2. Ulink
China Telecom Restructuring
Chapter 1 Chances and challenges
for SK Telecom
New 3G Services In China
Mobile SK Telecom should
Mobile Value Mobile social networks and launch location
Chapter 2 Chain Changed Application is location services: two future
essential based service in
trends for mobile applications China
Chapter 3 Strategy Plan for SK Telecom SWOT Analysis Strategy Implementation
2009/7/20 Ulink Group
3. Ulink
Network Chances for SK Telecom
New Mobile Operators
•SK Telecom has launched TD-SCDMA
project with Datang Mobile and SIM
Technology in China. It is a good chance
TD-SCDMA
for SK Telecom to enter 3G cell phone
market in China because of the lack of
terminal types of TD-SCDMA.
•Advanced technology and experience of
SK Telecom in CDMA2000 can offer
CDMA2000
more cooperation chances with China
Telecom.
•Long time partnership in terminal
manufacturing (SK Mobile) and service
WCDMA provide (UNISK). SK Telecom can use this
opportunity to implant the mature 3G
service into network of the China Unicom.
2009/7/20 Ulink Group
4. Ulink
Logo for 3G Service Launched Services
New MO
WIFI Music Zone; Fetion (IM);
Videophone; 139 Emai;139.com
(SNS, beta version)
Mobile Operators
(MO) begin to play an
important role in
content provider. This
WIFI; Mobile TV; Tianyi LIVE(IM); is a big challenge for
Music Download; Walki-talki SK Telecom in 3G era
of China
WIFI; Music download; Mobile TV;
Videophone; Mobile Email; IM;
Mobile Search
2009/7/20 Ulink Group
5. Ulink
Traditional Mobile Value Chain
Handset Service Content Mobile
Consumer
Manufacturer Provider Provider Operator
At present:
Applications play a core role now!
Handsets manufacturer, Internet giant
try to split revenue with MO in valued
added services. Competition is more
fierce.
2009/7/20 Ulink Group
6. Ulink
Type 1:
Terminal manufacturers control the
service contents. Apple and AT&T is of Handset Content
such type. Manufacturer Provider
Consumer
May happen in China is one kind of
handset can attract extremely large Mobile Operator
number of users
Type 2:
This type is most probably happen in Content
China. MO plays a core role in service Provider
contents. Mobile Consumer
How to cooperate with MO is essential Operator
Handset
in this type. Manufacturer
Type 3: Handset
Application Content
May coexist with type 2. Developer Provider
Manufactu
Each part in the chain split rer Consumer
one part of revenues of
the final services. Mobile Operator
2009/7/20 Ulink Group
7. Ulink
Today Future
Voice
Analog Analog-Digital Digital Only Dual-Mode Wifi+Digital
Data Access
Low Speed 3G (Today) Enhanced 3G
Services SMS/MMS
evolve over
time … Text Messages Pictures Multimedia
Ringtones/Music/Gaming
Ringtones Download Streaming
Services are
proliferating… Video
Clips Streaming Interactive
Services are being LBS/mCommerce
deployed more
frequently… Location sensitive marketing,
such as location-based
advertising
2009/7/20 Ulink Group
8. Ulink
Phone (or smart phone at present)in the future will be a personal digital device
with rich multi-functions. With high data transition speed of 3G networks, data
sharing service will be one trend.
400
300
200
100
0
2008 2009 2010 2011 2012 2013
source: Forward Concepts Corp.
Social network (SN) applications such as
Facebook, Myspace, Xiaonei and Kaixin link
people together on the internet. 3G will
make mobile SN popular. With numerous
consumers and rich data sharing services,
ARPU can be boosted greatly.
2009/7/20 Ulink Group
9. Ulink
With the development of position technology, more and more phones can be
used to locate the position accurately and quickly.
Technology Networks Accuracy
A-GPS All 1-10m
GPS All 10-30m
AFLT CDMA 50-200m
EOTD GSM 50-200m
TDOA All 100-200m
EOA All 100-200m
Booming GPS handsets market.
500 20000
400
15000
300
200 10000
100 5000
0 0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
source: iSuppli Corp.
2009/7/20 Ulink Group
10. Ulink
GPS + SNS = Location-based SN , another trend in the
future. With position technology, your cell phone can:
Tell where all your friends are.
Show people and things that match your profile and
interested related online service.
Discover hot and interesting places
“Local” will be another trend in mobile applications.
Location-based Social Networks Applications Abroad Location-based social networks in the
world could reach revenues as high
as $3.3 billion by 2013, a high ARPU
service.
25
20
15
10
5
0
2008 2009 2010 2011 2012 2013
2009/7/20 Ulink Group
11. Ulink
The Scope of LBS
Mobile Resource Information Entertainment Personal Security
Management Service 1. Location-based 1. People Tracking
1. Sale force 1. Location-base social network and Location
Tracking Advertising 2. Location-based
2. Fleet 2. Navigation games
Management
LBS market size forecast in China and worldwide.
600
Market
500
3.2 400
2.5 300
200
1
100
0
2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012
source: eMarketer,Septemp 2008
2009/7/20 Ulink Group
12. Ulink
Handset
Manufacturer
MAP
LBS APP Content Mobile
MAP Provider Interface Consumer
Developer Provider Operator
Provider Position
technology
Provider
Based on the above value chain, strategies for SK Telecom entering
LBS market in China are as follows:
1) LBS is still in the emerging step in China, therefore, to attract more
subscribers, we suggest to launch location-based social network
application called Ulink.
2) Provide location-based service contents as value added service.
Besides the traditional data services such as music/video sharing,
we suggest to launch the location-based advertising (LBA) service
due to its large potential market.
3) Research new position technology or/and manufacture terminal
with built-in GPS module. This will aid SK Telecom to enter the 3G
phone market in China.
2009/7/20 Ulink Group
13. Ulink
Strength Weakness
Technology Strength. 1. Negotiation difficulties with
1. Mature 3G technology and leadership role
China Telecom, because of
in developing an end-to-end LBS platform
less cooperation experience
in the world
2. Other mobile operators
2. Abundant internet business in China
may become the
3. Productive R&D research center in China
competitors with SK
4. Long time cooperation with companies in
Telecom since they control
China
strictly in value added
Market Strength services
1. Rich market sale experience in LBS in 3. Entering terminal market in
South Korea China is also difficult
2. Solid financial foundation because it is dominated by
other brands such as Nokia.
Culture Strength
1. Similar traditional culture between China
and South Korea
2. Modern culture in South Korea is also very
popular in China, especially in entertain
domain.
2009/7/20 Ulink Group
14. Ulink
Opportunity Threat
Market Opportunity: Competition Threat:
1. Popularity of SNS may make 1. Mobile operators may develop their own
Ulink the most popular location- position technology. Knockoff cell
base social network in China phones which have GPS module are
2. Mobile LBS is in the emerging but also threats.
booming stages in China. SK 2. Internet giants such Google and
Telecom can utilize this chance to Microsoft may enter LBS market by
integrate the internet business proposing applications integrated with
that have launched in China their other products . Even terminal
3. A chance to enter 3G cell market manufacture like Nokia will be the
in China , especially China market competitor in the future.
Mobile which operates the TD- 3. Existing internet SNS applications such
SCDMA network needs more Xiaonei and Kaixing may launch the
types of terminals. This can location-based substitutes.
further enhance the brand impact Policy Threat:
4. May play a leading role in the 1. Location is one of the most private
market of 3G value added information, any one who steal this
services. information for illegal usage may lead to
severe consequence.
2009/7/20 Ulink Group
15. Ulink
1. Choose map interface provider
Provider Map Data Source Market Share Partners We here choose Mapabc as our
map provider because:
Baidu, Tencent 1. Large map database and
68% fast access speed
2. Share potential partners.
Google, Microsoft City8 provides 3D street
10.4% view for most of cities in
City 8
China, cooperation in the
future will make Ulink more
10% NetEase attractive for mobile users.
2. Build LBSN--Ulink
1.Choose the most potential partner: Bedo in China Ulink Mobile SNS launched by
because: China Mobile
The first LBSN in China, and is popular in GPS mobile (beta version currently)
users in China
Honored as the 100 Winners for Red Herring Global 2008.
Win Top ten best internet applications in mobile phone
2. Integrate Cyworld China into Ulink
Ulink
2009/7/20 Ulink Group
16. Ulink
1. Incorporate internet service into Ulink
Location-based Location-base Music download
When Ulink has attracted large number of marketing game and sharing
consumers, launch LBS into Ulink. This can be
carried out by incorporating internet business of
SK Telecom in China into Ulink
2. In LBS, LBA will be the emphasis which
leads to revenue for Ulink
Ulink
The value chain of the proposed LBA
Ads database of Ulink contins:
User profile information of Ulink
User real-time location information
Ads of advertiser
Adviser Ads database MO
2009/7/20 Ulink Group
17. Ulink
Business Model for LBA
1) Send advertisements and charge the advertiser based on response rate or click
numbers. Two schemes are proposed:
Push scenario: Pull scenario:
Send the advertising Send the advertising
messages actively to messages actively to
the subscribers. the subscribers.
Advertisements Advertisements
containing value-added containing value-
information will be added information
more attractive. This ads will be more Where is the
method have great attractive. This restaurant? ads
ads method have great
potential in locations
with high traffic flow, potential in locations ads
ads with high traffic flow,
such as with public Where can I
transport system such as with public buy a glass?
transport system
2) If Ulink becomes a strong brand and its services are generating a lot of traffic
volume( game, music etc.), it might consider asking the MO to pay for generated increased
traffic.
2009/7/20 Ulink Group
18. Ulink
Strategy plan for SK Telecom to enter the
GPS terminal market in China
Partners of terminal Mobile Operator of GPS hardware/technology
Manufacturer China Provider
Both have strategic
partnership with ST For low –end
Telecom. consumers Leading
automobile GPS
manufacture,
acquired by ST
Telecom in 2008
SK Telecom can
provide terminals
Leading provider of
with position For high –end GPS-enabled silicon
function to China consumers
Telecom, since and software location
they adopt the platform , partner
same network with SK Telecom
(CDMA2000) since 2004
2009/7/20 Ulink Group