By Kang Seung-woo
SK Broadband, the internet-based service subsidiary of SK Telecom, plans to spend 5 trillion won over the next five years to attract more subscribers and boost sales, its CEO said Tuesday.
“We have set our sights on reaching 27 million subscribers and 4.5 trillion won in sales by 2021,” said CEO Lee Hyung-hee in a press conference at its headquarters in Seoul.
“We will try to create a new eco-system in the media industry and become the best integrated platform operator.”
According to the company, the investment will be dedicated to improving technology and building infrastructure.
Last year, SK Broadband saw its revenue increase by 7.7 percent from 2015 backed by the growth of IPTV and other businesses, with the former posting 84.4 billion won in sales _ up 33.4 percent from the previous year.
“Although some 700 billion won has been spent, which was not inconsiderable, the quality of investment was not satisfactory. In order to secure faster service and broad coverage, we are set to spend 800 billion won this year and more than 1 trillion won next year,” Lee said.
The firm will pursue a media innovation based on big data and artificial intelligence (AI), upgrade technology infrastructure and beef up home Internet of Thing (IoT) businesses.
More specifically, it will try to offer differentiated IPTV services using big data and AI algorithms, and launch its mobile media platform “oksusu” in the global market.
In terms of technology development, it will offer high dynamic range (HDR) and other high-definition technologies to improve the quality of images on IPTV and oksusu.
HDR is an image which renders brighter scenes and greater shadow details.
Moreover, it will enhance the connection between its IPTV services and SK Telecom’s NUGU, a voice-activated artificial intelligence platform that understands and processes the Korean language, while expanding its home monitoring and security services.
Meanwhile, Lee said that nothing has been decided about whether SK will reinitiate its bid to take over CJ HelloVision.
Last year, SK Telecom dropped the bid to take over the nation’s top cable TV operator after the Fair Trade Commission (FTC) refused to approve the controversial proposal.