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

China Unicom looks to IoT to drive future growth

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 AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 27 JUN 2017 Tags LIVE FROM GSMA MOBILE WORLD CONGRESS SHANGHAI 2017: China Unicom accelerated its NB-IoT rollout as it looks to the expanding range of IoT applications to drive future revenue growth and make up for an expected flattening in mobile traffic revenue growth.Shen Hongbo, general manager of Shanghai Unicom, said during a keynote at the GSMA’s Global Mobile IoT Summit the potential for mobile subscriber growth is low in Shanghai, and while it is seeing continued growth in mobile traffic, which is driving revenue this year, the growth rate is expected to flatten starting next year.“We’re seeing a bottleneck in [subscriber] growth in Shanghai, and we don’t see a lot more income being generated from traffic. More revenue will be generated from IoT, converged businesses as well as content-related operations. We will have to rely on IoT to grow our business,” he said.Shen expects the IoT market to be driven by low-power, low-speed data collection applications like smart metering. Unicom estimates China’s low-power segment at three billion connections while the high-speed segment will be less than 200 million.“So we’re first looking at the low-power, extended coverage market. This will be our priority,” he said.China Unicom, Shanghai Unicom’s parent company, selected NB-IoT because it was the more mature technology in 2016 when it decided on an LPWA technology, he said, adding it is “always safe to go with the flow”, given many operators are opting for NB-IoT running on the 900MHz band.Its NB-IoT network covering all of Shanghai went live on 5 May.In addition to Shanghai, China Unicom launched NB-IoT in Guangzhou, Shenzhen and Fuzhou, with applications including smart parking, smart fire sensors and smart meter services. Author HomeMWC Shanghai 2017 China Unicom looks to IoT to drive future growth China UnicomNB-IoT Previous ArticleInnovation takes centre stage at MWCS 17Next ArticleEricsson to focus on telco clients Joseph Waring read more