Telecoms Market Saturation
Korean telecom operators are adopting aggressive marketing strategies to take the lead in the mobile TV market. This is because retaining existing customers is more important than attracting new ones in the already saturated market.
“Local mobile carriers, which have been engaged only in wired broadband Internet and mobile services, have realized the importance of combination products for Internet Protocol TV,” said an industry insider, adding, “They are now trying to keep their customers by means of such products based on mobile TV.”
The local mobile TV market is still in the growth stage. The number of mobile TV service subscribers to the three telecoms companies in the country is approximately 6.5 million. Given that the number of mobile phones in use is close to 54 million, the growth potential of the market is truly huge.
Mobile TV is a medium that should be used on a smartphone. As such, it can create greater opportunities to mobile carriers. In addition, mobile TV is an optimal profit source for companies that provide LTE-based wireless Internet services faster than wired Internet services. An increase in the number of mobile TV subscribers inevitably entails an increase in wireless Internet usage.