South Korean mobile operators have felt the overall benefits of 5G’s major stocks for seven quarters after deploying next-generation services. The top three gamers noticed a 12-month increase in mobile revenue over 12 months, with ARPU improving in almost half of 2020.
LG Uplus was the market chief for mobile companies with total sales of 5.1%, SK Telecom (SKT) 2.8%, and KT 1.6%. All were important enhancements in 2019.
Neil Anderson, head of Asia Telecommunications Analysis at HSBC, said Cell World Reside 5G actually helped, saying that the collective efficiency as a result of the Covid-19 (coronavirus) pandemic is “not dangerous given the impression of roaming income.” Said. ..
In 2021, we forecast total sales growth for mobile companies by 2.5% for SKT, 3% for KT, and 5.4% for LG Uplus.
Businesses are increasing their appeal by rolling out low- to mid-range 5G plans in late 2020, but as with about 25% of mobile phone customers who already have 5G plans, there is a risk of valuable struggle. He thinks it’s low sex. Lowering affordability is the next wave of adoption.
Anderson acknowledged that predicting ARPU development is more difficult than revenue, as it can be affected by the connection to a second gadget. Therefore, he often focuses on service revenue.
Mark Einstein, chief analyst at ITR, a Japan-based analytics agency, said that despite the relatively small absolute positive factors, 5G was marketed within the LTE period when it had voice and SMS revenue from OTT. Has hit companies like KakaoTalk, which has instructed it to help stop the extreme ARPU erosion faced by.
The Korean telecommunications carrier ended in 2020 with 11.9 million 5G subscribers. That’s equivalent to 7.2 million web revenues. Recruitment tempo rose slightly from 1.55 million to 1.8 million quarterly in 2019.
SKT forecasts 2021 with 9 million 5G subscribers, web revenue of 3.52 million, maintains almost the same development price as 2020, and shares 18.8% of full buyer base To 30.9%.
Closing 2020, 5G subscribers were 5.48 million, an increase of 3.4 million. Backed by a wide variety of mobile phones and the iPhone 12 collection, operators added 1.2 million subscribers in the fourth quarter, surpassing their normal quarterly revenue of 850,000.
Conversely, it was only one operator who saw a decline in ARPU. This decreased by 3% in 12 months to 30,269 won ($ 27.48) in the fourth quarter.
KT gained 2.2 million 5G subscribers in 2020, bringing the total to 3.62 million at the end of December. This is 25.3% of the total.
CFO Kim Younger-jin said revenue name penetration is expected to reach 45% by the end of the year, reaching a full 6.44 million (assuming a staff base of around 14.3 million). ).
After boosting ARPU by 1.9% to KRW 31,946 in the fourth quarter, companies expect continuous 5G deployments to improve by 3% in the last 12 months.
By the end of 2021, LG Uplus will be focusing on 4 million 5G subscribers, an increase of 1.24 million, including 1.6 million in 2020. This increase will increase the proportion of next-generation customers from 18.7% at the end of 2020 to 27.1%.
ARPU remained unchanged at 30,926 won during the fourth quarter.
Impression of profit
Anderson actually assumes that in the first half of 2021, 5G will weigh on earnings from increased depreciation due to increased investment. Nevertheless, the established advertising prices were relatively safe.
He found that 5G operators in various international locations can teach from South Korea that community sharing in rural areas is wise.
Although the country is understood to have the broadest 5G protection of any giant on the planet, Einstein is very good at establishing businesses, deploying AR and VR, games, sporting activities and leisure. I feel that the operators are getting a lot of attention because of this. Choices.
An important message for various operators is to see how these new companies are deploying at the speed and low latency of 5G networks. This is because it is becoming increasingly clear that rising information usage and premium costs are not enough to generate revenue. From a brand new network.
In the next few quarters, we’ll make sure that food seekers of these premium companies will drive increased ARPU, increased service revenues, and ultimately revenue.
The editorial views expressed in this article are the views of the author only and do not essentially duplicate the views of the GSMA, its members, or affiliate members.
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