Profile: SK Telecom Co Ltd (SKM)
18 Jul 2019
SK Telecom Co., Ltd., incorporated on April 20, 1984, provides wireless telecommunications in Korea. The Company is engaged in the commercial development and implementation of wireless and fixed-line technologies and services, as well as develop its platforms, including Internet of things (IoT) solutions, lifestyle enhancement and advanced media. The Company operates through three segments: cellular services, which include wireless voice and data transmission services, sales of wireless devices, IoT solutions platform services and lifestyle enhancement platform services; fixed-line telecommunication services, which include fixed-line telephone services, broadband Internet services, advanced media platform services (including Internet Protocol television (IPTV)) and business communications services, and other businesses, which include its commerce business, its hardware business and other operations.
The Company offers wireless voice and data transmission services are offered through its backbone networks. It has approximately 28.6 million wireless subscribers, including mobile virtual network operators (MVNO) subscribers leasing its networks. Its wireless telecommunications services are available to its subscribers receiving service under the SK Telecom brand. In addition, customers can obtain wireless telecommunications services that operate on its network from MVNOs that lease its wireless networks. It provides a voice-over-long term evolution (LTE) service, known as HD Voice service, to all of its LTE subscribers. HD Voice service is a communication service, which features voice transmission, voice-to-video call switching and digital content sharing during calls. In addition, it provides T phone service, which is available on devices running on the Google Android operating system. Its T phone service provides customers with a range of call functions, including a function to block spam calls and a function called T114 that informs customers of the phone numbers of stores, hospitals and other facilities closest in proximity to the customer's current location. There are approximately eight million subscribers to the T phone service.
The Company also offers its subscribers a range of wireless data transmissions services. The Company's messaging service allows its subscribers to send and receive text, graphic, audio and video messages. In addition, its subscribers can access a range of digital content and services through mobile applications providing music, video, gaming, news, commerce and financial services, as well as solutions that enable subscribers to access the Internet and e-mail. It offers cellular global roaming services, branded as T-Roaming service. Global roaming services allow subscribers traveling abroad to make and receive calls using their regular mobile phone numbers. In addition, it provides global roaming service to foreigners traveling to Korea. Through SK Telink, the Company also operates its MVNO business under the brand, 7Mobile. In addition, it provides interconnection service to connect its networks to domestic and international fixed-line and other wireless networks.
The Company offers various categories of wireless devices, including smartphones and basic phones, tablets, and other Internet access devices and wearable devices. The Company offers smart phones that are enabled to utilize its LTE or wideband code division multiple access (WCDMA) networks and run on various operating systems, such as Apple iPhone operating system (iOS) and Google Android. It offers tablets, which can access the Internet through its LTE or WCDMA networks and a Wireless-Fidelity (Wi-Fi) connection. In addition, it also offers T Pocket Pie devices that provide a mobile LTE connection and are capable of connecting multiple Wi-Fi enabled devices to the Internet at one time. It offers various wearable devices, including smart watches; T pet, its pet tracking device, and T kids phone-Joon. T pet devices enable pet owners to send voice messages to their pets, track their position using global positioning system (GPS) technology, as well as track and log their activity. T kids' phone-Joon is a wearable phone targeted towards children and provides calling, messaging and chat services, as well as GPS tracking capabilities.
The Company, through its IoT solutions platform, provides a home monitoring service platform for residential customers, and network access and services to support telemetry-type applications, which are characterized by machine-to-machine (M2M) wireless connections, to business customers. It offers Smart Home, which is a mobile application-based home monitoring service for residential customers. It also provides network access and customized IoT solutions to its business customers. Its M2M services support devices that are used in a range of market segments, including retail, utilities, security, automotive, agriculture and data analytics.
The Company, through lifestyle enhancement platform, provide various services for customers' lifestyles in areas, such as shopping, childcare, security, finance and education with customized content based on their personal interests. The Company provides services to its wireless service subscribers, which include Club T Kids and Petween. Club T Kids consists of a care service platform for parents through the T Kids mobile application and a community platform for kids through the T kids' phone-Joon. Through the T Kids mobile application, parents can call their children, check their location, sign up for various children's activity programs and order organic groceries. Through the T kids' phone-Joon, kids can communicate with their parents, send messages to and chat with their friends, play games and collect character badges. Through Petween, which is accessible through the Petween Website, pet owners can communicate with each other, access petcare advice from veterinarians and purchase petcare products.
The Company provides services to users, which include Deal Light and Beauty Link. Deal Light, which is accessible through the Deal Light Website and mobile application, is an online marketplace for used products in which it participates directly in the purchase and sale process and pick up the product from the seller and then verify, clean, package, process payment for, and deliver the product to, the buyer. Beauty Link, which is accessible through a mobile application, provides information about nail salons, such as location, service offerings and price, as well as customer feedback. It provides location-based services, such as T map, a navigation service, which it provides to its wireless subscribers. T map uses GPS technology to transmit driving directions, real-time traffic updates and emergency rescue assistance to wireless devices. In addition, it provides mobile phone verification services, enabling users to process mobile payment transactions. The Company offers wireless voice and data transmission services throughout Korea using digital wireless networks, consisting of its LTE network, WCDMA network, code division multiple access (CDMA) network and Wi-Fi network.
Fixed-line Telecommunication Services
The Company's fixed-line telecommunications services are provided by its subsidiaries, SK Broadband Co., Ltd. (SK Broadband) and SK Telink Co., Ltd. (SK Telink). Its fixed-line telephone services consists of local, domestic long distance, international long distance and voice over Internet Protocol (VoIP) services. It has approximately 4.7 million fixed-line telephone subscribers (including subscribers to VoIP services of SK Broadband and SK Telink). Its fixed-line telephone services are offered under the B phone brand name. SK Telink also provides international calling services under the brand name, 00700. It has approximately five million broadband Internet access subscribers. It offers IPTV services under the brand name, B tv with access to over 130 live channels, as well as video-on-demand service providing a range of media content, including recent box office movie releases, popular United States and other foreign television shows and various children's television programs. It also offers B tv UHD, which is an ultra-high definition IPTV service. It has approximately 3.5 million IPTV subscribers.
The Company offers oksusu, a mobile IPTV service that is a combination of the B tv mobile and hoppin services, and provides subscribers access to a range of media contents, including various television programs, movies and other video contents that can be downloaded to wireless devices. Oksusu subscribers have access to over 100 live television channels, a range of sports contents and popular United States and other foreign television shows, among other contents. It has approximately 4.1 million subscribers to oksusu. It offers other business communications services to its business customers, including corporations and government entities. Its business communications services include leased line solutions, Internet data center solutions and network solution services.
The Company's leased line solutions are exclusive lines that allow point-to-point connection for voice and data traffic between two or more geographically separate points. Through its Internet data center, it provides business subscribers with server-based support, including co-location, dedicated server hosting and cloud computing services. The Company's network solution service utilizes its network infrastructure and voice platform to provide 24-hour monitoring and control of its customers' networks.
The Company's commerce business consists primarily of its marketplace business and online-to-offline (O2O) commerce business operated by its subsidiary, SK Planet Co., Ltd. (SK Planet). It operates 11st, which is an online open marketplace that offers a range of products through an online and mobile platform. Individual consumers can buy an array of products, such as clothes and accessories, beauty products, groceries, baby products, books, office supplies, furniture, home goods, outdoor and sporting goods, appliances, electronics, travel packages, entertainment tickets and local deals for restaurants and other services from small- to large-sized retailers that operate mini malls on the 11st platform. It provides O2O commerce solutions under the Syrup brand name, which include Syrup Wallet, OK Cashbag by Syrup, Syrup Pay, Syrup Gifticon, Syrup Order and Syrup Table.
Syrup Wallet is a mobile wallet service that is the successor to its Smart Wallet service, which allows users to manage membership card points and payment methods, such as coupons, credit cards and gift vouchers on their mobile devices for both online and offline purchases, and provides shopping information to users in certain shopping areas using location-based technology. OK Cashbag by Syrup is a loyalty points program in terms of number of members with approximately 50,000 participating merchants and over 40 million members, which allows members to collect and redeem loyalty points at its partnering merchants and offers marketing services to such partnering merchants. Syrup Pay is a payment service through which users can register their credit card for payments on online and mobile purchases, including through 11st. Syrup Gifticon is an online and mobile gift exchange and delivery service. Syrup Order is a food ordering service that allows users to place and pay for orders at restaurants in advance. Syrup Table is a location-based restaurant discovery service that provides users with information about nearby restaurants.
The Company manufactures projection display devices, audio devices and agent machines through its hardware business. It offers projection display devices under the brand name, UO Smart Beam Laser. The UO Smart Beam Laser is a pico projector that uses laser diodes to deliver images with a liquid crystal on silicon (LCOS)-based engine and is compatible with a range of computers and mobile devices. It offers audio devices under the brand name, Astell&Kern that are manufactured by its subsidiary, Iriver Limited (Iriver). It has co-developed educational smart robots, Atti and Albert, as a learning tool for young children with interactive games and educational content. It has also developed a coding training program utilizing its smart robots to teach children how to develop software. It provides smart robots to various countries across the globe, including Spain, France, China, Brazil and Colombia.
The Company offers a portal service under its Nate brand name through SK Communications Co., Ltd. (SK Communications). Nate can be accessed through its Website, www.nate.com, or through its mobile application. Nate offers a range of content and services, including Nate Search, which is an Internet search engine; Nate News, which provides a library of articles about current events, sports, entertainment and culture, and Nate Pann, which is a user-generated content service, as well as access to free e-mail accounts through Nate Mail. It also operate a mobile application marketplace, T Store. In addition, it operates a security and network surveillance business through Neosnetworks, a provider of residential and small business electronic security and other related alarm monitoring services.
The Company competes with KT Corporation, LG Uplus Corp., Gmarket, Auction, Interpark, Coupang, Ticket Monster, Wemakeprice, SSG.com, Lotte.com, CJ O Shopping, GS Homeshopping, Hyundai Homeshopping, Naver, Kakao Corp., Amazon Video and Netflix.
SK Telecom Co Ltd
SK T Tower, 65, Eulji-ro, Jung-g