Three-way War
As the market for the Internet of Things (IoT), in which it is possible to control home appliances and home security systems via smartphones is growing rapidly, the nation's three mobile carriers have started to compete with each other for market share.
Three carriers are increasing their market share with special strategies to take up new areas. SK Telecom is focusing on growing the number of smart home devices led by small and mid-sized hardware manufacturers. KT is trying to make contact with large consumer electronics makers. LG U+ continues its partnerships with small and medium-sized manufacturers, in addition to its partnership with LG Electronics.
According to industry sources on Aug. 24, LG U+ is targeting consumers with the launch of a smart home service called IoT@home. With the mobile carrier actively seeking to expand the B2C market, there are visible signs of a major business achievement. Around 100,000 people have subscribed to the IoT@home service, only three weeks after its release in July.
SKT and KT are also working to find partner companies rather than improving their brand image. The nation's largest carrier is concentrating on building an IoT ecosystem in partnership with various types of manufacturers from small and mid-sized to large companies. The carrier recently signed an agreement with Jung Woo Construction Company for the first smart home-authorized apartment to create a smart home platform and an IoT ecosystem that encompass apartments, home appliances, and household items.
KT is working to obtain supplies from large businesses. The company is sketching out a blueprint with more weight placed on the B2B business instead of the B2C business. The second-largest carrier is currently considering a measure to utilize retailers and cell phone stores under direct management, where the company can control the sale of IoT products. This consideration can be interpreted to mean that the carrier intends to tout its strong points in distribution by decreasing the cost needed for the distribution of consumer electronics and securing a new business that runs retail stores for mobile telecommunications through a measure to bring the distribution of home appliances made by large businesses into the area of telecommunications products.
KT is also said to be considering a project of parceling out apartments equipped with an IoT system in partnership with a large builder, utilizing its affiliated construction company. It is also planning to showcase the same IoT platform as that of SKT and LG U+ soon.