South Korea Telecoms Industry Report 2020-2025 and the Impact of COVID-19
DUBLIN, Sept. 3, 2020 /PRNewswire/ -- The "South Korea Telecoms Industry Report - 2020-2025" report has been added to ResearchAndMarkets.com's offering.
This report provides analyses of revenue and market forecasts as well as statistics of the South Korea telecoms industry including market sizing, 5-year forecasts, market insights, key telecom trends and 5G.
Reasons to Buy
The report includes a comprehensive review of the South Korean market dynamics, market sizing, market forecasts, analysis, insights and key trends.
South Korea Telecoms Industry Report at a Glance
The Capex from South Korean operators is cyclical with mobile rollout leading to investments in line with the operators' top-line growth. Capex investments peaked between 2012 and 2014 while all three operators built their respective 4G mobile network. Capex investments increased again in 2019 and will continue through to 2025, as mobile operators invest in 5G. South Korea sees 5G as the backbone of a wide range of technological advances including autonomous vehicles, smart cities and Internet of Things. All three mobile operators launched 5G services in 2019 and as of April 2020, over 10% of mobile users are already using 5G. The Capex to GDP ratio spiked between 2012 and 2014 and started to slide downwards and growing from 2019 onwards.
The publisher projects an increase in Capex spend throughout 2020 alone by installing more 5G base stations across all cities, ramping up South Korea's 5G rollout nationwide and consolidating its 5G network leadership in terms of subscribers and availability in the country.
The South Korean three-player mobile market is a remarkably stable market, however with mobile revenue pressure, all operators are broadening their range of services from e-commerce (SK Telecom), smart home (LG Uplus) to real estate (KT) and digital payments.
Between 2014 and 2019, both SK Telecom lost revenue and EBITDA share to LG Uplus over the last six years, KT heals its revenue share steady but managed to take share from the telecom market EBITDA pool.
Mobile Subscribers and Revenue
Average annual mobile revenue growth was lower (-.04%) than mobile service subscriptions growth (3.9%) during the period 2014-2019, highlighting the structural challenges faced by mobile operators. Declining voice & SMS revenue only partially offset by wireless data monetisation is putting pressure on ARPU, compounded by bundling discounts to stem churn.
IoT connections is a major growth driver for mobile operators, a slowdown in mobile subscriptions growth will put long term pressure, dialling up competition for the three mobile operators fighting for fewer new customers.
According to our benchmark study of mobile data pricing, South Korea had among the biggest cost reduction per GB over the last 3 years, while India has the lowest rate in the world with just a few cents per GB.
The South Korean mobile market rapidly transformed from a voice and SMS to a mobile Internet-dominated market. With a continued drive to convert smartphones users to digital shoppers and therefore increasing mobile operators' consumers share of wallet. Mobile operators are increasing market segmentation and deliver innovative offerings targeting households with digital services such as music, video streaming, digital payments and bundles of other services such as home automation, IPTV and fixed broadband.
Broadband Subscribers - FTTH Push to Gigabit Speeds
After over 20 years of investments in fibre infrastructure, South Korea boasts one of the highest FTTH penetration in the world as well as one of the most advanced, consumer broadband products offering speeds up to 10Gbps. Most people use above 100Mbps packages which are mostly bundled with mobile services by the three dominant players, KT, SK Telecom and LG Uplus.
Fixed broadband penetration is forecasted to grow modestly as South Korea's investments in full-fibre networks are now reaching maturity with affordable packages and increased broadband household penetration growing towards saturation.
Thematics - Telecoms Infrastructure / 5G / M&A / Infrastructure
Infrastructure funds, pension funds and government funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure.
Investment funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure. This report outlines some real market examples of how investors view and value these investments with real industry examples and EV/EBITDA comparatives and benchmarks.
Our South Korea Telecoms Industry Report transactions database analysis highlights the dearth of inbound (domestic) transactions in the South Korea telecommunications services market, with the largest transactions from SK Telcom and LG Uplus bulking up their fixed broadband and IPTV business units and consolidating their position by acquiring smaller operators. Most other transactions are expected in the data centre, IoT and cloud computing sector with SK Telcom and LG Uplus investing in e-Commerce and enterprise services.
The arrival of 4G moved the Internet off our desktops into our palms and pockets, 5G could transform the network from something we carry around to something taking us around either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles), the 5G outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, investments required and timeline.
Key Topics Covered
1 Key Statistics
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