South Korea Telecommunications Report Q3 2011
South Korea s three mobile operators - SK Telecom, KT and LG Uplus - have released their latest operational data for the quarter ended March ----. This has enabled BMI to review and update, where appropriate, forecasts for all sectors in this report. ...Furthermore, mobile virtual network operators are on track to be introduced in H---, and we expect their entry to help lower tariff rates and capture niche and untapped markets. The Korea Communications Commission (KCC) has recognised the potential of near field communications and has roped in stakeholders - mobile operators, handset equipment manufacturers, financial institutions, billing service providers and government organisations - to form the Grand NFC Korea Alliance. We believe that this move to bring rivals onboard is largely to eliminate the issue of different technological standards that are not compatible, and to ensure the entire industry moves in the same direction while the market is still in its infancy. ...Meanwhile, we see disinflation taking hold in South Korea as headline consumer price inflation (CPI) eased to -.- y-o-y in May from -.- in April, the second straight month of deceleration. We expect inflationary pressures easing gradually in the coming months, which should translate to the KCC allaying pressure on South Korean mobile operators to reduce tariff rates.
The gloomier outlook appears to reflect rising recession fears and low inflation expectations.