SK Telecom stumbles in Q3 as regulation hits growth

first_img ICT business gains fuel SKT revenue HomeAsiaNews SK Telecom stumbles in Q3 as regulation hits growth activation feelower interconnection feesQ3 resultsSK TelecomSouth Korea Previous ArticleDefining the mobile broadband vision for 2020Next ArticleTelenor appoints law firm to probe Uzbek activities South Korea’s SK Telecom (SKT) reported a sharp fall in Q3 net income as well as a decline in revenue as it felt the impact of the government’s move to eliminate activation fees and a cut in interconnection fees.The operator, with a 49 per cent market share, saw its net income for the quarter ending 30 September decline 28 per cent to KRW381.8 billion ($335 million) year-on-year and EBITDA fall 1 per cent to KRW1.25 trillion. The company said its profit was also impacted by lower equity gains from SK Hynix.With network interconnection revenue dropping 22 per cent from a year ago, its revenue fell 2.4 per cent to KRW4.261 trillion. Mobile revenue also fell during the quarter, off 2.8 per cent to KRW2.74 trillion, due to more subscribers choosing mobile fee discounts based on their contracts, the company said.On the positive side, it added almost 2.3 million 4G subscribers over the past year, with 4G customers accounting for almost 65 per cent (18.46 million) of its total use base of 28.4 million – up from 57 per cent in Q3 2014.ARPU edged up marginally from KRW36,417 ($31.97) a year ago to KRW36,729 ($32.24) in Q3 2015. Its customer churn rate remained at 1.4 per cent – the same level as a year ago. It also added more than one million smartphone users over the past year, taking its total to 20.3 million.Capex for the period fell 32 per cent to KRW400 billion, and marketing expenses declined 9.2 per cent to KRW749 billion and represented 23.8 per cent of operating revenue, down from 25.2 per cent a year ago.To strengthen its media platform, the company said it plans to integrate the media-related capabilities of its subsidiaries. Its first move is to expand its investment in content production by merging SK Broadband and CJ Hellovision as well as strengthening its partnership and cooperation with CJ Corp.$440M cable stake acquisitionSK Telecom today announced it will acquire CJ O Shopping’s 30 per cent stake in CJ Hellovision – South Korea’s largest cable TV company – for KRW500 billion ($440 million). CJ O Shopping’s remaining stake (23.9 per cent) in CJ Hellovision can be later acquired by SKT through call and put options between the two firms.SKT said it will also boost CJ’s Corp’s paid-in capital by KRW150 billion and the firms will create two KRW50 billion funds to boost the media and ICT industries’ ecosystem. Joseph Waring Author AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 02 NOV 2015 center_img Korea operators make rural 5G pledge Related SKT tipped for Amazon streaming move Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he… Read more Tags Asia last_img read more

Alcatel plans new device launches at MWC

first_img LIVE FROM CES 2018, LAS VEGAS: TCL Communication revealed plans to launch a new global portfolio of Alcatel smartphones at Mobile World Congress, with a focus on delivering high end specs at affordable prices.Brad Molen, TCL’s senior manager of communications for Alcatel in North America, told Mobile World Live the company will debut three new smartphone lines at the show: the 5 Series, 3 Series and 1 Series.Molen was tight lipped on the exact specs of the devices, but highlighted phones in all three line-ups will offer 18:9-ratio displays and fingerprint sensors on the rear casing. All devices in the 5 Series will be priced at under $300, the 3 Series less than $200 and 1 Series units less than $100, he added.The goal of the new portfolio is to make flagship-style design and features more broadly accessible.“What we’re hoping to do in 2018 is put a refocus on product design and streamlining our portfolio,” Molen explained: “So instead of having all these different series and different names just trying to keep it simple.”Molen said more device details, including colour variations, will be unveiled at MWC.Jason Gerdon, a senior manager of communications at TCL, said Alcatel will continue to offer devices through existing partners, but stopped short of revealing which operators will offer the new models. Previous ArticleTCL wants to push BlackBerry beyond enterpriseNext ArticleVerizon CTO vows to beat AT&T to 5G HomeDevicesNews Alcatel plans new device launches at MWC Related AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 11 JAN 2018 Researchers crack secret to self-repairing screens Diana is Mobile World Live’s US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only… Read more Diana Goovaerts center_img Author Devices TCL eyes value sector with CES duo, teases 2021 range Earwear, wearable bands set for 2021 boom Tags AlcateldevicesTCLlast_img read more