Satellite DMB Business Plan

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Satellite DMB Business Plan
November 2003
2
?. Service Outline
?. Business Environment
1. Service Concept 2. Network Structure
3. Mobile Receiver
?. Business Plan
?. Conclusion
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?. Service Outline
1. Service Concept
Satellite DMB (Satellite Digital Multimedia
Broadcasting)
Completely new service which enables the user to
enjoy the multi-channel, multi-media broadcasting
any place any time via personalized mobile
receiver or vehicle receiver
Mobility

• No spatial restriction through mobile phone
• (more than 150Km/h)

Personal

• Personalized Media Palm TV, Personalized
  broadcasting

New Media

• Easy access to various contents (Video, Audio,
  Data etc.)
• Able to use as a mobile phone, wireless internet
  devices
• and more via device convergence

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?. Service Outline
2. Network Structure
Satellite
( East longitude 144 ?)
Ku-Band 12.21412.239GHz
Gap Filler
Ku-Band 13.82413.883GHz
S-band 2.630 2.655GHz
S-band
Contents
Satellite DMB Broadcasting Center
Program Provider
Vehicle Receiver
Mobile Receiver
Terminal
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?. Service Outline
3. Mobile Receiver
Car built-in
Mobile phone-combined
Maximize customers convenience through diverse
receivable handset support
PDA-combined
Portable
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?. Service Outline
?. Business Environment
?. Business Plan
1. Competitive Environment 2. Market Outlook
?. Conclusion
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?. Business Environment
1. Competitive Environment
Content
Platform
Fixed Type
Portable Type
Personalized Type
Satellite DMB
TV Broad- casting
Independent Production
Terrestrial TV
Terrestrial DMB(TV)
Free
Paid
PP
Skylife IMAP
Radio Broad- casting
Free
Terrestrial Radio
Paid
PP
Skylife, Music Wire Broadcast
Terrestrial DMB(Radio)
Internet Music Station

• Existing Broadcasting Mainly focused on
  Terrestrial TV, Cable TV, satellite, etc.
• Increased demand for portable / personalized
  type
• - Provide individualized broadcasting service
  through mobile network

Satellite DMB, Personalized Service Expects
Higher and Broader Demand than the Existing
Household Based Broadcast Market
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?. Business Environment
2. Market Outlook
Market Research
JUNEs Broadcasting Channel Occupation Rate
PMSBs Subscription Intention Rate
32.3
61
57
20.4
20.5
9
First (Sep-01)
Second (Feb-02)
Third (Nov-02)
(Feb-03)
(Mar-03)
(Apr-03)
Target Customer
Sub Target
Main Target
Early twentieth Early thirties Office Workers
University Students
Mid thirties Mid forties Office Workers (Man)
Middle High School Students
Receiver Preference
High-Tier Mobile Phone-combined with Wireless
Internet Function
Low-Tier Mobile Phone-combined Vehicle
Receiver
(Unit Ten thousand)
2010
2009
2008
2007
2006
2005
2004
Expected Subscribers
800
720
600
400
220
100
50
15.8
14.3
12
8
4.5
2
1
Penetration
Penetration Expected No. of subscribers /
Total population (2004 48,784 / 2010 51,092
thousand)
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?. Service Outline
?. Business Environment
?. Business Plan
?. Conclusion
1. Structure 2. Marketing Strategy 3. Schedule
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?. Business Plan
1. Structure

• Provides Transmission Network
• - Operates the Satellite
• Supports the Infrastructure
• - Shares Distribution N/W and BTS
• - Provides Technology

Japan Toshiba/MBCO

• Jointly Purchases Satellite
• Cross-investment
• Uses Intellectual Property Right

SK Telecom
Satellite DMB Entity

• Operates the Platform
• - Installs and operates Broadcasting
• Center, Gap Filler, etc.
• - Performs Marketing
• - Promotes Relevant Business
• New Contents Distribution Window
• - Expands Customers Accessibility

Equipment Manufacturer
Terrestrial PP, CP

• Provides Programs and Contents
• Expands Business Opportunity
• by Inception of New Platform
• ? Expand influence of Window

• Produces and supplies
• Mobile Receivers
• Provides Equipment
• including Gap Filler
• gt Boosting Equipment
• Market Economy

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?. Business Plan
2. Marketing Strategy

• Channels Consist of Various Service Considering
  the Available Frequency
• - 11 Video
• - 25 Audio
• - 3 Data
• Increase the Efficiency of Operating Channels
  via Time Block Operation

Channels
Pricing

• Design Simple Fee System Considering Available
  Channels

Subscription Fee
Only impose to a new subscriber 16 17
BASIC
Video
Monthly Fee 10 12.5/month
Audio
Premium Channel
Additional fee by monthly base 4.2/month
Distribution (Place)

• Minimize the Initial Cost of Resource via
  Consignment Contract
• Gradual Enlargement from After Market to Before
  Market in Vehicle Market

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?. Business Plan
3. Schedule

Construction Of Infra- structure

• Nov-03
• Final Performance
• Test

Jan-04 Satellite Launch
Satellite
May-2004

Launch of Commercial Service
Sep-03 Start of Build-out
Feb-04 Completed
Broadcasting Center

Oct-03 Commercial Products
Gap Filler
Build-Out

Mar-04 Commercial Products
Receiver
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?. Service Outline
?. Business Environment
?. Business Plan
?. Conclusion
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?. Conclusion
Success of S-DMB Business
The Advantages of Mobile Telecommunication
Company Will Boost up the Success of S-DMB
Business

Sharing the Diverse Infra Structure of Mobile
Telecommunication Company
NETWORK
DISTRIBUTION
DEVICE CONVERGENCE
CUSTOMER MANAGEMENT
Base Stations
Agencies
Terminal
CRM system