A KT employee checks out a hybrid TV service dubbed “Qook TV-Skylife.” The service is the result of a partnership between KT and Skylife and a combination of Internet-based TV and digital satellite broadcasting.
/ Courtesy of KT |
By Kim Yoo-chul
Staff Reporter
KT, South Korea's biggest fixed-line Internet operator, is hoping to eat up more shares in the nation's saturated telecommunication industry by pushing for a two-tier strategy introducing bundled services that offer cheaper rates and striking strategic tie-up with a carmaker over a wireless Internet service.
KT officials say the separate moves are aimed at diversifying its client base from its traditional focus on general customers to big companies. They added that the strategy has paid off since the company's merger with mobile unit KTF.
With Skylife, the telecom giant has recently launched a hybrid service dubbed as "Qook TV-Skylife," combining Internet-based TV and digital satellite broadcasting.
The partnership came at a time when the first new media product combining video-on-demand (VOD) of IPTV and various channels of digital satellite broadcasting is to be introduced in South Korea.
The new product combines 170 channels of Skylife services and 65,000 VOD programs of KT's Qook TV. The rate is known to be 21,600 won per month for the premium service with a three-year contract, 18,000 won for standard service and 14,400 won for economy service.
"Through the package, subscribers can enjoy differentiated services. It also has higher efficiency in terms of cost as this product doesn't require any additional investment on equipment except replacing a set-top box," a KT spokesman, Kim Young-wan, said Wednesday, adding the company has already secured over 750,000 subscribers as of the end of August.
Services combining IPTV, cable television, and satellite broadcasting have already been introduced in the European and the North American markets.
The successful launch of this product is pushing other telecom service providers including SK Telecom and LG Dacom to possibly follow similar steps.
As for the other strategy, KT and South Korea's Hyundai-Kia Automotive Group are jointly planning to launch vehicles equipped with wireless Internet service by 2012.
The new "WiBro" feature provided by KT's WiBro service will allow drivers to have high-speed access to a variety of services, including traffic updates, route assistance, weather forecasts and entertainment activities.
"Amid the industry's convergence moves, putting information technology to consumer electronics-related products has become an essential for the technology of future cars. Such technological collaboration mainly focuses on passenger safety and building solid customer relations," according to the company spokesman.
As of the end of the second quarter, KT had 218,000 WiBro subscribers, up 8.2 percent year-on-year, and 14.71 million mobile customers, up 3.9 percent.
As for an additional strategy to get more customers, KT has also formed partnerships with local banks and financial institutions. In collaboration with Kookmin Bank and Shinhan Card, KT customers are given good interest rates on savings accounts and credit loans.
The consumer-friendly corporate policy has well been in line with its greater care toward corporate identity.
KT has adopted "Olleh" as part of its corporate identity, following the company's merger with mobile unit KTF.
Olleh is "hello" spelled backward but also signifies five directions for the company as each of the letters has a meaning. The "O" stands for outstanding performance, the "L" stands for leading IT, the second "L" for liberal culture, the "E" stands for esteemed company, and the "H" stands for happy customers.
In a back-up move to push for the new identity, the management team has been renamed the "Olleh Management Committee" as it will oversee the implementation of the main tasks.
In the first half of this year, KT saw its revenues and net income go up, boosted by the contribution of mobile and wireless revenues, as well as the merger with KTF.
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