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Press Release
The company now is a leader in the growth of the Korean mobile communications industry, and the national economy.
The Korean mobile communications industry has grown remarkably. It now represents 6% of the gross domestic product.
Twenty years after its founding in 1984, SK Telecom has grown into one of the world’s leading telecommunication service providers, with 9.5 trillion won in sales. Now, SK Telecom is taking on the task of moving forward to the second stage of growth by exploring new growth engines in the convergent and ubiquitous environment of today.
SK Telecom, Korea’s leading company in the mobile communications service area, reached the 20th year of its existence on March 29th.
The time line of SK Telecom serves as a landmark in the history of Korean information and communications. Over the last 20 years, the Korean mobile communications industry has reached the world-class level in the fields of car-phone service, display type radio paging service, mobile phone service, and terminal and system manufacturing.
SK Telecom’s 20 year history has great significance when the company considers the mobile communications industry’s ripple effect on the entire IT industry that is serving as an economic growth engine in the nation.
SK Telecom was established on March 29, 1984 with the name ’Korea Mobile Telecommunications Services Co., Ltd.’(KMTS). The initial aim was to effectively manage car phone services, and facilitate the users’ convenience. The beginning of SK Telecom was somewhat humble. At that time, KMTS rented a small office in the Kwang Jang Telephone Station Building, and was launched as a consigner of Korea Telecommunications (presently KT) with an initial capital of 250 million Korean won, and a total of 32 employees.
SK Telecom initiated car phone services on April 2, 1984. The company recorded 390 million won in sales and had 2,658 subscribers at the end of 1984. Since then, SK Telecom has grown to become one of world’s leading telecommunication service providers. In 2003, SK Telecom achieved 9.5 trillion won in sales, and reached 18.3 million cellular subscribers. Furthermore, the company has a variety of world’s first records in regard to mobile communications services.
The company changed its name to Korea Mobile Telecommunications in May 1988, and the SK Group became the major shareholder of Korea Mobile Telecommunications, acquiring 23% of its equity share in July 1994. The company again changed names to SK Telecom Co., Ltd. in March 1997. SK Telecom merged with Shinsegi Telecom in January 2002.
Since the launch of car phone service in April 1984, the Korean mobile communications industry has grown to reach 34 million mobile phone subscribers. This is a penetration ratio of 72% of the total population at the end of January 2004. Korea has become a major player in the mobile communications areas that include mobile services, and terminal and system manufacturing.
In terms of contribution to the national economy, the Institute of Information Technology Assessment reported at the end of 2002, that the market size of mobile communications services and equipment reached about 40.4 trillion won. This constituted 6% of the total gross domestic product (GDP)
In particular, mobile communications-related industries have led the domestic economy, and greatly contributed to overcoming the national economic stagnation that occurred after the IMF bailout. During this period, SK Telecom invested 1.5 trillion won annually in mobile communications facilities. This has led to further development of a national IT industry, and the booming of our domestic economy.
As a result, Korea has three mobile phone manufacturers out of the world’s top ten mobile phone makers. The three are Samsung Electronics, LG Electronics, and Pantech & Curitel. In addition to the domestic market, Korea became a major exporter of telecom systems and equipment. Previously, the Korean telecom market depended on American, Japanese, and European telecom equipment manufacturers.
The history of the remarkable growth in the Korean mobile communications industry is exactly consistent with that of SK Telecom: Car phone service was launched in 1984, and display type radio paging service was introduced in March 1986. Mobile phone service began in July 1988, and CDMA digital mobile phone service was launched in January 1996. This led to the introduction of synchronized IMT2000 service in January 2002.
Thanks to the continued innovations in services as well as technology, SK Telecom reached one million cellular subscribers in January 1995. This was within 11 years after the launch of car phone services. It reached five million subscribers in May 1998, and by December 1999, the number of cellular subscribers exceeded ten million. SK Telecom achieved an 18.3 million subscriber base as of mid-February 2004, and will soon secure a 20 million subscriber base.
This outstanding growth in the subscriber base can be attributed to the excellence of network quality, the service segmentation marketing strategy focused on customers’ age and sex, as well as increasing management competitiveness in effectively responding to intensifying competition with the three PCS providers who launched their commercial service in October 1997.
In a segmented marketing approach, the company introduced new products such as ’ting’ targeted at teenagers, ’UTO’, aimed at professional customers from 25 to 35, and ’CARA’, exclusively tailored to women. This unique customized marketing strategy was a great sensation in the domestic market, and drew keen attention from the world telecom market. In accomplishing these things, SK Telecom has maintained first place in terms of customer loyalty, as well as brand recognition in the market.
With respect to network quality, SK Telecom launched the world’s first CDMA-based cellular service on January 1, 1996. The company had carried out R&D on CDMA systems in a joint effort with the Electronic Telecommunications Research Institute, since 1992. This let the company introduce a more advanced network for new cellular services, as well as improve its call quality. SK Telecom has won first place in a variety of surveys regarding call quality.
In addition, the company introduced CDMA2000 1xEV-DO services, synchronized IMT2000 services, for the first time in the world, on January 28, 2002 in Incheon. This service opened a mobile communications multimedia era in which customers can receive mobile broadcasting on a real-time basis.
SK Telecom successfully launched the world’s first satellite for digital mobile broadcasting (DMB) service (named "Araehanbyul"), on March 13, 2004. The company plans to launch commercial DMB services by the latter half of 2004. The introduction of this service will accelerate the convergence of the telecommunications and broadcasting sectors.
In terms of wireless Internet services, SK Telecom has been offering a wide range of data services via cellular handsets through the ’NATE’ wired and wireless integrated multimedia service. This includes daily use information, commercial transactions, entertainment, finance, broadcasting, navigation, etc. The company has been pioneering a total communication service that allows customers to enjoy a variety of beneficial information services, as well as voice communications anytime and anywhere. This has led to a new paradigm in the consumers’ daily lives.
SK Telecom has been actively promoting its overseas operations. In May 1995, the company invested in Mongolia’s second largest mobile communications carrier, Skytel, through an investment in-kind arrangement. In July of the same year, SK Telecom commenced mobile phone service in Mongolia. Furthermore, the company gave Vietnam its very own commercial CDMA cellular service called "S-Fone", starting in July 2003.
Besides direct participation in the overseas market, SK Telecom has been exporting its cutting-edge wireless Internet solutions, platforms and content, to worldwide telecom operators in Israel, Taiwan, and Singapore. In addition, on February 6, 2004, the company established a joint venture company named "UNISK" with China Unicom, China’s second largest CDMA operator. The purpose of this venture is to launch a wireless Internet business in China.
On the 20th anniversary of its foundation, SK Telecom’s task is to spring forward to a second stage, by exploring new growth engines in a convergent and ubiquitous environment. This becomes more important because the growth in the voice communications market is getting slower.
Mindful of this, the company has been preparing for the launch of new businesses such as satellite DMB, digital home network, and 2.3GHz portable Internet. To successfully deploy these businesses, SK Telecom will further strengthen cooperative ties with related business partners in each industry. This includes strategic affiliation with financial entities involved in the convergence of telecommunications and finance. SK Telecom will establish "Win-Win Partnerships" with relevant business operators in order to fulfill its role as a leading company, and ensure an increasing growth rate in new business.
SK Telecom will continue to form strategic alliances with global telecom operators that build cooperative relations for marketing and technology in the entire field of mobile communications. This effort, reinforced with a variety of new business models based on our cutting-edge wireless Internet solutions and technology, will greatly contribute to our advancement into the international market.
To celebrate our 20th anniversary, over 2,500 SK Telecom employees, that included president Shin Bae Kim, held a ceremony at COEX Convention Hall in Samsung-dong, Seoul, on March 29th. At the ceremony, SK Telecom reaffirmed its strong will to rapidly move forward in the next ten years that follow ten years as a private company, and ten years as a public company.
The time line of SK Telecom serves as a landmark in the history of Korean information and communications. Over the last 20 years, the Korean mobile communications industry has reached the world-class level in the fields of car-phone service, display type radio paging service, mobile phone service, and terminal and system manufacturing.
SK Telecom’s 20 year history has great significance when the company considers the mobile communications industry’s ripple effect on the entire IT industry that is serving as an economic growth engine in the nation.
SK Telecom was established on March 29, 1984 with the name ’Korea Mobile Telecommunications Services Co., Ltd.’(KMTS). The initial aim was to effectively manage car phone services, and facilitate the users’ convenience. The beginning of SK Telecom was somewhat humble. At that time, KMTS rented a small office in the Kwang Jang Telephone Station Building, and was launched as a consigner of Korea Telecommunications (presently KT) with an initial capital of 250 million Korean won, and a total of 32 employees.
SK Telecom initiated car phone services on April 2, 1984. The company recorded 390 million won in sales and had 2,658 subscribers at the end of 1984. Since then, SK Telecom has grown to become one of world’s leading telecommunication service providers. In 2003, SK Telecom achieved 9.5 trillion won in sales, and reached 18.3 million cellular subscribers. Furthermore, the company has a variety of world’s first records in regard to mobile communications services.
The company changed its name to Korea Mobile Telecommunications in May 1988, and the SK Group became the major shareholder of Korea Mobile Telecommunications, acquiring 23% of its equity share in July 1994. The company again changed names to SK Telecom Co., Ltd. in March 1997. SK Telecom merged with Shinsegi Telecom in January 2002.
Since the launch of car phone service in April 1984, the Korean mobile communications industry has grown to reach 34 million mobile phone subscribers. This is a penetration ratio of 72% of the total population at the end of January 2004. Korea has become a major player in the mobile communications areas that include mobile services, and terminal and system manufacturing.
In terms of contribution to the national economy, the Institute of Information Technology Assessment reported at the end of 2002, that the market size of mobile communications services and equipment reached about 40.4 trillion won. This constituted 6% of the total gross domestic product (GDP)
In particular, mobile communications-related industries have led the domestic economy, and greatly contributed to overcoming the national economic stagnation that occurred after the IMF bailout. During this period, SK Telecom invested 1.5 trillion won annually in mobile communications facilities. This has led to further development of a national IT industry, and the booming of our domestic economy.
As a result, Korea has three mobile phone manufacturers out of the world’s top ten mobile phone makers. The three are Samsung Electronics, LG Electronics, and Pantech & Curitel. In addition to the domestic market, Korea became a major exporter of telecom systems and equipment. Previously, the Korean telecom market depended on American, Japanese, and European telecom equipment manufacturers.
The history of the remarkable growth in the Korean mobile communications industry is exactly consistent with that of SK Telecom: Car phone service was launched in 1984, and display type radio paging service was introduced in March 1986. Mobile phone service began in July 1988, and CDMA digital mobile phone service was launched in January 1996. This led to the introduction of synchronized IMT2000 service in January 2002.
Thanks to the continued innovations in services as well as technology, SK Telecom reached one million cellular subscribers in January 1995. This was within 11 years after the launch of car phone services. It reached five million subscribers in May 1998, and by December 1999, the number of cellular subscribers exceeded ten million. SK Telecom achieved an 18.3 million subscriber base as of mid-February 2004, and will soon secure a 20 million subscriber base.
This outstanding growth in the subscriber base can be attributed to the excellence of network quality, the service segmentation marketing strategy focused on customers’ age and sex, as well as increasing management competitiveness in effectively responding to intensifying competition with the three PCS providers who launched their commercial service in October 1997.
In a segmented marketing approach, the company introduced new products such as ’ting’ targeted at teenagers, ’UTO’, aimed at professional customers from 25 to 35, and ’CARA’, exclusively tailored to women. This unique customized marketing strategy was a great sensation in the domestic market, and drew keen attention from the world telecom market. In accomplishing these things, SK Telecom has maintained first place in terms of customer loyalty, as well as brand recognition in the market.
With respect to network quality, SK Telecom launched the world’s first CDMA-based cellular service on January 1, 1996. The company had carried out R&D on CDMA systems in a joint effort with the Electronic Telecommunications Research Institute, since 1992. This let the company introduce a more advanced network for new cellular services, as well as improve its call quality. SK Telecom has won first place in a variety of surveys regarding call quality.
In addition, the company introduced CDMA2000 1xEV-DO services, synchronized IMT2000 services, for the first time in the world, on January 28, 2002 in Incheon. This service opened a mobile communications multimedia era in which customers can receive mobile broadcasting on a real-time basis.
SK Telecom successfully launched the world’s first satellite for digital mobile broadcasting (DMB) service (named "Araehanbyul"), on March 13, 2004. The company plans to launch commercial DMB services by the latter half of 2004. The introduction of this service will accelerate the convergence of the telecommunications and broadcasting sectors.
In terms of wireless Internet services, SK Telecom has been offering a wide range of data services via cellular handsets through the ’NATE’ wired and wireless integrated multimedia service. This includes daily use information, commercial transactions, entertainment, finance, broadcasting, navigation, etc. The company has been pioneering a total communication service that allows customers to enjoy a variety of beneficial information services, as well as voice communications anytime and anywhere. This has led to a new paradigm in the consumers’ daily lives.
SK Telecom has been actively promoting its overseas operations. In May 1995, the company invested in Mongolia’s second largest mobile communications carrier, Skytel, through an investment in-kind arrangement. In July of the same year, SK Telecom commenced mobile phone service in Mongolia. Furthermore, the company gave Vietnam its very own commercial CDMA cellular service called "S-Fone", starting in July 2003.
Besides direct participation in the overseas market, SK Telecom has been exporting its cutting-edge wireless Internet solutions, platforms and content, to worldwide telecom operators in Israel, Taiwan, and Singapore. In addition, on February 6, 2004, the company established a joint venture company named "UNISK" with China Unicom, China’s second largest CDMA operator. The purpose of this venture is to launch a wireless Internet business in China.
On the 20th anniversary of its foundation, SK Telecom’s task is to spring forward to a second stage, by exploring new growth engines in a convergent and ubiquitous environment. This becomes more important because the growth in the voice communications market is getting slower.
Mindful of this, the company has been preparing for the launch of new businesses such as satellite DMB, digital home network, and 2.3GHz portable Internet. To successfully deploy these businesses, SK Telecom will further strengthen cooperative ties with related business partners in each industry. This includes strategic affiliation with financial entities involved in the convergence of telecommunications and finance. SK Telecom will establish "Win-Win Partnerships" with relevant business operators in order to fulfill its role as a leading company, and ensure an increasing growth rate in new business.
SK Telecom will continue to form strategic alliances with global telecom operators that build cooperative relations for marketing and technology in the entire field of mobile communications. This effort, reinforced with a variety of new business models based on our cutting-edge wireless Internet solutions and technology, will greatly contribute to our advancement into the international market.
To celebrate our 20th anniversary, over 2,500 SK Telecom employees, that included president Shin Bae Kim, held a ceremony at COEX Convention Hall in Samsung-dong, Seoul, on March 29th. At the ceremony, SK Telecom reaffirmed its strong will to rapidly move forward in the next ten years that follow ten years as a private company, and ten years as a public company.