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Press Release
SK Telecom and Japan’s Mobile Broadcasting Corp. (MBCO) Sign a Contract for joint possession of a Satellite.
2003.09.25 PrintJoint possession of a satellite for Digital Multimedia Broadcasting (DMB) for the first time in the world. Plan to launch the satellite by January of 2004.
Cuts over 150 billion Korean won of purchasing and maintenance expense through the planned joint use of the satellite.
Holds ’Joint Ceremony of Satellite Frequency Adjustment’ between the Korean and Japanese governments.
Moves to acquire a Satellite Digital Multimedia Broadcasting (DMB) Business license in October of this year by forming a Grand Consortium.
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Moon Soo Pyo (on right), president of SK Telecom, and Michoguchi Tezya(on left), president of MBCO, are shown shaking hands after signing a contract in the `Contract Signing Ceremony for Jointly Possessing a Satellite` on the 25th of September
"SK Telecom is moving rapidly to launch the world’s first Satellite DMB business by resolving current-pending questions."
On the 25th of September, SK Telecom and Japan’s MBCO held a ’Contract Signing Ceremony for Joint Possession of a Satellite’ at the Imperial Hotel in Tokyo. The participants were: Moon Soo Pyo, president of SK Telecom, Jun Dong Bae, vice-president of SK Telecom’s PMSB Business Group, Michoguchi Tezya, president of MBCO, and Suenaga, vice-president of MBCO.
In addition, the ’Joint Ceremony of Satellite Frequency Adjustment’ between the Korean and Japanese governments was held. Cho Kyu Cho, manager of the Frequency Bureau of the Korean Ministry of Information and Communication, Takeda, head of the Frequency Bureau of the Japanese Ministry of Government Administration, and Kouno, head of the Frequency Policy Office of the Japanese Ministry of Government Administration, participated in this ceremony. This has settled one of the most important issues in the Satellite DMB business.
Based on the coverage and the number of base stations each company will operate, SK Telecom and MBCO determined a satellite purchase ratio of 34.66%(SK Telecom), and 65.34%(MBCO) respectively. Therefore, SK Telecom will bear about 92 billion won, out of a total of 265.4 billion won, that covers the cost of satellite purchase, satellite launch, control tower operation, insurance, etc.
Under this contract for jointly operating a satellite, SK Telecom will share satellite, insurance, ground control tower, and operational costs. This will result in a saving of about 150 billion won over the costs of operating the satellite on its own. This will let SK Telecom offer the service at an attractive price to its customers.
The two companies agreed to constantly cooperate in the joint technological development, marketing, and free use of both company’s patents, as well as crossing investments in the satellite DMB Corporation. They also reached an agreement to jointly develop overseas operations in international markets such as china.
In February of this year in order to develop this contract with MBCO of Japan, SK Telecom formed a ’Satellite Purchase Task Force Team’ that consisted of legal experts, satellite technicians, and control tower experts. The companies have met to negotiate fifteen times, since starting the first negotiation on March 15th.
SK Telecom also revealed that in order to form a consortium, the company is under negotiation with DMB service-related companies, including broadcasters, car manufacturers, equipment manufacturers, distribution companies, program providers and telecom operators. The company plans to complete the consortium by October of this year.
In addition, the company will launch a satellite DMB corporation sometime this year, and launch the satellite by January of 2004. Revealing a series of plans, SK Telecom disclosed its strong will to obtain a satellite DMB business license.
Sang Gil Lee, head of SK Telecom’s PMSB Business Group, said " Under the agreement for joint use of a satellite, and satellite frequency adjustment between the Korean and Japanese governments, the most important pending issues in the Satellite DMB business have been settled. We will put forth our best efforts to successfully launch the world’s first Satellite DMB."
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.
With respect to the equipment development sector, the ’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 a variety of functional and cost-effective terminals under development. 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.
The satellite DMB business has great effect on related industries because it is a facilities-based project. According to sources released by the Korean Society for Journalism and Communication Studies, from 2003 to 2012 the DMB business will generate 9 trillion won from production, 6.3 trillion of value-added service, and create 185 thousand jobs. This is causing high expectations in the Korean 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.
On the 25th of September, SK Telecom and Japan’s MBCO held a ’Contract Signing Ceremony for Joint Possession of a Satellite’ at the Imperial Hotel in Tokyo. The participants were: Moon Soo Pyo, president of SK Telecom, Jun Dong Bae, vice-president of SK Telecom’s PMSB Business Group, Michoguchi Tezya, president of MBCO, and Suenaga, vice-president of MBCO.
In addition, the ’Joint Ceremony of Satellite Frequency Adjustment’ between the Korean and Japanese governments was held. Cho Kyu Cho, manager of the Frequency Bureau of the Korean Ministry of Information and Communication, Takeda, head of the Frequency Bureau of the Japanese Ministry of Government Administration, and Kouno, head of the Frequency Policy Office of the Japanese Ministry of Government Administration, participated in this ceremony. This has settled one of the most important issues in the Satellite DMB business.
Based on the coverage and the number of base stations each company will operate, SK Telecom and MBCO determined a satellite purchase ratio of 34.66%(SK Telecom), and 65.34%(MBCO) respectively. Therefore, SK Telecom will bear about 92 billion won, out of a total of 265.4 billion won, that covers the cost of satellite purchase, satellite launch, control tower operation, insurance, etc.
Under this contract for jointly operating a satellite, SK Telecom will share satellite, insurance, ground control tower, and operational costs. This will result in a saving of about 150 billion won over the costs of operating the satellite on its own. This will let SK Telecom offer the service at an attractive price to its customers.
The two companies agreed to constantly cooperate in the joint technological development, marketing, and free use of both company’s patents, as well as crossing investments in the satellite DMB Corporation. They also reached an agreement to jointly develop overseas operations in international markets such as china.
In February of this year in order to develop this contract with MBCO of Japan, SK Telecom formed a ’Satellite Purchase Task Force Team’ that consisted of legal experts, satellite technicians, and control tower experts. The companies have met to negotiate fifteen times, since starting the first negotiation on March 15th.
SK Telecom also revealed that in order to form a consortium, the company is under negotiation with DMB service-related companies, including broadcasters, car manufacturers, equipment manufacturers, distribution companies, program providers and telecom operators. The company plans to complete the consortium by October of this year.
In addition, the company will launch a satellite DMB corporation sometime this year, and launch the satellite by January of 2004. Revealing a series of plans, SK Telecom disclosed its strong will to obtain a satellite DMB business license.
Sang Gil Lee, head of SK Telecom’s PMSB Business Group, said " Under the agreement for joint use of a satellite, and satellite frequency adjustment between the Korean and Japanese governments, the most important pending issues in the Satellite DMB business have been settled. We will put forth our best efforts to successfully launch the world’s first Satellite DMB."
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.
With respect to the equipment development sector, the ’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 a variety of functional and cost-effective terminals under development. 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.
The satellite DMB business has great effect on related industries because it is a facilities-based project. According to sources released by the Korean Society for Journalism and Communication Studies, from 2003 to 2012 the DMB business will generate 9 trillion won from production, 6.3 trillion of value-added service, and create 185 thousand jobs. This is causing high expectations in the Korean 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.