Qualcomm Inc (QCOM)

[khemara_qc]

Mobile to Capture 74% of Telecom Biz by 2008



By Kim Tae-gyu
Staff Reporter




Wireless services are forecast to account for about three-fourths of the overall telecom market of Korea in five years, according to a market research firm.
IDC Korea on Sunday projected the nation¡¯s mobile telephony market will expand about 20 percent per annum to 32.3 trillion won by 2008 from last year¡¯s 13.2 trillion won.

In comparison to the double-digit growth of the mobile sector, IDC Korea expected the land-line market to remain idle over the coming years, maintaining just 11.1 trillion won in 2008 from 10.8 trillion won in 2003.

This indicates the sales gap between the wire line and wireless sectors will widen to 21 trillion won in 2008 from last year¡¯s 2.4 trillion won.

As a result, the mobile segment is expected to carve out up to 74 percent of the Korean telecom market in 2008 at the expense of the fixed-line area, the company said in a statement.

``Voice call growth hit saturation marks both in the wireless and fixed-line markets. But unlike the fixed-line, wireless has an alternative revenue stream of mobile contents and added services,¡¯¡¯ IDC Korea researcher Ha Ki-seok said.

Ha forecast wireless operators¡¯ revenue from non-voice services will emerge as a new growth engine, by expanding 42 percent on average over the next five years.

He also said the ratio of the newfound cash cow against overall wireless turnover will soar to 32 percent in 2008 from last year¡¯s 13 percent.

``With the number of new subscribers expected to remain flat, mobile carriers will focus on locking in the existing customers by providing highly-customized services,¡¯¡¯ Ha said.

The researcher said convergence services will eventually catch on, which will enable mobile clients to savor various bundling features via a single wireless device.



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06-13-2004 20:12

http://times.hankooki.com/lpage/tech/200406/kt2004061320112011790.htm