Analysis of price plan changes

1. Analysis of price plan changes 2009.12.28 Taehyun Kim

2. Contents 1 Price plan changes 2 SKT strategy 3 KT strategy 4 Problem

3. Price plan changes Membership price changes Voice plan changes Data plan changes

4. Membership price changes SKT 55,000  40,000 won (27% off) KT 30,000 24,000 won(2009.12.1) LGT No change

5. Voice plan changes • The way of SKT's price : 10sec to 1sec (KT, LGT NO change) 1 person can save 2,665won per month, Family(2.9people) can save 7,730 won per month. • KT : Fixed Mobile Convergence (FMC) Phone (2009.10)   34,8% off for Voice, 88% off for Data

6. Data plan changes • KT : 2.01 0.25won per packet(88% off) / Smart phone(2009.11) • ‘Smart sponsor’ : Phone aid  price discount • Must use‘음성다량요금제’ or‘스마트폰 요금제’. • 2,500∼20,000won discount per month depends on plans, 6,000∼11,000won additional discount benefit depends on period. • ‘Smart sponsor’ : No promise policy during 3 years discount period. • Teens price plan ‘Al cap150’Message : 15 al  10 al / page. ‘Al cap junior’ : Basic price 10% off for elementary school students.  • Price plan for smart phone : ‘Showsmart 100/500/1000‘ Fixed price : 5,000∼1,5000 won,Free wireless data 500MB∼1000MB <Smart Sponsor>

7. New price plans of SKT • Customized : Specific user benefits enhanced • Integrated : Voice/Message/Data / WCDMA(3G)/Wibro

8. New plan 1 (SKT) • Program for superior Users  Used more than 2 years, promise to use 12monthor 24month, and use more than 29,000won/month.Then users can save 3,000 won ~ 22,000 won per month.

9. New plan 2 (SKT) • PPS (Pre paid Service) plan : 62 won to 48 won per 10 sec (23% off) • ‘PPS light’  : Basic : 166won/day, Voice : 39won/10sec, SMS : 22won/page • ‘PPS plus’  : Basic : 266won/day, Voice : 34won/10sec, SMS 22won/page • ‘PPS friends’  : Basic : 300won/day, Voice collected 3 numbers 25won/10sec, Others 50won/10sec, SMS : 22won/page 

10. New plan 3 (SKT) ‘Number 1’ • Users who use mobile phone a lot such as self-employed, freelace. • price : 110,000won / month • Free Voice : 11,000Min (Out of net 1,000Min) • Voice price : 14won / 10sec

11. New plan 4 (SKT) • ‘Ting PLUS’ Plan : For young people (Teens) • price : 15,000~30,000 Won • Free use : 20,000~75,000won (Voice/Video/Message/Wireless internet) • (15,000  20,000 / 20,000  30,000 / 25,000  50,000 / 30,000  75,000) <Tingplus 150>

12. New plan 5 (SKT) ‘Safe data 100/150/190 control’ • Fixed price : 10,000 won  100MB (Before, 28MB) 15,000 won  500MB (Before, 42MB) 19,000won  2GB (Before 23,500won  1GB) • Both smart phone and regular phone can regist. ‘Maximum protection’ • If user need to use more : 0.2won per 0.5KB

14. New plan 6 (SKT) • Voice·Message·Data Integrated • ‘All-In-One’

17. New plan 7 (SKT) • Integrated price plan : WCDMA(3G) & Wibro • ‘T-Login regular/premium control’

19. KT Strategy • FMC (Fixed Mobile Convergence) • 3W (Wifi + Wibro + WCDMA)

20. KT Strategy • i-Phone : 150,000 in 3 weeks. (1st in korea) • ARPU by iPhone users : 44,366won • ARPU by KT users : 30,749won  iPhone users use wireless data much more. And they expect to use internet by wi-fi (한국 투자증권)

21. Wireless data in USA • Smart Phone market is growing explosively. • Verizon wireless’ wireless data income : $4.1 billion (42.8%↑) • AT&T’s wireless data income : $3.6 billion (33.6%↑)  Smart phone & FMC

22. Global top 10

23. Total changes • 1.7 trillion won ↓ (2010), 2.1 trillion won↓ (2011) (Korea Communications Commission) • 1 person can save 2,665won per month, Family(2.9people) can save 7,730won per month.

24. Problem • It doesn’t contain message price plan • Users might not be recognized these policies

25. Thank You!