
The company established a strategic alliance with MBCO in October 2002, and in April of this year, it made an agreement with the Korea Meteorological Administration to begin disaster news broadcasting through a satellite DMB service.
In particular, the satellite DMB business requires the adjustment of satellite networks with surrounding countries. As of May of this year, the company has completed the adjustment of 80 satellite networks with 13 countries out of the current 117 satellite networks in 19 surrounding countries. SK Telecom plans to complete the adjustment of the rest of the satellite networks during this year.
With respect to the equipment development sector, a ’Terminal Development Council’ consisting of 19 terminal manufacturers was formed in February to speed the development of terminals, and commercialize the service at an early stage.
Currently, the Council has under development a variety of functional and cost-effective terminals. SK Telecom plans to launch a commercial product, in line with the pilot service, in March of 2004.
SK Telecom projects that the Korean market for DMB service will be about 500,000 subscribers in 2004, 1 million in 2005, 2.2 million in 2006, and 8 million in 2010. Based on these projections, the company will achieve BEP by 2006, and accumulated BEP by 2008, thereby realizing investment profits for the shareholding companies at a relatively early stage.
According to the studies conducted by the Electronics and Telecommunications Research Institute (ETRI) and Korea Information Society Development Institute (KISDI), from 2004 to 2010 the DMB business will generate KRW8.8 trillion from production, KRW4.2 trillion of value-added service, and create 22,000 jobs. This is causing high expectations in the equipment sector of the IT industry.
DMB is a multimedia mobile information platform that can transmit text, videos, and television images to moving vehicles. SK Telecom’s DMB service will allow its subscribers to watch satellite-television broadcasts on their cell phones and in their cars, through a special receiver.